LBUSD Policy Didn’t Survive Contact With Power

Laguna Beach School Board’s majority spent years defending governance structures before deciding one of them wasn’t really mandatory after all.

For nearly two years, Laguna Beach has been told that governance matters.

Our policies and bylaws matter.

Transparency and process matters.

At least, that was the pitch to help elect Sheri Morgan and Howard Hills. It justified all of their governance committees, policy reviews, legal questions, public criticism of district leadership, and hours of board meetings spent debating how LBUSD should operate.

The promise was simple enough: institutions are stronger when decisions are made through transparent, established processes instead of the preferences of a few people in power.

Then came May 14, 2026, when a new superintendent was appointed. Suddenly, the process has become negotiable.

This is not a story about whether Dr. Don Austin is qualified, and it’s not even really a story about whether the board had the legal authority to appoint him. School boards have broad authority to hire superintendents, and no one needs to pretend otherwise.

The question is not whether the board had power, but how they used it.

For Howard Hills, his governance obsession did not begin when he was sworn in. For more than a decade, he has shown up around LBUSD with questions about leadership, process, board authority, and whether the district was following the rules closely enough. Howard built a public identity around governance language.

Sheri Morgan’s record fits inside the same frame. Her political brand has been transparency, access, and community voice. She has presented herself as someone trying to pull LBUSD out of a closed-door culture and into a more responsive, public-facing one. Whether you agreed with her or not, the pitch was clear: the old way was too insulated, too controlled, too dismissive of the community.

In 2026, that governance language became formal board work. LBUSD approved an Ad Hoc Governance Committee to review the district’s governance processes, including the clarity, organization, and alignment of board bylaws and policies with CSBA models, statutes, and board-adopted norms. Howard led the charge to create this committee because he insisted that governance structure mattered.

LBUSD’s own Board Bylaw 9310 says board policies are adopted to set clear procedural expectations for district governance. It says policies are binding unless they conflict with law or collective bargaining agreements. The district’s policy manual is supposed to be the framework for how the board governs.

But then Board Policy 2120 became inconvenient.

On June 4, 2026, Sheri Morgan defended the superintendent appointment by arguing that the prior superintendent search had not expired. According to her, the district had already conducted an extensive search less than a year earlier, Dr. Austin had stated he was part of that process, and restarting the work would be unnecessary, expensive, and fiscally irresponsible.

“There is no statute of limitations,” Sheri said. “There is no expiration date on that search process from less than one year ago. Restarting that process and redoing that work is not required by law or policy.”

She also said repeating a search that cost more than $50,000 and took four months would be “fiscally irresponsible.”

That is one argument. However, Howard Hills made another.

He did not simply argue that the policy had been satisfied. He actually argued that the policy was not mandatory.

“The bylaw is not mandatory and it’s not compulsive,” Hills said. Then he went further, saying the board could appoint a superintendent “any way the board wants to do it and any time.”

After all the speeches, all the policy debates, all the governance lectures, all the concern about procedure and institutional standards, Howard suddenly announced that the superintendent-search policy was not compulsory and that the board could, essentially, however it wanted, appoint a superintendent.

Funny how flexible governance becomes when it finally applies to them.

If Howard had never spent years questioning governance, if Sheri had never built her case around transparency, if the board had not created a committee around policy alignment and board-adopted norms, this might read like an ordinary disagreement over how much process is enough.

But that is not the record.

The record is a board majority that used process as both sword and shield until the moment process pointed back at them.

Dr. Joan Malczewski put the concern plainly during the June 4, 2026 board meeting. Search processes exist so institutions can protect themselves from the weaknesses of individual decision-making. They protect against bias, generate better information, create buy-in, and, most importantly, protect the institution and the person being hired.

A superintendent search process is not only about finding a good person. It is about creating legitimacy around the choice.

Joan was not informed that Don Austin was a candidate until the May 14, 2026 closed session, when she was met with a motion to hire him. She said she had no prior information that conversations were happening, no knowledge that negotiations were underway, and no role in determining a start date.

This was not a board-led process; it was a majority-led outcome.

There is a difference.

And that brings us to Dee Perry. Most conversations about the current board majority focus on Howard and Sheri, which makes sense. They speak the most, drive the arguments, and attract the heat.

But they cannot govern alone.

The majority is three votes, and their third vote is Dee Perry.

Dee’s role is quieter, but it is not smaller. She often appears surprised, uncomfortable, or only partially informed. She can seem adjacent to the controversy rather than central to it. But when the vote matters, Dee Perry is not a spectator; she seals everyone’s fate.

Howard and Sheri can argue, posture, explain, defend, and accuse. This allows Dee to remain aloof and pretend to be just a passenger along for the ride. And when she says she was “a little bit in the dark,” that does not make the vote easier for us to swallow. It should make it more concerning. If a trustee is unsure, uninformed, or surprised by how a major decision reached the board, that is the moment to slow the process down, not hand it the final vote it needs.

Dee may not be driving the car, but she keeps handing the keys to Howard and Sheri.

The board majority can keep saying this was about stability. They can say it was about saving money and avoiding another long search. They can say Dr. Austin was already vetted, so the policy was not mandatory. They can say the law allowed it.

Maybe some of that is true, but none of it answers the larger questions.

If governance mattered enough to build a political brand around it, why did it stop mattering here?

If policies matter when Howard and Sheri are criticizing district staff, former board members, or prior decisions, why do they become advisory when Howard already has the votes?

If transparency is the standard, why was the public asked to accept the explanation after the decision rather than being included beforehand?

And if Dee really was “a little bit in the dark,” why was she still comfortable becoming the light that turned the whole thing green?

This is about whether the board majority is willing to hold itself to the same governance standard it spent the last two years demanding from everyone else.

So far, the answer looks pretty clear.

Governance matters — until it gets in their way.

The Cost Shift Hiding in LBUSD’s Budget

Employee benefits are complicated, but the question is simple: will the Laguna Beach School Board protect its staff or ask them to absorb more?

In LBUSD’s proposed 2026–27 budget materials, one line immediately stood out to me.

The Budget Overview shows planned spending dropping from about $93.49 million to $90.15 million. Certificated salaries increase from about $35.57 million to $36.10 million, classified salaries increase from about $13.22 million to $13.58 million, and combined, salaries increase by about $892,000.

Employee benefits go down.

They decrease from about $21.60 million to $21.45 million, a drop of roughly $145,000. The budget shows certificated salaries up 2.1%, classified salaries up 2.7%, and employee benefits down 0.7%.

That is what sent me down the rabbit hole.

I know school district budgets are mostly people, as they should be. Public education runs on teachers, aides, counselors, office staff, custodians, specialists, nurses, administrators, and the people who keep the system functioning every day.

In California, roughly 80% of current school spending goes toward staffing and LBUSD is right in that range. The district’s 2025–26 budget stated that compensation accounted for 77% of the general fund. For 2026–27, LBUSD lists about $71.14 million in personnel and staffing costs against a $90.15 million spending plan. That is about 79%, with the caveat that overall planned spending is lower, which makes compensation a larger share of the budget.

So the issue is not that Laguna spends too much on employees, but what happens when a small raise meets rising healthcare costs.

LBUSD’s benefits line is not just health insurance. It includes STRS, PERS, Medicare, unemployment insurance, workers’ compensation, retiree benefits, OPEB, and health and welfare benefits. In the proposed 2026–27 budget, total employee benefits are about $21.45 million. Health and welfare benefits are about $5.50 million of that total, or roughly 6.1% of the district’s entire spending plan.

Healthcare costs themselves are moving fast. Nationally, the average employer-sponsored family premium rose 6% in one year, and single coverage rose 5%. California is even higher, with family premiums increasing 24% since 2022, outpacing both inflation and wages.

So when LBUSD shows a small salary increase and a decrease in benefits, the public should ask what employees are actually gaining.

A 2% raise can disappear very quickly when healthcare premiums increase. A raise on paper can become a wash in real life. For some employees, especially those covering a spouse or family, it can become a loss.

The Michael Bishop healthcare review helped me understand why this is so complicated.

LBUSD’s health plan year begins October 1, and the district’s fiscal year begins July 1. That means the district builds and adopts its budget before final healthcare renewal rates are fully known. The district is budgeting on one calendar while healthcare costs move on another.

Then there are the plans: PPO, HMO, individual, spouse, children, family. Employees get married, divorced, have babies, retire, change jobs, add dependents, lose dependents, and move between eligibility categories. Those changes do not always happen neatly at the start of a fiscal year.

I am not pretending to be a healthcare expert. I am learning this as I go because the budget number did not sit right with me. But the more I learn, the clearer it becomes that this system is easy to get wrong without serious guardrails.

The review found that from 2022–23 through 2025–26, employee contributions were not set in accordance with the collective bargaining agreements. The district covered a larger share of the total annual healthcare costs than it should have under the contract.

The review also points to a systems problem: timing issues, multiple plans, multiple tiers, changing employee census data, contribution caps, and the need for better coordination between Human Resources and Business Services. The recommendations focus on controls, communication, budget comparisons, review of the cap structure, review of plan design, and possible alignment of the plan year with the fiscal year.

But this should not become a quiet excuse to reduce benefit support.

Under the contract, the district pays up to a negotiated cap, and employees pay what is above it. For example, certificated PPO family coverage, the annual district cap is about $25k. The 2025–26 PPO family premium is about $39k, leaving the employee responsible for about $14k, or $1.4k per contribution period.

For Kaiser HMO family coverage example, the annual district cap is about $21k. The 2025–26 premium example is about $28k. That leaves the employee responsible for about $7k, or about $700 per contribution period.

Those are not small numbers, and that is why salary and benefits have to be discussed together. A district can offer a modest raise, hold to the cap, reduce its benefit costs, and still leave employees carrying a larger share of the burden.

That may be legal under the contract or clean on a spreadsheet, but it still deserves public scrutiny.

The 2021 MOU shows that the district has used bargaining to address healthcare pressure before. LBUSD and LaBUFA agreed to cover increased health and welfare benefits of about $350,000. To me, that says the pressure on healthcare costs was already obvious. The district and union saw the strain and reached an agreement to address it.

Now we are back in a similar moment, only with active negotiations.

I know the public is not privy to what either side is proposing and I understand bargaining has rules, which exist for a reason.

But the budget, review, caps, and board’s financial choices are public. So the community should come to the board with direct questions at June 8th’s meeting.

What is the board’s plan to protect employees from rising healthcare costs?

Is the district budgeting for a real compensation increase, or only a raise that gets eaten by premiums?

Will the board consider additional benefit support, a different cap structure, or better plan design?

How will the district address administrative failures without turning the correction into a cost shift?

What solution is the board willing to own?

LBUSD is not a district scraping by. Our proposed 2026–27 budget describes strong financials, full funding of LCAP goals, healthy reserves in other funds, and a AAA stable rating. Money is never unlimited, but choices exist.

This district prides itself on excellence. But excellence is expensive because good teachers, classified staff, counselors, specialists, and support employees do not stay because a district says nice things about them at board meetings. These people stay when compensation reflects the cost of living, healthcare costs, and the value of the work.

I started with one line in the budget and ended up with a much bigger concern.

Healthcare benefits are complicated, and the review proves that. Rising healthcare costs are real, and the state and national numbers prove that too.

Now the board needs to prove that fixing an administrative problem does not mean lowering support for employees and that a small raise will not be allowed to disappear into healthcare costs.

They need to prove that Laguna Beach Unified is still willing to invest in the people who make the district worth bragging about.