The San Luis Coastal Unified School District approved more than $5 million in budget cuts Tuesday night, a decision that could lead to layoffs and reductions in student services beginning in the 2026–27 school year.
District officials say the cuts were unavoidable after the loss of one-time COVID relief funding and the end of a long-standing tax payment tied to the Diablo Canyon Nuclear Power Plant. But parents, staff and students told trustees the district had years to prepare for the shortfall.
The vote came after hours of emotional public comment from dozens of speakers, including students in band uniforms, teachers, counselors and parents. Many warned the proposed cuts would disproportionately affect student support services.
Music teacher Katie Bravante urged trustees to reconsider reductions to music programs, counseling and teaching positions, citing rising mental health needs among students.
“Since September, I have not had just one or two, but four students who were hospitalized due to mental health crises,” Bravante said. “Who was there to provide the life-saving support they needed? Our counselors were there.”
Superintendent Eric Prater acknowledged the impact the cuts could have on students but said the district faced limited options.
“One-time money to solve an ongoing problem is extremely difficult,” Prater said. “The needs were significant, so we did what we knew the kids and staff needed at that time.”
For nearly a decade, Pacific Gas and Electric paid an annual unitary tax to local agencies—including San Luis Coastal schools—to offset the impacts of operating the Diablo Canyon Nuclear Power Plant. According to the district, that tax brought in about $10 million a year. As the plant depreciated over the years due to its expected closure date in 2025, that money was slashed by nearly 50%.
When the unitary tax structure was created, the plant was expected to begin closing this year, which ended PG&E’s tax obligation. Although state lawmakers later approved legislation extending Diablo Canyon’s operations through 2030, the tax was not restored.
Parents including Michael Lowe told the board the financial cliff was foreseeable.
“A $10 million fiscal cliff over two years when you’ve known about it coming since 2016 is bad fiscal policy,” Lowe said. “Now people’s jobs and livelihoods are at stake.”
District officials estimate about 15 full-time positions could be eliminated by June 2026, including secondary school counselors and teachers in math, English, science, social science and middle school elective courses.
Caroline Cotta, a social science teacher at Los Osos Middle School, said the loss of counseling staff comes as student mental health concerns are increasing.
“Pre-COVID, I maybe referred one or two students a year to our counselor fearing they were depressed or suicidal,” Cotta said. “Now it’s about every two weeks.”
San Luis Obispo County health data supports those concerns. Between 2021 and 2023, nearly half of surveyed 11th-grade students reported persistent feelings of sadness or hopelessness — an increase of roughly 30% compared to a decade earlier.
In a statement, PG&E said continued funding for schools would require new state legislation.
State Sen. John Laird, whose district includes parts of San Luis Obispo County, said he plans to pursue a legislative solution when lawmakers return to Sacramento.
“I’ve met with school officials, talked with the State Board of Equalization and the governor’s office,” Laird said. “I’m looking for a path for legislation when we come back on January 5th.”
The school board is expected to make final budget approvals in June 2026. Trustees encouraged parents, students and staff to remain engaged and to continue pressing state leaders and PG&E as the process moves forward.
