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School district faces $5 Million budget shortfall, proposed cuts affect staffing and students services

San Luis Obispo High School is part of San Luis Coastal Unified School District.
Bree Zender / KCBX
San Luis Obispo High School is part of San Luis Coastal Unified School District.

The San Luis Coastal Unified School District is facing a $5 million budget shortfall for the upcoming school year, driven by a drop in revenue from the Diablo Canyon Nuclear Power Plant and the end of COVID-era funding.

To close the gap, district officials are considering eliminating three secondary counselor positions, cutting seven teaching positions, reducing staff in elementary school libraries, and eliminating an athletics coordinator.

Counselor Ashley Hurni of Los Osos Middle School urged the board to maintain mental health services, saying larger class sizes could leave students feeling “lost in the shuffle” and hinder teachers’ ability to connect with students.

Parents are also raising concerns about the impact on student well-being. Michelle Garner, whose son struggled with mental health challenges last year, said keeping counselors in place has helped her child thrive.

"This year our son is thriving. He's excited to come to school. He's getting really good grades and he's participating in social events again like the school dances, all of which he skipped last year. This would not have been possible without Mrs. Hurni, Mr. Villalta and Mrs. Contreras."

The district’s shortfall is tied in part to Pacific Gas and Electric ending multi-million-dollar unitary tax payments, which had offset economic impacts from the continued operation of Diablo Canyon. Combined with declining COVID-era funding, officials say the board now faces difficult decisions about staffing and student services.

The San Luis Coastal Unified School Board is scheduled to vote on the proposed cuts on December 16, a decision that could reshape services for thousands of students across the district.

Gabriela Fernandez came to KCBX in May of 2022 as a general assignment reporter, and became news director in December of 2023. In September of 2024 she returned to reporting full time.
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