County warns Alum Rock's employee raises could drain reserves; board hears district's answer Thursday

The Alum Rock Union School District board will hear a budget update Thursday, Nov. 12, answering a county warning that new employee raises may be unaffordable, according to the board packet.  The East San Jose district serves about 7,400 elementary and middle school students.

In an Oct. 22 letter, the Santa Clara County Office of Education, which oversees district budgets, said it could not agree the district can pay for its teachers' contract without hurting its finances.  The contract adds raises and a bigger district share of health premiums, costing about $10.4 million this year.  The district plans to pay with about $8 million in one-time state grant money and a $3.7 million insurance settlement.  The county said reserves could drop to 2.28% in 2028-29, below the 3% minimum.

In a Nov. 2 reply, the district said added savings keep reserves at 3% or more through 2028-29.  It agreed one-time money is not a long-term fix and said it will write a spending-cut plan.

The board will also vote on a 2% raise for Superintendent Marnie Hazelton, to $280,500, and on seven early-release days for teacher training starting Nov. 18, with students let out at 12:30 p.m.

Source:  Alum Rock board agenda, Nov. 12, 2026; board packet with county letter and district reply.