KING CITY — After nearly 15 years of state and county oversight, the South Monterey County Joint Union High School District has regained full local control, marking a turning point in its financial recovery and setting the stage for a new chapter focused on students and long-term stability.
State Superintendent of Public Instruction Tony Thurmond joined district officials, educators, students and community leaders Sept. 30 at King City High School to celebrate the district’s successful exit from state receivership, following full repayment of its emergency state loan and the establishment of financial and governance systems intended to prevent future fiscal problems.
“This is an important milestone for the South Monterey County Joint Union High School District. Through years of hard work and responsible fiscal management, the district has restored its financial stability and is continuing to serve our students,” Thurmond said. “I commend everyone who helped make this achievement possible and look forward to the district’s continued success.”
The district’s recovery involved years of collaboration among its elected governing board and administration, the Monterey County Office of Education, a county trustee, the California Department of Education (CDE) and the Fiscal Crisis and Management Assistance Team (FCMAT), which provided financial assessments and guidance.
State receivership occurs when a school district faces severe financial distress and requires an emergency state loan to remain operational. Under that arrangement, local board authority is suspended while state oversight is established to address the district’s finances.
Monterey County Superintendent of Schools Deneen Guss said the district’s recovery required more than repaying its loan. The district also had to demonstrate that it could maintain sound financial practices and responsible governance over the long term.
“The successful exit from receivership is the result of years of hard work, perseverance and collaboration,” Guss said in a statement ahead of the celebration. “Most importantly, it demonstrates what is possible when everyone remains focused on doing what is best for students and the community.”
In her remarks at the event, Guss said the district had met or exceeded all FCMAT standards outlining best practices for school finance. She credited SMCJUHSD Superintendent Caroline Cota, the governing board and district staff for working with county education officials to reach the milestone.
Mike Fine, FCMAT’s chief executive officer, joined the celebration by Zoom. Fine said the district’s exit stood apart from other districts that had gone through receivership.
“None of them have exited under the terms in which South Monterey County Joint Union High School District is exiting,” Fine said. “And that is you actually exit in a position of strength.”
Fine said some districts leave receivership having met basic standards and made improvements but remain in fiscal distress. South Monterey County, he noted, had maintained its focus on financial stability even after FCMAT stopped conducting annual evaluations.
He credited district and county employees, the governing board, state officials and other partners for continuing that work.
“It’s a team from the district, a team from the county, previously a team from FCMAT,” Fine said. “It’s a team from the state board staff and from the staff at CDE, all talking together, all working together, all focused on the same thing. And that’s what’s best for kids.”
Beyond financial recovery
For Cota, the return to local control also represents an opportunity to build on changes made during the recovery.
She said the district has expanded dual enrollment and college and career pathways, invested in classrooms and facilities, strengthened student wellness programs and worked to make services more inclusive for English Learners and students with disabilities.
The district has also expanded student participation in its decision-making through a District Student Advisory Team and a student Board member program.
“Because returning to local control was never going to happen simply by chasing a FCMAT score,” Cota said in her remarks. “We had to apply those standards to build a stronger organization for our students.”
Cota recalled that during her first week as superintendent, she met with Governing Board President David Gaboni and asked him to identify his priorities for the district. Receivership topped the list in her notebook, alongside goals for stronger accountability, clearer direction and more stable leadership.
At the celebration, she reflected on how far the district had come.
“Today, we get to cross that one off,” Cota said.
She also cautioned that the return to local control is not the end of the work.
“One of the most important lessons of receivership is that progress has to be protected,” Cota said.
She said maintaining that progress will require continued fiscal discipline, a collaborative governing board, strong relationships and systems that allow district employees to do their best work.
“It is a responsibility we have been entrusted with again,” Cota said of the return to local control.
The district has adopted policies intended to support that responsibility, including requiring new board members to complete the California School Boards Association’s Masters in Governance training. The board also adopted a governance handbook and a resolution committing to adherence to FCMAT standards for financial planning and transparency.
A new chapter for South County schools
The district’s next chapter could also bring a significant change to how public education is organized in South Monterey County.
Fine voiced support for a proposed reorganization that would consolidate the region’s three school districts into two unified districts serving Greenfield and King City.
Voters in both communities are scheduled to decide in November whether to approve separate transitional kindergarten through 12th grade districts, combining each community’s elementary and high school systems under one governing board and superintendent.
Fine said he believes the reorganization would position both communities to strengthen educational opportunities, though he acknowledged that not everyone may agree with the proposal.
“I think that reorganization positions both of your communities, King City and Greenfield, just to be outstanding places for kids to learn and kids to thrive,” he added.
The receivership celebration also recognized the community’s role in the district’s recovery. Greenfield Mayor Robert White and King City Mayor Mike LeBarre presented recognitions on behalf of their cities, and the Monterey County Board of Education presented a resolution marking the milestone.
Student performances opened the event, which brought together local, county and state education leaders and community members. The formal program concluded with the presentation of a ceremonial gavel to Gaboni, symbolizing the restoration of authority to the locally elected governing board.
“We believe that when our students succeed, their families are stronger, and our communities thrive,” Cota said. “That is why this work matters. And that is why the milestone we celebrate today belongs not just to our district, but to the entire community.”
