A newly released report has determined that the proposal to create a stand-alone Malibu Unified School District fails to meet eight of the nine state criteria required for establishing an independent school district in California.
The Los Angeles County Office of Education (LACOE) Division of Business Advisory Services prepared a Feasibility Study dated April 2, 2025, which examined the City of Malibu's 2017 petition to form its own school district separate from the Santa Monica-Malibu Unified School District (SMMUSD). The study, partially based on analysis from School Services of California (SSC) dated March 5, 2025, concluded that the proposed reorganization would have "a substantial negative effect on the fiscal status of the remaining Santa Monica USD" and "would not promote sound fiscal management."
LACOE staff is recommending that the County Committee deny the City of Malibu's proposal under Education Code 35753. If denied, the decision may be appealed to the State Board of Education by the impacted parties.
The report identified specific deficiencies in eight critical areas:
Inadequate student enrollment: The resulting Malibu USD would not have, nor may it be able to maintain, enrollment of at least 1,501 students.
Lack of distinct community identity: The Malibu area has been part of the SMMUSD for over 70 years, with students attending Santa Monica area schools for more than a century. Separation is not necessary to maintain area identity.
Inequitable division of assets and liabilities: Significant questions have been raised about the financial solvency of both districts should the split occur.
Potential to promote ethnic discrimination or segregation: The reorganization would likely cause dramatic shifts in racial/ethnic demographics of enrolled students in both districts.
Substantial increase in cost to the state: The split would likely impact state funding significantly for buildings and other fiscal obligations.
Disruption of educational programs: Given the significantly smaller enrollment of the proposed Malibu USD, it's unclear whether the new district could provide an equivalent educational program.
Significant increase in school housing costs: Reorganization would likely require new school and administrative facilities, as well as potential remediation of facilities for Malibu USD.
Negative impact on fiscal management: The reorganization would likely significantly impact the fiscal management of both districts, potentially jeopardizing the current basic aid status due to enrollment losses, reduced parcel tax revenues, and the inability to include high-value properties in assessed valuation.
The only criterion met was that the proposal was not primarily designed to increase property values.
"We understand Malibu's strong interest in local control of Malibu schools," said Jon Kean, school board member and unification subcommittee member. "We have supported that goal by putting in the work to find a fair and equitable way to accomplish unification."
The County Committee will discuss the report on April 2, 2025, at 9:30 a.m., with public comments accepted both in person and via Zoom. Meanwhile, the SMMUSD school board plans to discuss three mediated agreements at their April 23, 2025 meeting as they continue to work toward a potential solution that could satisfy state requirements.
The SMMUSD Board of Education has urged the County Committee to deny the original 2017 Malibu petition while encouraging stakeholders to work with them on finalizing the three agreements required to move forward with a viable unification plan.
The lengthy process began when the City of Malibu submitted a petition through a 2015 resolution to form its own school district separate from Santa Monica. After years of starts and stops, negotiations, and community hearings, the proposal has finally reached the evaluation stage.
If approved, the reorganization would create two independent school districts: Malibu Unified and Santa Monica Unified, replacing the current combined district structure that has existed for decades.
Supporters of the split, primarily Malibu residents, argue that separation would allow each community to govern its schools according to local needs and priorities. Opposition has centered around financial concerns, with questions about how resources, funding, and assets would be divided between the two proposed districts.
The road to Tuesday's vote has been marked by sporadic negotiations between the city of Malibu and the school district. The parties engaged in extensive mediation sessions attempting to forge agreements on revenue sharing, operations, and other critical aspects of the potential separation but no binding agreements were reached.
Regardless of Tuesday's vote by the County Committee, the petition will ultimately proceed to the State Board of Education for final determination.
