I want to address the recent letter from Morgan Hill Unified School District Board President Adam Escoto regarding the district’s budget situation. While the claim of financial improvement is encouraging, it only tells part of the story. True transparency is still lacking.
The return of the Budget Advisory Committee (BAC) was not a proactive decision by the district, but rather the result of intense community pressure. Parents, teachers and taxpayers demanded the reinstatement of an advisory body to provide oversight and accountability. Despite this, BAC meetings remain closed, and requests for critical budget-related information from committee members themselves have been ignored by the administration. This lack of openness and communication undermines trust and transparency.
Furthermore, the district hired a controversial third-party consultant, MGT, to lead the BAC as it navigates over $15 million in expected cuts over the next three years—cuts that stem directly from chronic deficit spending of more than $16 million annually. Nearly 90% of the budget now goes toward operational costs, well above the recommended 80%, reflecting poor management of one-time COVID relief funds.
These funds were spent on programs and staffing without a sustainable exit plan, creating the financial instability we see today. The administration maintains that the spending was necessary and well thought out, but the absence of a long-term strategy has left the district scrambling to fill the gap.
The district’s recent “surplus” is misleading. This surplus was the result of many accounting errors, unfulfilled special education contracts, and temporary fluctuations in federal interest income, not true fiscal health. The district also drew heavily from its reserves and implemented several cuts in 2023-24. District’s reserves will dwindle from 23% to a projected 11% over the next three years.
The district’s reported surplus, primarily resulting from accounting errors, raises significant concerns about its financial management competence. And if there really is a surplus, why do our local elementary schools still struggle daily with basic supplies and maintenance issues? Why are teachers facing classrooms with broken copy machines, and why do parents have to fundraise to cover essential educational resources? All the while, adult education courses are hosted at the FACE Center, with childcare and dinner provided.
Additionally, the district’s leadership has created a polarized and toxic environment. With record high staff turnover (nearly 75%) and a culture of retaliation and fear, it’s clear that the administration’s approach is failing.
The superintendent’s recent performance evaluation (July 2024), which she barely passed (with three unsatisfactory votes out of seven), speaks volumes about the community’s dissatisfaction with the leadership and the district’s persistent struggles.
This isn’t just about budget numbers—it’s about the future of our students. MHUSD has experienced sharp academic and enrollment decline. This decline is a direct result of poor leadership and the board’s inability to address core issues. We need to prioritize students’ success, not partisan agendas.
The time for change is now. This November, we must elect new leaders who will demand accountability, transparency and fiscal responsibility.
Our community deserves better than status quo or incumbent candidates backed by the current administration. We need fresh voices and independent leadership to rebuild trust, restore financial stability and ensure a bright future for every student in MHUSD.
Anahita Yazdi
MHUSD Parent
Anahita, I couldn’t agree with your response more.
The letter to the editor written by Board President Adam Escoto on September 26, 2024, is naive at best, at worst another effort to manipulate the public. He claims, “We ended the fiscal year with a surplus of slightly over $1 million in the District’s Unrestricted General Fund,” but he fails to address the district’s ongoing deficit spending, which will result in a gap of $16 million over the next three years. While he asserts that the Board is being proactive and transparent about this financial crisis, it’s worth noting that neighboring districts, which managed their one-time COVID funds responsibly, DO NOT face these issues.
Under this Superintendent and Board, MHUSD has used one-time funds to add programs and personnel —a fundamental financial misstep. Basic finance rule: one-time funds should NEVER be used for recurring expenses. Now, the district is being held accountable by the Santa Clara County Office of Education, which oversees local district budgets. MHUSD has until December to develop an ongoing spending reduction plan – in other words, cuts are coming. Not because COVID funds are gone, but because MHUSD used their COVID funds irresponsibly.
Local elections matter, and it’s crucial to support leaders who understand fiscal responsibility. Unfortunately, this Board president—and the candidates he endorses—do not.