Morning Report: Broke District Approved Raises Despite Warning
EM - News Moderator 
The San Ysidro School District recently made a startling disclosure: The district was running out of money and on track to be more than $4 million in the red.
District leaders said the sudden downturn took them by surprise and was due to factors beyond the district’s control: Declining enrollment, rising costs, fluctuating state funding.
But our Jim Hinch discovered the district had ample warning it was headed toward fiscal disaster.
The same day it approved the fourth raise for employees in as many years, the district received a dire warning from county education officials that the latest pay package risked pushing the district over the financial edge.
Officials approved the raises anyway. Now they’re scrambling to make cuts that could affect popular programs.
Superintendent Gina Potter defended the district’s actions, saying budget problems “are being proactively addressed.”
Second Home Tax Sails Through Committee
Councilmember Sean Elo-Rivera’s second-home tax unanimously passed the Rules Committee Wednesday.
While Elo-Rivera’s office said the tax could generate up to $51 million, the Independent Budget Analyst said an “optimistic” projection during the first year would be closer to $23.8 million. A conservative one would be $12.1 million, the IBA said.
Revenues could also drop over time, the IBA noted, since some people will try to seek an exemption by living on the property or leasing it. It’s also not an immediate budget solution. If all goes according to plan, dollars would start coming in late fiscal year 2028.
Still, Councilmember Elo-Rivera and supporters see it as a win for the housing market. “It changes incentives, so that some homes currently sitting vacant are more likely to be rented or sold to people who actually live here,” said Elo-Rivera.
New Revelations in the County Contractor Criminal Case
The District Attorney’s Office is expanding its criminal misappropriation case against the ex-COO of a former county contractor who allegedly used public funds to pay for plastic surgeries and family vacations
Our Lisa Halverstadt reports that prosecutors now believe Amy Knox, the former chief operating officer of the nonprofit Harm Reduction Coalition of San Diego, misappropriated at least $210,000 in public funds for everything from plastic surgeries to family vacations. That’s significantly more money lost than they originally alleged she stole. They are also digging into Knox’s now-former role as board president for the Crossroads Foundation, another county contractor. Knox has pleaded not guilty to the charges against her.
Halverstadt shared the latest on the criminal case plus how Crossroads, the county and its top bureaucrat are responding.
North County Report: A Beloved Carlsbad Strip Mall
It’s an oxymoron for the ages: beloved strip mall.
A group recently gathered to mourn the coming demolition of Carlsbad Village Plaza. They loved it for its walkability and its divey old haunts. People protested the closure for years, but city leaders said their hands were tied. The plaza will close to make way for a mixed-use development that includes market-rate and affordable housing.
Plus, activists planned to protest a contract between Escondido Police Department and Department of Homeland Security that allows ICE officers to use a city-owned shooting range.
Read the full North County Report here.
Don’t Miss It: Women Leading the Conversation
Join us on March 26 to celebrate women and hear from inspiring leaders “Building the Finest City.” Our guest speakers include Fabiola Bagula, Maya Madsen, Erica Pinto, and Angela Shafer-Payne. Get your tickets here.
In Other News
- La Jolla’s iconic Mushroom House has become a flash point, with city officials declaring the tower-like structure near Black’s Beach a nuisance and the property owner squaring off against partiers and graffiti artists to clean the building. (Times of San Diego)
- The city of San Diego this week moved closer to building a bridge across the San Diego River in Mission Valley by transferring two acres near Fenton Parkway from the city’s utility department to its transportation department. (Union-Tribune)
- San Diego City Councilmember Raul Campillo aims to make San Diego the latest in the county to regulate e-bikes. His proposed initiative would ban riders under age 12 and limit when bikers can carry passengers. (KPBS)
- In a move that shook education officials statewide, FBI agents on Wednesday raided the home and office of Los Angeles Unified School District Superintendent Alberto Carvalho. Agents’ investigation appears tied to a company that developed an AI chatbot for the district. (Los Angeles Times)
- The newly arrived California Post is out of the gate strong with its latest pinup – a dog’s fluffed-up behind, courtesy of local pet groomer Logan Rago. Rago, it seems, is bringing the Brazilian Butt Lift to a dog park near you.
The Morning Report was written by Jim Hinch, Mariana Martínez Barba, Lisa Halverstadt and Will Huntsberry. It was edited by Will Huntsberry and Scott Lewis.
The post Morning Report: Broke District Approved Raises Despite Warning appeared first on Voice of San Diego.
