For several years, some employee healthcare deductions were calculated incorrectly. The District continued paying insurance premiums, but certain employees were not charged the amounts required under the established contribution formulas.

At the November 13, 2025 Board meeting, Assistant Superintendent of Business Services Manoj Roychowdhury explained that the problem resulted from weak internal controls, communication gaps between Human Resources and Business Services, conflicting fiscal and insurance-plan calendars, the absence of an annual reconciliation process and incorrect contribution rates published in the Employee Benefits Guide.

This was an administrative failure, but it was not created by employees.

They did not establish contribution formulas, publish benefits guides, administer payroll, or determine the deductions on their paychecks.

Board President Dee Perry made that distinction clearly: “Our employees should not have to pay for these errors, and I’m certain we can find a way to handle this without burdening our wonderful staff.”

As someone who has worked in HR for 20 years, I agree.

Benefits administration is complex. Insurance rates change annually. Employees add dependents, change plans, marry, divorce and experience other life events that affect payroll deductions. Those changes must be coordinated across insurance records, payroll systems, contracts, contribution tables and employee communications.

Mistakes can occur without malicious intent. Accountability means identifying the problem, correcting it and strengthening the process.

The District did exactly that.
Roychowdhury outlined annual reconciliations, improved coordination between departments, specialized staff training, outside consulting support and efforts to simplify the benefits structure.

“We have recognized the error and now we should move forward, close the error to make us whole and move ahead with improved processes.”

At the December 16, 2025 special meeting, he presented four corrective-action options.

The Board unanimously chose to absorb the approximately $1.04 million cumulative cost rather than seek repayment from employees.

The error was investigated. The procedures were corrected. The financial decision was made.

Yet public discussion continues to focus on inflated figures and repeated suggestions that employees received something improper. That does not improve accountability—it distracts from the more important conversation about the future of employee healthcare.

Over roughly six years, healthcare premiums increased nearly 30 percent while the District’s contribution caps barely changed. As insurance costs rise without corresponding employer contributions, employees bear a growing share of the expense.

That is the issue Laguna should be debating.

Healthcare benefits are compensation. Every employer must decide how much to invest in them to recruit and retain talented employees. Laguna Beach should make that decision intentionally through collective bargaining using accurate information—not misinformation about a resolved accounting error.

Our teachers and staff educate the future doctors, artists, engineers, business owners and public servants who will shape our community.

The District should remain accountable for what went wrong.

But accountability should lead to better policy, not become an endless political distraction. The question now is whether Laguna Beach will support sustainable healthcare benefits for the people who educate our children.