Recent Negotiations


On March 2, 2021, the City of Malibu made what it considered a generous "last best" financial offer in renewed negotiations with the Santa Monica-Malibu Unified School District (SM-MUSD). The proposal ensures that the Santa Monica schools will have at least the same per-pupil funding for the coming decade. The City proposed a tax-sharing agreement that transfers property tax revenue from Malibu to Santa Monica for up to 10 years in the event SM-MUSD’s per-pupil funding dips below its current level. In addition, the proposal also identifies the approximately $50 million in Other Local Funding (grants, sales taxes, rental income, redevelopment funds, and parent/business donations, etc.) that SM-MUSD receives each year beyond state education funding and property tax sources which Santa Monica will be able to retain in separation. View the Separation Offer

On April 8, 2021, SM-MUSD School Board voted 6-1 in closed session to reject the City's offer. The following day, on April 9, 2021, SM-MUSD provided its response to the City's March 12 offerits analysis on the SM-MUSD territory transfer and the SM-MUSD Superintendent provided this message

On April 13, 2021 the City’s Ad Hoc Committee on School Separation directed the City Attorney to respond to the SM-MUSD with a reasonable settlement offer, and on April 14, the City Council ratified that settlement offer. Since the financial terms of separation appear to be the only issue remaining and the City understands that the Los Angeles County Office of Education (LACOE) and its consultant, School Services of California, are well-suited to determine fair and equitable financial terms for separation, the City proposed that LACOE and School Services of California develop the financial terms of separation. 

The City urged SM-MUSD to agree to be bound to the financial terms to be developed by LACOE and School Services and to go on record that it supports Malibu’s petition to create an independent Malibu Unified School District. View the City’s counter proposal

On April 16, the SM-MUSD Board voted 5-2 to reject the City of Malibu's counter proposal on unification and would not agree to be bound by the LACOE County Committee's recommendations.