VISTA — A proposal by Councilwoman Katie Melendez will see the C…

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Kevin Shin, who is in his first term, launched the Pinocchio Project this week, describing it as an independent effort focused on understanding how AI systems can analyze human behavior, refine persuasive messaging and scale influence in ways that were once limited to intelligence agencies or specialized psychological operations (psyops).

The project is not sponsored, funded, or staffed by the city of Carlsbad, he said, but grew out of his experience working with AI tools and observing how rapidly the technology is evolving. Shin, a former Marine and defense contractor in communications and global positioning systems (GPS), tapped into those experiences to help draw up the project.

“I’m just going to tell people I’m doing this and I’m showing you step-by-step,” Shin said of his transparency-first mindset for the project. “I feel like if you can see the journey through the eyes of a local elected, it’s still close enough to realize that this can happen to you. If you’re C-Suite, it’s going to be on a different level. It’s not on the political level, it’s on the enterprise level.”

The Pinocchio Project comes as lawmakers nationwide grapple with the implications of AI, particularly the rise of AI-generated deepfakes and other synthetic media. In recent years, Congress and state legislatures have moved to address some of the most visible harms, including nonconsensual sexually explicit deepfake images and deceptive election content.

Those laws, however, have largely focused on takedowns, criminal penalties and civil remedies for specific abuses. Shin’s project addresses a different question — how AI-driven persuasion and behavioral targeting could affect decision-making itself, even when no single piece of content is illegal.

For example, Shin said he began working in ChatGPT and created agents for each city director or senior leader, as the City Council has one staffer in a limited capacity for all five members, unlike a larger city like San Diego. An AI agent is a software system that autonomously performs tasks and pursues goals by using reasoning, planning, and memory capabilities on behalf of a user, in this case, Shin.

He kept those independent of each other to avoid hallucinations as much as possible, but eventually ChatGPT began to inquire about each director’s personality type. Shin immediately raised a red flag. He said there were several paths he could take, one of which was to give ChatGPT the personality types of those individuals and begin his own influence campaign unbeknownst to those staffers, which he did not.

“Everyone had their own agent, and I was feeding it information about what I was learning and knowing, so it wouldn’t cause hallucinations had I done it under one umbrella,” Shin explained. “It started prompting me with questions about the personality types of each of the directors. It made me realize it was asking for a psychological profile of them, which in turn means benignly creating messaging in favor of these directors. I started thinking about the ethical side of it, and it’s persuasion.”

The revelation led to Shin asking what would stop anyone from doing this to an elected official, C-Suite business people or others. He linked up with Rick and David Jaenisch, both of whom have high-level experience working with AI, to learn more about profiling an individual.

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Shin said they showed him how easy it would be to pull all the videos of Shin’s public duties, such as City Council, San Diego Association of Government, and other meetings, and for AI to analyze facial cues, voice inflections, posture, his arguments for or against an issue, and more.

Joining Shin are former federal counterintelligence officials Bob Dougherty, a retired CIA agent, and Fred Simon, along with other experts. Shin said Dougherty told him the ability for AI to break down an elected official in minutes, rather than weeks, months or years by traditional human intelligence gathering operations is “like gold.”

“What scares me the most is that it’s not large organizations, or big giant PACs or nation-states that would do the influence work,” Shin explained, “it’s that this can end up being so accessible that anyone can get it and figure it out. They can ask promptly how to stage a monthlong, yearlong operation to influence somebody in one direction or another.”

As for the project, he said he will be the “guinea pig” for testing some of the program’s influence operations. With the team he’s assembled, Shin said he’s confident he will be able to show how these campaigns function and how an elected official, or others, can combat those attempts at influence.

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While the project was just announced, Shin said the public can follow from the beginning online to witness how these practices operate in the real world. He intends to launch a series of workshops, briefings and long-form interviews with subject matter experts in the first quarter of 2027. As AI capabilities change, the project is intended to evolve alongside them, translating complex technical risks into practical awareness and defensive frameworks for public officials, business leaders and the broader community.

The effort will also engage with local AI developers and academic institutions throughout the San Diego region, including The Design Lab at the University of California, San Diego, Shin said.

He said some elected officials have already taken notice, but most are waiting to see the results before fully engaging with the project.

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CARLSBAD — The Carlsbad City Council approved the creation of a new community-oriented policing team, along with six additional sworn police positions and more than $680,000 in one-time funding on Tuesday.

Carlsbad Police Chief Christie Calderwood advocated for a Community-Oriented Policing and Problem-Solving team, commonly known as COPPS, after an internal assessment was conducted last year. The team would focus on crime prevention, quality-of-life issues, and community engagement, shifting some non-emergency responsibilities away from patrol officers.

The council authorized six new full-time positions — one lieutenant, one sergeant and four police officers — and $684,350 in one-time appropriations from the city’s General Fund for the current fiscal year. Those funds would cover equipment and vehicle purchases needed to launch the team.

“The assessment identified several ongoing and future challenges in our city and within the law enforcement landscape,” Calderwood told the council. “The challenges presented included a growing population, changes in housing types, recent changes in state law, the city’s crime trends, response times, staffing challenges and other factors impacting workload. We’ve seen other challenges arise or be compounded. The continued e-bike usage … and increases in protests across the country. In 2025 alone, we staffed 17 protests.”

Calderwood said the new team is necessary to address recurring crime trends and quality-of-life complaints while keeping patrol officers focused on emergency calls. The department reported that while it has long embraced a community policing philosophy, increasing call volume and expectations for rapid response have made it difficult to sustain proactive engagement without dedicated staffing.

She also detailed the past three weeks of police activity with several major incidents, such as a stabbing, a shooting, an elder scam, a victim who was attacked with a machete, a social media influencer entering La Costa Canyon High School, and middle school students fighting in Poinsettia Park, which made national news over the racial overtones during the incident. Calderwood said over the first three weeks of March, the department has taken nearly 7,000 calls and opened 400 cases.

Additionally, Carlsbad is one of just two cities without a dedicated COPPS team, she said.

The COPPS team would work with residents, businesses, schools, and community organizations to identify recurring problems and develop long-term solutions using a nationally recognized problem-solving model known as SARA — scanning, analysis, response and assessment.

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The lieutenant will oversee the COPPS and Homeless Outreach Team (HOT) and park rangers, Assistant Chief Reid Shipley said. Currently, a CPD special investigations lieutenant oversees the HOT officers, and Shipley said that with the new chain of command, it will free up the SI lieutenant to focus on the most pressing and sensitive cases facing the department.

Shipley said consolidating those responsibilities would improve coordination and accountability while reducing the need to pull patrol officers away from 911 calls to attend community meetings, protests, and ongoing neighborhood issues.

“The COPPS team … would provide a dedicated resource to identify, address criminal trends and quality of life issues throughout the city,” Calderwood added. “This team would also support the department’s efforts to reduce response times for calls for service.”

The department also argues the new team could help improve response times for the most serious calls. Carlsbad’s five-year strategic plan sets a goal of responding to Priority 1 calls in under six minutes, a benchmark the department did not meet in 2025. Officials say addressing chronic, non-emergency issues through the COPPS team would reduce repeat calls for service and keep patrol officers available for urgent incidents.

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To help fund the one-time costs, staff recommend reducing a previously planned $3 million allocation for a full police radio replacement to $100,000, freeing $2.9 million to bolster the General Fund reserve. Calderwood said a full replacement is no longer necessary and that radios can continue to be replaced in smaller batches as needed.

“I look at something like this as an investment in the quality of life,” Mayor Keith Blackburn added.

Ongoing salary, benefit and operating costs would be added to the city’s fiscal year 2026-27 budget, with CPD estimating the new positions would increase its annual operating budget by about $1.6 million beginning next fiscal year.

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VISTA — Nestled in Brengle Terrace Park sits one of the region’s performance gems.

The Moonlight Amphitheatre is celebrating its 45^th anniversary this year with classic musicals and a robust concert lineup. Over the years, the theatre has grown from a humble, do-it-yourself operation to one of the, if not the best, venues in all of San Diego County.

The 2,000-seat outdoor theatre is also home to some of the best actors and performers in the region, while offering season-ticket holders, first-time visitors, and students a Broadway-like experience.

“I can sell the Moonlight to anybody, and I do,” said Steve Glaudini, the producing Artistic Director of the city’s Cultural Arts Division. “We found that the concerts have been building a new audience for our musicals. We, and this community, love it so much.”

He said the theatre began in 1976 as a basic stage where actors, crew, and others had to build and tear down sets after each show. Five years later, a Vista High School teacher started the Vista Summer Music Festival, which held two shows each year.

In 1990, the theatre was renamed the Moonlight Amphitheatre with the Moonlight Stage Productions performing on a “rickety” stage, Glaudini said. Staff had to put up wooden trusses every year for the lights, as there were no permanent structures. The stage had no roof, no orchestra pit, no restrooms or dressing rooms, and had to use makeshift DIY concepts so the theatre could function.

But then in 2008, the city of Vista, which owns the facility, poured in several million dollars for a massive rebuild, which opened in 2009, Glaudini said. The new facility gave the theatre a much-needed facelift with a new stagehouse, stage roof, state-of-the-art lighting, audio, an orchestra pit, dressing rooms, and other amenities needed to execute high-quality shows.

Since then, the theatre has also added state-of-the-art LED boards to help with set design and production, giving the audience an even bigger and brighter visual.

“They started work on Sept. 1, 2008, and the theatre reopened in June 2009, which is like an impossibility if you think about it” he added. “A lot of overtime and triple-time hours. We finally had proper bathrooms and hang costumes in trees. To have the full stagehouse, which was the first one in California to have the computer-run flyloft, so there are no ropes back stage.”

Glaudini said those upgrades allowed Moonlight to bring in bigger and more complex shows. In 2009, they hosted performances of “Cats,” “Miss Saigon,” and others. He said it opened up the ability for the theatre and its staff to produce better shows, but also come into modern times with production.

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As for attendance, he said it relies on show selection, as more people come for the bigger shows, while others, while good and entertaining, don’t move the needle as much. Still, after over 45 years, Glaudini said the theatre has created a loyal fanbase.

Managing Director Shelby Caughron, who joined the staff in 2014, said the theatre had its first sellout with “Mary Poppins.” The theatre would host between 600-800 attendees on weekdays, but now they see anywhere between 1,300 to 1,500.

This year, though, has not disappointed for season-ticket sales, she said. More than 7,000 have been sold for this season and an all-time high for Moonlight.

In 2016, Moonlight rolled out its concert series, Caughron said. The concert series has tried different models, she said, noting one year saw a weeklong concert series called Summer Jam. But now, Moonlight will host two or three concerts the weekend before a musical begins its three-week run, and has been a solid approach for the theatre to introduce a new audience, Caughron said.

“The concerts really picked up when we came back from COVID-19,” she added. “I feel like that’s when the concerts really took on their life. With this different programming, we’re seeing a different demographic of patrons, which has been an excellent addition to our theatre.”

This year’s slate of musicals includes legendary and iconic shows such as “The Cher Show,” “Mean Girls,” “Charlie and the Chocolate Factory,” “Guys and Dolls,” and “Come From Away,” Glaudini said.

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He said this year’s slate has something for everyone, which is why he focuses on selecting a diverse lineup of musicals each year.

Of the shows this year, “The Cher Show,” “Mean Girls,” and “Charlie and the Chocolate Factory” are regional premieres. “Mean Girls” is adapted from Tina Fey’s cult classic movie”, while “Charlie and the Chocolate Factory” will feature the music from the Gene Wilder adaptation from the 1970s, he said.

“Guys and Dolls” is a longtime classic production, while “Come From Away,” is a heartfelt musical based on the real-life events in Gander, Newfoundland, Canada on 9/11, Glaudini said. The show recounts how residents of the small Canadian town dealt with 38 planes and 7,000 passengers that were ordered to land at the airport during the terrorist attacks.

“We actually have a performance on the 25^th anniversary on 9/11 this year,” Glaudini said. “It’s important to us. It first premiered at the La Jolla Playhouse and we’re the first regional theatre in the area to do ‘Come From Away.’”

The concert and performance schedule includes “Wizard of Oz on Ice,” on March 27, Fortunate Son — A Tribute to Creedence Clearwater Revival & John Fogerty on March 28, and many more through May, July, August and October. The year will be capped with the popular free Christmas community event, Jingle Terrace.

The Christmas event has become a staple of the holiday season for Moonlight and one of the few free mass community-wide events. The theatre is decorated with lights, Christmas and holiday music, decorations, Santa and even a small petting zoo.

Thousands of residents from across North County pour into Jingle Terrace with kids in tow to celebrate and kick off the holiday season.

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“I can’t express how proud and privileged we are to provide that event to the community,” Caughron said. “We are privileged to have the support of the Moonlight Cultural Foundation, which gets grant funding and raises funds throughout the year, so we are able to put on an event that is free to the community.”

The foundation is the fundraising arm for the theatre. They are responsible for purchasing the LED boards, she said, along with supporting Moonlight Youth Theatre programming.

Additionally, Moonlight partners with the Vista Unified School District for its four-night Arts Under the Stars showcase. Students from VUSD perform various musical genres in front of friends and family.

All in all, the theatre has become a local force with some of the highest quality shows and performances in San Diego County.

Note: The musical season starts with “The Cher Show” (April 29-May 16), followed by “Mean Girls” (June 3-20), “Charlie and the Chocolate Factory” (July 8-25), “Guys and Dolls” (Aug. 12-29) and “Come From Away” (Sept. 9-26). For tickets, click here.

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Note: This is the first part in a three-part series on CARB’s Cap-and-Invest proposal and the surrounding controversy. Part 2 runs on Tuesday and Part 3 on Wednesday.

SACRAMENTO — California air regulators are weighing a sharp cut to carbon allowances under the state’s Cap-and-Invest program for fuels, a move oil companies, labor allies and some lawmakers say could add about $1 per gallon to gas by 2030, while climate advocates argue the cut doesn’t go far enough.

The California Air Resources Board’s proposal, which will be heard on May 28, would remove 118.3 million allowances between 2027 and 2030, tightening a market that now adds roughly 24 cents per gallon to prices at the pump. Industry letters to Gov. Gavin Newsom warn allowance prices could rise toward $135 per metric ton (about $1.21 per gallon), while a coalition led by NextGen Policy urges deeper cuts, up to 265 million allowances, to stay on California’s net-zero trajectory.

Industry leaders, such as Chevron, PBF Energy, and Marathon Petroleum Corp., outlined their warnings in letters to Newsom and CARB, arguing the proposal would cripple the state’s remaining refineries, eliminate thousands of jobs and trigger steep fuel price increases in neighboring states. Gov. Joe Lombardo (R-NV) also weighed in, saying California’s plan would spill over into neighboring states relying on California’s refining capacity.

Companies point to CARB’s allowance proposal, a historic reduction of the cap that they say will increase allowance prices. One allowance equals the right to emit one metric ton of carbon dioxide equivalent (CO₂e), and as CARB removes allowances from the system, companies must either cut emissions or purchase the remaining, increasingly expensive permits at auction. Critics argue the reduction also functions as a stealth tax on working families.

“The proposed regulation will cripple the survivability of the state’s remaining refineries, which will result in California losing the entire industry to this misguided program,” Andy Walz, Chevron’s president of Downstream, Midstream and Chemicals, wrote to Newsom and CARB. “This regulation will increase transportation and aviation fuel prices for consumers. It will risk significant job losses, including many high‑paying union jobs, while reducing funding for essential public services. It will upend California’s fuels market and threaten critical energy and national security assets.”

Labor leaders echoed those concerns. The powerful State Building and Construction Trades Council of California warned if the CARB Board of Directors, all of whom are appointed by Newsom, approves the proposal, every refinery will shut down.

Also complicating matters is the war in Iran, which has sent shockwaves through the global oil industry, supply chain and markets. AAA reports the cost per gallon has spiked at least 60 cents per gallon for unleaded over the past week in California, while the national average increased 20%, according to PBS.

“I am shouting at the mountaintops because California is truly in a death spiral with the oil and gas industry,” Sen. Suzette Valladares (R-Valencia) told KCRA on March 8. “This is it. There is a very short window of opportunity for the legislature and governor to do the right thing, to address this crisis. We need serious discussion and serious policies to address our energy crisis.”

When CARB removes allowances, or credits, from the system, companies must either cut emissions or purchase a dwindling supply of permits at auction.

How Cap-and-Invest works

The state’s program is a market-based emissions system designed to reduce greenhouse gases while generating state revenue for climate initiatives. CARB sets an annual statewide emissions cap, issues allowances equal to that cap, and then reduces the number of allowances each year, according to CARB records.

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The agency had previously indicated it would scrap 265 million allowances by 2030. A coalition of environmental advocates led by NextGen sent a letter supporting the proposed 118.3 million reduction but urged the board to return to the full 265 million allowances to advance the state’s ambitious climate goals.

While the program applies broadly across industries, refineries and fuel suppliers carry an outsized role as transportation accounts for roughly half of the state’s emissions. Every gallon of gas and diesel sold in California carries compliance costs baked into its carbon content.

Currently, Cap-and-Invest adds about 24 cents per gallon, not including the other taxes and fees. Industry leaders say CARB’s planned allowance removal will more than quadruple the cost by the end of the decade.

“According to the California Energy Commission, Cap-and-Invest currently contributes $0.24 to the cost of a gallon of gasoline,” Walz wrote. “In the 2018 Cap-and-Trade Updated Standardized Regulatory Impact Assessment (SRIA), CARB estimated that for every $10.00 of allowance price, the price of gasoline could increase by about $0.09 per gallon. If allowance prices hit the price ceiling of approximately $135 in 2030 as predicted by UC Davis, C&I would contribute $1.21 per gallon to California gasoline prices.”

Industry letters warn that removing allowances while tightening the cap would “cripple the survivability” of remaining refineries. They cite an industry footprint of 536,770 jobs, $53 billion in labor income, and contribute $64 billion in local, state and federal tax revenue, and $166 billion in total economic value, according to industry analyses.

Critics also argue the proposal poses national security risks. Chevron shuttered one refinery last year, and Valero’s Benicia refinery is scheduled to close in April. Those two represent 18% of the state’s total refining capacity, according to reports.

“The messaging out of California has not been very good, especially to the refinery industry,” Mike Monagan of the State Building and Construction Trades Council of California, told the Joint Legislative Committee on Climate Change Policies on Feb. 23. “We’ve lost two refineries in the past 12 months. If these regulations are implemented, every California-based refinery will shut down.”

Even so, a 2024 Transportation Energy Supply Chain Infrastructure & Investment (TESCII) study found refineries cannot significantly reduce emissions in the near term without cutting throughput, which would limit fuel supply.

State timeline

Driving the allowance reduction is the state’s legally mandated climate trajectory. The mandates are bold, aggressive and, for some, unrealistic.

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Regardless, CARB is required to:

• Cut statewide GHG emissions by 40% below 1990 levels by 2030.

• Achieve economy-wide carbon neutrality (net zero) by 2045.

To meet those goals, CARB concluded the Cap-and-Invest market must be reduced to close out this decade. The agency’s proposal accelerates the allowance drawdown between 2027 and 2030 by removing 118.3 million tons of CO₂e over the next four years.

CARB officials, including Chairwoman Lauren Sanchez and former Chair Liane Randolph, have said the proposal is a “cost-effective” way to force emissions down while preserving a market-based compliance structure. However, they acknowledge a steeper reduction means higher prices.

Randolph was defiant during the legislative session last year when CARB came under fire for its Low Carbon Fuel Standard program, cost increases and President Donald Trump’s revocation of the state’s emission rules.

“Clean air efforts are under siege, putting the health of every American at risk,” she told reporters in August. “California is continuing to fight back and will not give up on cleaner air and better public health — we have a legal and moral obligation.”

The counterargument

While oil companies are railing against CARB’s proposal, environmental and climate policy groups argue it doesn’t go far enough. A letter from NextGen Policy and a coalition of clean energy organizations and nonprofits to CARB states the proposed removal of 118.3 million allowances is the “bare minimum.”

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They cite CARB’s analysis showing the state needs to remove up to 265 million allowances by 2030 to stay aligned with its climate neutrality pathway.

“This delay in emissions reductions limits the program’s impact as both a climate and affordability solution for California,” the letter reads. “As evidence, the most recent C&I (sic) auction in February only cleared at the floor price for the second time in less than a year. This weak outcome signals an oversupply of allowances and underscores the need for stronger, near-term ambition to reinforce the program’s stringency, integrity, and effectiveness.”

NextGen and others support a steep allowance reduction and also want CARB to tighten its natural gas and electricity crediting rules to reduce household energy bills during the summer months. They also urge CARB to:

• Re-evaluate free allowance allocations for energy-intensive industries.

• Align allocations with updated emissions leakage risk assessments.

• Expand climate credits for electricity customers.

NextGen and others believe further reductions will strengthen market stability, increase climate ambition and drive more rapid adoption of zero-emission technologies.

Newsom and CARB have been steadfast that maintaining the compliance costs are necessary to keep California on track to meet its 2045 targets. They dismiss the long-term industry claims of price shocks as those have historically failed to match reality and the green energy transition, though challenging, will deliver cleaner air and more stable energy markets.

To ease near-term prices, Newsom has ordered regulators to fast-track authorization of E15 gas (15% ethanol), a higher ethanol blend used in much of the country. The state’s models suggest E15 could lower fuel prices by about 20 cents per gallon and save Californians an estimated $2.7 billion per year once fully deployed.

Newsom signed Assembly Bill 30, authored by Assemblyman David Alvarez (D-San Diego), on Oct. 2, 2025, which he promoted as a cost-cutting strategy. He said studies showed it could “lower gasoline prices” and save residents money.

Newsom said cutting red tape and authorizing E15 would help avoid severe price spikes the state has experienced in recent years by diversifying the fuel supply and reducing reliance on petroleum.

“Thanks to our work with the legislature, we have averted billions of dollars in higher costs at the pump by avoiding the kinds of severe gasoline price spikes we saw a few years ago,” Newsom said in a press release last year. “While we continue the critical work to stabilize our state’s fuel market, we’re cutting red tape to provide consumers with more options as we continue our transition to cleaner transportation.”

While E15 is legal on paper, the state cannot deploy it at scale until fueling infrastructure is certified for E15 use. CARB’s most recent implementation documents state, “currently, there are no components certified as E15 compatible.”

Multiple state agencies, such as the State Water Board, Cal/OSHA and the State Fire Marshal, must each approve equipment before CARB can issue the executive orders required for retail use. CARB must also complete the state-mandated Multimedia Evaluation, a two- to five-year scientific review period required before adopting a permanent fuel specification, although AB 30 allows E15 sales in the meantime.

CARB states the blends of gas containing 10.5% to 15% ethanol may now be legally sold, but must meet all applicable local, state and federal requirements. Hardware certification and the California Environmental Policy Council reviews are in progress, per reports.

The state has not announced any official timelines or estimates for operational readiness for when E15 will be widely available.

Note: Part 2 will focus on the political battle and burgeoning bipartisan pushback. Part 3 will focus on California as a fuel island, pipelines, capacity and more.

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SAN DIEGO — The San Diego Association of Governments Board of Directors voted unanimously to end a years-long saga of technical failures and financial mismanagement by approving a new partnership to operate the “nerve center” of the county’s toll roads.

SANDAG will enter into a $15.8 million cooperative agreement with the Transportation Corridor Agency (TCA) in Orange County to provide a new back-office system (BOS) for the Interstate 15 Express Lanes and the South Bay Expressway (SR 125), according to Chief Executive Officer Mario Orso. He said the new system will increase efficiency, reduce operating costs, and rebuild public trust.

The decision marks the final step in a three-part stabilization plan designed to restore public trust following the collapse of a previous $28 million contract with Deloitte and A to B. Officials said the move would lower the average cost of processing toll transactions while leveraging a proven system already in use by neighboring agencies.

“It’s no secret that we have had our share of challenges as an organization to do a back office ourselves,” Orso explained. “When we looked at best practices, we said, ‘Why aren’t we doing it like a big chunk of operators in the state?’”

The new system is expected to be operational in the spring of 2027 and replace the current ETAN Technologies system, which was never properly implemented and was the subject of a $4.2 million whistleblower lawsuit by former SANDAG Finance Director Lauren Warrem.

Additionally, the ETAN system overcharged and undercharged customers, the back-office system couldn’t reconcile accounts, and some staff failed to disclose those issues for years to the board.

The TCA contract allows for SANDAG to leverage a proven system rather than build its own, Orso said. Currently, TCA operates on SR 73, 133, 241, and 261, along with a cooperative agreement with the San Bernardino County Transportation Authority as a processing partner for the SBCTA’s express lanes on I-10.

TCA’s system comes with more than 300 “logics,” which refers to the business and decision rules, workflows, and processing logic governing how transactions are interpreted, rated, billed, and enforced.

Orso, Alex Estrella, SANDAG’s acting transportation director, and Naomi Young, the agency’s principal economist, said the 300 logics won’t be implemented at once, but rather phased in over time as SANDAG determines which are needed. For example, Orso said elements that could be turned on include discounts, more in-depth internal reports, and DMV holds, among many others.

Young said the agency’s due diligence concluded it would be best and more cost-effective to hire TCA instead of “reinventing the wheel.” The agreement shifts to a “pay-as-you-go” model, with SANDAG using TCA’s software as its nerve center. SANDAG remains the toll authority, setting its own toll rates and maintaining its own customer service center.

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The transition will involve migrating critical data for active accounts from the past three years. It will not initially include uncollected fees or older violations stemming from the ETAN system, although it will be addressed in a future board item, Orso said.

“When we started assessing this option … we sat down with TCA and went over the business roles (logics),” Estrella said. “One I highlighted during the meeting was their violation process is really efficient. They also have a DMV hold logic in place that we can leverage. When they developed their system, this is all they do: they are bringing the most current logical business roles into their practice, and we want to leverage that.”

The financial structure of the deal was scrutinized during the meeting. Young, in a subsequent interview, detailed a net effect of savings despite an increase in annual operating expenses.

She said the agency originally budgeted $12.5 million on foundational work and payments to Deloitte, while SANDAG will reallocate the remaining $21 million toward the TCA partnership.

The implementation is expected to cost $15.8 million, which includes:

• A $7 million one-time implementation fee to TCA.

• $6.8 million for staff and consultant support.

• $2 million for a contingency buffer.

On the operational side, SANDAG will pay TCA an annual service fee of $1.2 million starting in Fiscal Year 2027.

However, Young said the overall cost per transaction is projected to fall from $1.81 to $1.73, and the agency expects a larger buffer to cover unanticipated risks and maintenance costs. She said roughly half of SANDAG’s toll costs are fixed and unaffected by the new agreement.

“We looked at how the TCA agreement affects our specific operating costs where it replaces certain vendors,” she said. “We also looked at what it does on our capital project side, which is where you’d see the ETAN component. The TCA agreement is actually replacing some of the things we currently contract, and that’s where we looked at the analysis and how it affects our operating costs.”

Orso said the new system brings a more efficient workflow and streamlined process, which will like see costs come down “if the revenues are static.” He said those efficiencies will help automate certain elements, lower labor costs, and improve collection efforts, among others.

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The trio said the new system is critical for the future of the agency, especially regarding its 2025 Regional Transportation Plan, which proposes about 700 miles of managed lanes (tolls) across the county, along with rebuilding public trust.

To guide these regional shifts, SANDAG officials are looking to the Orange County Transportation Authority (OCTA) as a primary model for managed lane success. Kirk Avila, general manager of OCTA’s Express Lanes programs, presented the board with data from the recently completed $2 billion I-405 Express Lanes project, which utilized a combination of local “Measure M” sales tax and federal TIFIA loans.

The results in Orange County provided a powerful case study for San Diego. Since the 405 express lanes opened in December 2023, travel times have decreased. Northbound commuters in the express lanes saved 22 minutes, while those in the general-purpose lanes, who paid no toll, saw a 12-minute improvement. Avila noted that these gains were achieved even as the corridor saw a 20% increase in total traffic volume.

Avila emphasized that maintaining public trust required “unprecedented” transparency, including approximately 600 community meetings held during the 405 construction phase. He urged SANDAG to adopt a disciplined, “business-like” approach to tolling that prioritizes reinvestment.

“You have to have policies in place to know if there are funds, where those funds are being generated, where those monies are being expensed, and if there are monies left over, where those monies are going to be invested back into the community,” Avila said.

He highlighted that over the last 23 years, OCTA has reinvested more than $2 billion in excess toll revenue back into the SR 91 corridor for projects such as bridge improvements and the addition of general-purpose lanes.

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Note: The audio podcast was generated through Google Notebook LM. Sources include the California Attorney General and Legislative Analyst offices, Assemblyman Carl DeMaio, opposition groups, peer-reviewed studies, Politico, Fox News and media reports.

SACRAMENTO — Supporters of a proposed state constitutional amendment to require voter identification in California submitted 1.35 million signatures to the Secretary of State on Monday.

Assemblyman Carl DeMaio (R-San Diego), who also heads the conservative Reform California, announced the milestone during a press conference, saying the measure has broad bipartisan support and will bring trust to state elections. California has long resisted voter ID requirements, but now the submission triggers a county-by-county verification process, which must be completed by May for the measure to qualify for the November ballot.

Opponents, though, sharply and quickly dispute many of DeMaio’s claims and the underlying premise of the campaign. They argue voter ID laws suppress participation, especially among minority populations. Voting rights groups such as the American Civil Liberties Union of Northern California, the League of Women Voters of California and others, say the measure would expose sensitive voter data, increase ballot rejection rates and disproportionately burden voters of color, seniors, low-income residents and people who move.

“Divisive politicians with partisan agendas will try to politicize this effort, but the fact remains that over 70 percent of voters, including a majority of Democrat voters, support the initiative, and nearly half of the 1.35 million signatures we collected came from Democrats and Independents,” DeMaio said. “We look forward to expanding this bipartisan reform movement as we enter the passage phase of the campaign.”

The measure

DeMaio, Reform California, Sen. Tony Strickland (R-Huntington Beach), and Donald DiCostanzo of Californians for Voter ID began the signature collection drive on Oct. 1, 2025, and it was powered by more than 18,000 volunteers, he said. The effort requires 874,641 verified signatures to qualify.

The proposed ballot language includes the following:

• Require voters casting ballots in person to present government-issued photo identification.

• Require voters using vote-by-mail ballots to provide the last four digits of a government-issued ID number that matches their voter registration record.

• Mandate election officials use government data to verify the citizenship of registered voters.

• Require annual reporting on the percentage of voter rolls verified for citizenship in each county.

• Require the state to provide free voter ID cards upon request.

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ENCINITAS — A politically charged battle over Santa Fe Drive ended Wednesd…

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OCEANSIDE — A proposal in Sacramento could send the Coaster to the doorstep of Disneyland, leaving North County Transit District officials stunned on Thursday.

The idea was briefly mentioned during the North County Transit District’s Performance, Administration and Finance Committee meeting. NCTD Board Vice President Mike Sannella of San Marcos said the proposal was met cautiously by some on the board, as there are few details and no draft bill to review.

Even so, early conversations raised alarm bells about cost, operations, and the possibility of the district being pulled into an unfunded mandate to run trains into Orange County. Sannella said there are significant concerns and would like to see an analysis, while there is potential upside if the mandate is funded and NCTD can acquire new customers in Orange County.

However, NCTD Chief of Staff Mary Dover said several years ago, the agency and Metrolink began discussions regarding operating within both territories. However, it was predicated on the necessity for additional funding and required infrastructure expansion.

NCTD has not been advised or received any new funding mechanisms that would support this change, and they are focused on maintaining their current services.

“NCTD is currently working to ensure that our local services are the priority for North County communities,” she explained. “With our Breeze bus service and Spriner hybrid rail carrying the majority of our ridership, we must focus on that first. While we certainly appreciate that there is a desire to see more services north, unfunded mandates (in any form) create an imbalance in the services we can provide. We have already experienced the impacts of such mandates, related to the cost of fuel and equipment, as we have transitioned to zero-emission vehicles.”

Blakespear is the current chair of the Senate Transportation Subcommittee on LOSSAN Corridor Resiliency. The Los Angeles-San Diego-San Luis Obispo corridor is the second-busiest in the country. She did not respond to questions by deadline.

NCTD’s Annual Comprehensive Financial Reports (ACFRs) and Fiscal Year 2025-26 operating budget show the agency’s current revenue is just enough to sustain existing operations, let alone entertain a complex multijurisdictional service expansion, which likely comes with a hefty price tag.

“Creating unfunded legislation without the necessary studies done for NCTD to operate outside of its service area has the potential financially to impact our core services for our communities,” Sannella said. “Our partners at Amtrak and Metrolink do an amazing job of connecting people throughout the LOSSAN corridor and to our services here in North County.”

Core obligations

Across the district’s five modes of transportation, NCTD has seen slow but steady growth in ridership since the pandemic. In Fiscal Year 2023-24, there were 7.7 million passengers, 8.5 million in FY 24-25, and a projected 9 million for FY25-26, according to NCTD’s budget.

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However, farebox recovery was just 7.1% in FY 23-24, while last year’s data has yet to be released. Regardless, the most significant cost drivers for the upcoming year are employees’ wages and benefits, contracted professionals and fuel costs, the budget reads. Next year, the agency will absorb bus operations as it terminates a contract with an independent operator, Sannella said. NCTD’s employee count will grow from 420.75 to 878.

Meanwhile, the agency manages some of the most challenging rail geography in the state, including the Del Mar Bluffs. The San Diego Association of Governments, along with NCTD, has engaged in multiple bluff stabilization projects with the long-term goal of a multi-billion-dollar track realignment.

In 2024, NCTD outlined a five-year capital need of $585 million, which includes stabilization and a new Del Mar Fairgrounds station. About one-third of it is funded, although SANDAG plays a significant role in securing funds.

Much of NCTD’s operating budget is allocated to maintain a state of good repair, such as keeping rail equipment, tracks, signals, buses, and facilities functional and compliant, along with meeting agency-mandated reserve funds.

“Based on my knowledge of the budget situation, I don’t see where we’re going to be buying new trains,” Sannella added. “We’re going to be repurposing the trains we have now and taking them off routes they’re operating in San Diego to meet this requirement, if it actually comes to fruition. That’s the only possible way we could even try to do it.”

Next year’s budget, though, does include $48.4 million from Senate Bill 125, authored by Blakespear, to help with operations and capital projects. NCTD allocated $37.1 million for its capital projects.

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Dover said even if a bill were passed, NCTD would likely not have to buy new trains and coaches, but would face an increase in operational costs. She said it would be a necessity to have state funding for any northern expansion, as the agency cannot cover those costs.

Sannella, though, also had questions about how the finances would work. He said the budget is set and limited, so any expanded service may come at the expense of those in San Diego County.

Also, he said Anaheim is already covered by both Metrolink, the Southern California commuter rail system, and Amtrak’s Pacific Surfliner, the intercity route linking San Diego and Los Angeles. Sannella said it may be redundant for NCTD to join the party. Sannella said the news about the proposal left many in a confused and guessing state, as little has been revealed about how the mechanics and financial components would work, let alone forcing the agency to pivot to a new direction when it’s already trying to bolster the Sprinter.

“Amtrak does a wonderful job of providing service from San Diego to Anaheim, currently 26 per day,” NCTD Board President Priya Bhat-Patel of Carlsbad said. “In the event NCTD were to be allocated additional resources, such funding would be better utilized by expanding service on the SPRINTER or BREEZE as these services are relied upon by North County communities.”

The extension

It remains unclear how a Coaster extension to Anaheim would operate, including train frequency, equipment needs, or how service would fit into other agencies’ schedules. The 52-mile corridor between Oceanside and Anaheim runs across multiple jurisdictions: Metrolink and the Southern California Regional Rail Authority own the segment from the county line to Fullerton, while BNSF Railways, a private freight operator, owns the line through Anaheim.

NCTD owns the corridor south to San Diego and east (Sprinter line) to Escondido.

NCTD operates the Coaster, Sprinter, Breeze, Flex (on-demand fixed route), Lift (paratransit) and NCTD+ (on-demand microtransit). The Coaster runs from the Oceanside Transit Center to Santa Fe Depot in San Diego; the Sprinter operates from OTC to the Escondido Transit Center, while the buses and microtransit service North County.

While NCTD, SANDAG, and state partners are advancing double-tracking projects in San Diego County, Sannella said much of Orange County remains single-track, creating logistical challenges for all operators.

Any extension could trigger additional costs, including trackage-rights fees, dispatching charges, station access, and fees for yard or layover space. Based on peer agencies and industry standards, those costs could range from:

• $1 million to $4.9 million per year for trackage rights

• Up to $2 million for dispatching

• $200,000 and $1.6 million for station access

• $500,000 to $2 million for layover facilities

Should a new layover yard be needed and owned by NCTD, those construction estimates could run more than $10 million.

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Dover said any fees to other agencies for use would be dependent on the impact on Metrolink, Amtrak and BNSF.

“Because of our current agreements with our partners, something as small as adding an additional train could impact the schedules of all trains along the LOSSAN corridor,” she added. “We recently added an additional Amtrak train, which brought us to near full capacity on the San Diego Subdivision (NCTD), and given the constraints along the Orange County portion of the corridor, would almost certainly require services to be impacted. All of these are subject to contractual obligations that we have with our partners, as well as our responsibility as the Railroad of Record with the FRA and Surface Transportation Board.”

Regardless, Sannella said the current service to Anaheim already exists with Metrolink and the Surfliner. Also, he and others are curious as to what frequency the Coaster would be required to service Anaheim.

“A good example is how many times does she want the Coaster to run up to Anaheim a day?” Sannella asked. “Are we talking one time a day, six times a day? I know no one is going to let us go on their tracks for free. They are going to have to change their schedules for their trains.”

Rolling stock presents another expense. A new Coaster locomotive costs about $6 million, while each coach car costs $3 million to $4 million. Depending on service frequency, start-up costs could reach $60 million to $150 million, with no guarantees of a realistic return on investment. Ongoing service would likely require state subsidies.

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Editor’s note: This is a reported explanatory analysis. Unlike a straight news story that focuses on the basic facts of an event, this format examines data, context, and underlying factors to help readers understand the issue more deeply.

STATE — A bill extending California’s road user charge pilot program has ignited debate over whether the state’s gas-tax revenue is declining, a central claim behind the push to eventually charge drivers per mile.

Assembly Bill 1421 would continue the pilot through 2035 as the state conducts additional studies for a mileage-based fee, or RUC. Supporters, including legislative Democrats and environmental advocates, argue the shift is needed because electric vehicles are reducing gasoline demand and eroding funding for transportation infrastructure.

However, the numbers tell a different story. State tax records show gas-tax revenue hit a record $7.94 billion in Fiscal Year 2024-25, even as gasoline consumption has dropped by 2 billion gallons from FY 18-19 and EV sales surged. Rising revenue is driven by the state’s steadily increasing per-gallon excise tax and annual inflation adjustments adopted under Senate Bill 1 in 2017.

EVs currently account for about 7% of the state’s on-road vehicles, a small share compared to the 35.9 million total registered vehicles statewide.

What follows is an examination of the data behind the gas-tax system, how California ended up with its current tax structure, and under what conditions gas-tax revenue may actually decline.

Narrative vs. numbers

For years, the common claim has been gas-tax revenues are declining because drivers are switching to EVs and will no longer be able to fund transportation projects, according to Caltrans. Other common claims is a RUC treats all vehicles equitably, is a user-pay system, among others.

But the California Department of Tax and Fee Administration (CDTFA) data shows the opposite.

Drivers purchased 13.336 billion gallons of gas in FY 2024-25, down from the 15.3 billion seen in FY 18-19, the agency reported. Despite the decline, revenue increased because the state’s per-gallon excise tax increased faster than gas consumption fell.

In FY 2024-25, the excise tax, which was reformed and approved under Senate Bill 1 in 2017, reached 59.6 cents per gallon. In FY 2025-26, the tax is 61.2 cents.

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A review of CDTFA’s FY 24-25 fuel‑tax data shows:

• Gasoline excise‑tax revenue rose sharply after 2017 due to increases enacted under the Road Repair and Accountability Act (SB 1).

• Even as gasoline consumption declined from roughly 15.5 billion gallons to about 13.3 billion over the past decade.

• Annual revenue trends upward because of the tax rate.

• Diesel revenue, which also contributes to transportation funding, similarly grew, supported by strong freight activity and its own inflation-indexed rate adjustments.

In short, revenue equals the number of gallons multiplied by the tax rate.

California did hit a milestone recently, though, with EVs as the state surpassed 2.5 million zero-emission vehicle sales, according to the California Energy Commission. Quarterly new-car sales account for about 23% as of the end of 2025; however, the impacts of the Trump Administration’s elimination of federal tax credits have yet to be fully realized.

While sales have plateaued at 23%, with some analysts reporting sales at 18%, new-car sales are different than fleet share, the actual vehicles on the road.

DMV data shows about 35.98 million registered vehicles as of January 2025. EVs represent about 7%, while gas-powered vehicles account for 93%, a significant gap.

The political narrative in support of the RUC centers on the growth of EV sales, but increases or decreases in the gas tax respond to the makeup of the fleet. And it takes decades to change the composition of a fleet as vehicles typically last between 15 and 20 years, according to industry experts.

How the gas tax works

The history of California’s gas tax system also plays a massive role in where the state is today.

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In 2010, former Gov. Arnold Schwarzenegger was facing a budget crisis and a legal ruling preventing the state from diverting sales-tax revenue on gas to cover transportation debt, according to reports. So, Schwarzenegger signed the Fuel Tax Swap (ABX8-6 and SB 70), which did two things:

• Eliminated most of the sales tax on gas, a percentage-based tax fluctuating with fuel prices.

• Replaced it with a much higher per-gallon excise tax, designed to produce the same revenue as the previous tax.

The increase was significant as the sales tax was just 18 cents per gallon in 2009-10 and jumped to 35.3 cents in FY 2010-11, according to CDTFA records. The CDFTA (formerly the Board of Equalization) was required to adjust the new tax each year to keep it revenue-neutral compared to the sales tax.

However, an earthquake was coming in the form of SB 1, also known as the Road Repair and Accountability Act, which was adopted in 2017. SB 1 did the following:

• Added a 13.9-cent per-gallon excise tax increase in November 2017.

• Added a 20-cent per-gallon diesel excise increase.

• Added new transportation fees, such as for registration and vehicle value fees.

• Indexed the gas and diesel taxes to inflation, adjusting the rate every July 1 based on the California Consumer Price Index (CPI).

Before SB 1 was enacted, the gas tax was 27.8 cents per gallon, according to the CDTFA. After the bill was signed, the tax spiked 41.7 cents, where it remained for two years until a 6-cent increase in FY 2019-20.

Since the tax is tied to inflation and not consumption, revenues continue to increase every year. For example, gasoline consumption has fallen about 2% over the last several years, but the excise rate increases between 3% and 5% each year. Some experts say the gas tax is designed not to fail.

The rate is calculated by the following: New rate = Old rate (1+CPI percentage change).

Sales vs. fleet share

Forecasting outside five years is difficult, so the long-term future of gas-tax revenues is cloudy. Even though revenues are at record numbers, it could eventually face pressure from long-term EV trends.

One key element is the difference between EV sales and fleet share. Sales are the percentage of new vehicles sold, such as EVs. Those projections have cooled over the past five months after the federal tax credits were eliminated.

Analysts saw new sales between 18% and 23% for the fourth quarter of 2025, which is a decline from 25% earlier in the year and in 2024.

Fleet share, meanwhile, represents the share of all vehicles on the road. For EVs, it’s currently about 7%. Fleet turnover, though, is slow and methodical and isn’t guaranteed by legislative mandates from Gov. Gavin Newsom, as a host of factors contribute to the sale of a new or used vehicle.

Those mandates, though, have been eliminated by Congress, although Newsom is proposing a $200 million EV rebate in the FY 26-27 budget. However, his proposal also would require automakers to contribute a dollar-for-dollar match, CalMatters reported.

California transportation agencies base their gas‑tax “decline” warnings on the assumption that EV sales keep rising. If EV sales stop rising or decline, the fleet takes decades longer to flip, and the gas tax remains stable far longer than projected.

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Even modest declines in EV sales dramatically push out the timeline for any revenue drop. At today’s EV fleet share of about 7%, and with cars lasting 15 to 20 years, it takes roughly three decades of steady EV sales at 20% just to reach a 30% fleet share, the point where gas‑tax revenue begins to fall, according to an analysis by North County Pipeline. Those projections place the earliest revenue impact in the late 2050s or 2060s, not the 2030s often cited in public debate.

(Fleet turnover estimates in this story are derived by applying California’s current EV fleet share, DMV vehicle-registration totals, and an industry-standard 6% annual vehicle replacement rate. Projected timelines reflect mathematical extrapolation, not agency forecasts.)

Regardless, the projections show several scenarios:

• If EV sales hit 40% to 60% per year, the fleet transitions by the mid-2030s.

• If EV sales are stagnant at 20% per year, the earliest fleet share is likely 2058.

• If EV sales drop below 20% to 15% or 10%, the earliest fleet share would be in 2071 or 2090, respectively.

Moving parts

It’s possible the state can reach its ZEV mandates by 2035, although unlikely according to the projections and current data. The situation is fluid, and will remain so, as dozens of obstacles can impact the required adoption rates of EVs asked by the state.

Even though the Trump Administration killed those mandates, another administration may reinstate the mandates and tax credits. But that is, at minimum, three years away, and assuming Democrats take control of the White House and Congress.

However, other issues such as supply chains, access and cost of minerals and metals, labor costs, geopolitical concerns, the nation’s and state’s economies, cost of living, personal income, the cost of EVs (new and used), registration, insurance, automakers pulling back on production and investment, plus many more, will all play a role in meeting any mandate or expectation.

As for Newsom’s rebate, there’s no guarantee a vehicle will cost less upon purchase. First of all, his proposal has yet to include a specific per-vehicle rebate dollar amount.

Second, an automaker could increase the retail price by the rebate amount to avoid having to pay the dollar-for-dollar cost and avoid losing more money. For example, a $50,000 EV with a $5,000 rebate equals a $45,000 total price. But the manufacturer could increase the initial cost of the vehicle to $55,000 to offset the rebate and sell it at $50,000.

However, some automakers may absorb the rebate to retain or build market share. While the rebate program is unclear at this moment, it will take shape in the coming weeks and months.

As for the RUC, one of the main sticking points, other than charging residents to drive on roads they have already been taxed on, is whether it will add yet another cost to a gas-powered vehicle and owner who can’t afford an EV or doesn’t want an EV.

Or, and this seems obvious, what about applying a RUC to just EVs? Gas-powered vehicles already pay the excise tax, plus about 60 cents more in additional fees per gallon, while EVs only have registration fees.

Even more of an obvious question is, how do we know EVs will take over? With a finite amount of natural resources, rare-earth minerals, and other industries fighting over those, is the legislature certain there will be this mass adoption of EVs in the next 20 to 30 years, leading gas-powered vehicles toward the land of the Dodo?

Compounding the issue, many Californians are asking why the legislature and Newsom can’t put forward a balanced budget. Deficits are growing, and many residents can only take on so many new taxes before they decide to leave or are forced to take other drastic actions to ensure their survival.

Additionally, how does the state reconcile its own data, which, as of now, doesn’t support the claims of lost or declining gas-tax revenue? Also, since the future is uncertain, is a RUC the best path forward, especially since the cost of living is showing no signs of declining?

These are issues the legislature has yet to grapple with or address, at least publicly, even though it appears a RUC could be implemented by, or before, 2035, depending on how fast the pilot program moves. It is incumbent for a decision of this scale for the legislature to fully understand the scope of the issue to make the best decision for all Californians.

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STATE — California lawmakers advanced a bill Thursday to extend the state’s slow-moving experiment with a statewide road user charge, advancing a bill reflecting growing concern about the future of the state’s transportation funding.

Authored by Assemblywoman Lori Wilson (D-Suisun City), the bill does not create a mileage fee.

Instead, it extends the state’s pilot program, research efforts, and advisory work until 2035, preserving the option of a per-mile charge to replace declining gas-tax revenues that have funded California’s roads.

The vote was mostly along party lines. No Republicans supported the bill, while Democrats framed the extension as a pragmatic step to address a well-known dilemma: a decline in annual gas tax revenue, electric vehicle adoption and more fuel-efficient vehicles.

“AB 1421 asks a basic fairness question: How do we ensure all motorists pay their fair share, no more and no less?” Wilson told KSEE on Friday. “I am committed to amending AB 1421 in the Senate to explicitly direct the research to help understand and avoid situations where motorists could be double taxed.”

But the EV landscape has dramatically changed over the past five years, according to industry experts and automakers. EV adoption, once projected to surge, has instead slowed, and automakers have pulled back production after taking multibillion-dollar losses. Complicating matters further, the elimination of federal EV tax credits under President Donald Trump removed a key incentive that boosted California’s and the nation’s adoption rates.

The pilot program, meanwhile, runs through Caltrans and allows volunteers to simulate paying for a per-mile fee.

“When you add up the car tax, the gas tax, and this new mileage tax for a family with two cars, a working family with two parents driving, they would have to pay $4,200 a year to the state of California just for the privilege of driving on crappy roads,” Assemblyman Carl DeMaio (R-San Diego) said.

What the RUC means

As lawmakers debate the issue and funding shifts, the RUC is a per-mile fee, the same as the one proposed by SANDAG in its 2021 Regional Transportation Plan. The SANDAG RUC, though, was removed from the plan in 2023 after San Marcos Mayor Rebecca Jones led a contingent of other city leaders, along with public pressure, to abandon the charge.

The state program is only a pilot — a limited opt-in test to gather data. AB 1421 extends the program and requests statewide research. However, the program in 2017 had 5,000 participants and analyzed more than 37 million miles driven.

The pilot tested multiple reporting options, such as odometer reading, plug-in mileage reporting devices, smartphone GPS apps, third-party account managers and non-GPS options. It also tested charging concepts, such as a per-mile rate, a road-type-based fee (state highway or all public roads), and public versus private roads.

“There’s a lot of questions still in terms of how this will play out in an urban area versus a rural area,” Mike Woodman, executive director of the Nevada County Transportation Committee, told KNCO in September 2025. In the end, he said the pilot was “inconclusive.”

Critics say the bill signals the supermajority in the legislature will eventually pass the law. Some have argued the state should rein in spending first, address its growing budget deficit projections, while others, such as DeMaio and others, say the RUC amounts to double taxation, as there is no discussion of an EV-only charge for driving.

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Privacy advocates also worry about the state government tracking drivers and the data systems required to execute the RUC.

Supporters, though, say those concerns are premature and emphasized the purpose of the pilot is to understand what will or won’t work.

A model on a shrinking foundation

California’s transportation system is funded largely by gas taxes and fees, which are more than $1.20 per gallon, according to state data and transportation experts. As cars get more fuel-efficient and EVs gain share, gas-tax revenue erodes, prompting the state to launch the RUC pilot in 2014.

The goal has been to identify a stable, long-term revenue stream to backfill gas-tax losses. The Legislative Analyst’s Office (LAO had warned for years that with automatic increases to the excise tax, inflation and changing driving habits gas tax’s buying power.

The LAO projected a 64% decline in fuel-tax revenue and 31% in overall transportation revenue, according to AB 1421. According to state records and the Fair Transportation Funding Coalition, fuel taxes generate about $14 billion per year, with $7.8 billion from the gas tax.

“Reducing fuel consumption could mean a projected drop in gas and diesel tax revenues that support road maintenance and public transportation by over $4 billion annually in the next decade,” the ClimatePlan Network said in a release. “Designed properly, the creation of a Road Charge (sic) presents a rare opportunity to rebalance our transportation system and help achieve critical environmental and social goals set by the state. Equity and affordability must also be embedded in the design and implementation of a Road Charge. (sic)”

However, the losses in gas taxes have plateaued over the last two years, according to the state and industry experts.

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However, the state RUC program doesn’t separate gas-powered and electric vehicles. In theory, those driving gas-powered vehicles could pay the RUC and gas taxes, while EVs only pay the RUC.

It’s a possible double charge and is the core concern for opponents, and it vexed the San Diego Association of Governments during the regional RUC debate several years ago. While SANDAG executives and the Board of Directors discussed an EV-only RUC, it was never written into the plan.

The EV surge, slip

For years, California led the nation in EV adoption with companies like Tesla exploding and others racing to ramp up production. State leaders predicted accelerating growth and relied on those expectations when passing climate-based legislation and long-range predictions.

But the EV market has radically changed over the past four years, and the picture has shifted:

• EVs accounted for 25.3% of new car sales in California in 2023 and early 2024, according to Veloz and the California Energy Commission.

• By the end of 2024 and into early 2025, new sales dropped to about 23% based on the 2025 first quarter reports.

• In Q2 2025, EVs represented just 21.6% of new car sales, according to E&E News’ analysis of state data.

• The California New Car Dealers Association reported EV registrations dropping to just 18.2% in the same period.

“The sales are declining,” Orange County car dealer owner David Simpson told CalMatters. “We’ve filled that gap of people who want those cars — and now they have them — and we’re not seeing a big, huge demand. I don’t see households going 100% EV.”

Analysts say the state has largely captured early adopters, such as tech-savvy, climate-motivated, or higher-income earners willing to navigate changing gaps and higher prices.

Automakers have reacted:

• Ford reports more than $16 billion in losses in its EV division since 2022.

• Ford has paused development on several EV models.

• Toyota leaders call the state’s accelerated timeline “unrealistic.”

• Several foreign automakers have reallocated investments into hybrids and rental car companies and are unloading EV fleets due to maintenance and depreciation costs, according to industry reports.

Another headwind is the elimination of federal EV tax credits under President Trump. Those credits offered up to $7,500 for new EVs, $4,000 for used, and up to $40,000 for commercial fleet vehicles, according to reports.

“The question is whether consumers accelerated their purchase timelines to capture expiring benefits,” according to Anthony Puhl of Jato Dynamics, an automotive market research firm. “In other words, did buyers and lessees move forward purchases they were already planning, pulling them into Q3 to take advantage of tax credits and manufacturer discounts before they disappeared? Or is this the start of something more fundamental?”

Industry analysts point to the combination of flat sales, uncertain incentives, and automaker pullbacks as producing a more complex adoption curve, and one less predictable than what California’s regulatory framework assumed.

Volatility ahead

Fuel-tax forecasts have grown more volatile, making long-term planning more difficult for the state. Each new analysis, from automakers, researchers, or federal agencies, offers different estimates of how quickly drivers will shift away from gas-powered vehicles.

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When projects vary wildly year to year, it is more difficult to predict how much revenue California will actually collect. The volatility throws a wrench into long-term infrastructure and road planning and funding, analysts noted.

Some forecasts suggest EV adoption will rebound as prices fall and charging improves, while others suggest California may be entering a slower phase of adoption lasting years.

The state, though, assumes a rapid ascent of adoption and passed the Advanced Clean Cars II program, with the following goals:

• 35% of new car sales must be zero-emissions by 2026

• 68% by 2030

• 100% by 2035

Trump, though, rescinded California’s authority to enforce its 100% ZEV and heavy trucks mandate for 2035 when Congress rescinded California’s waiver under the Clean Air Act in 2025. The state had used its waiver to set aggressive climate goals and restrictions on gas-powered vehicles, essentially setting the benchmark for the rest of the country since automakers had to comply to sell in the nation’s largest market.

While California appears on track to miss its 35% target, there is a caveat. Each manufacturer’s sales of 2026 ZEV must be 35% of its total sales averaged for model years 2022-24, CalMatters reported. Only Tesla is on track to meet the 35% mandate.

Manufacturers can be fined $20,000 per noncompliant vehicle or be required to restrict inventory if they miss state targets, EV Magazine reported, which would likely lead to higher prices, Brian Maas, president of the California New Car Dealers Association, told the outlet.

“We’re just not going to make the mandate as presently drafted,” he said. “The most rational is to constrain inventory. The data don’t lie. The demand doesn’t match what the mandate requires.”

State Dems remain confident

Despite a weaker market, state officials say the state is not backing down. Many argue even if EV adoption has decreased, longer-term trends remain in the state’s favor.

Some of those are the 2.5 million ZEVs sold in the state since 2011, and adoption will ramp up with advances in technology and affordability. The state has also built its own incentive program, as Gov. Gavin Newsom proposed a $200 million in EV rebates on Jan. 9 as part of his budget to counteract the federal cuts. CalMatters and others report it may not go into effect until 2027.

At the World Economic Forum in Davos, Switzerland, Newsom touted ZEV sales in the fourth quarter of 2025 as residents bought 79,066 vehicles. Despite the downward trend, Newsom said the market is resilient and reflects a turning point.

“California didn’t reach 2.5 million (since 2011) zero-emission vehicles by accident — we invested in this future when others said it was impossible,” he said in a statement. “While Washington now cedes the global clean vehicle market to China, California is ensuring American workers and manufacturers can compete and win in the industries that will define this century.”

Even the European Commission is reconsidering its full ZEV transition timeline, according to Wired.

California Air Resources Board officials have said the state remains committed to its 2035 goal, and short-term fluctuations do not change the long-term direction of the global auto industry.

Critics, though, say those statements brush aside the scale of the challenge.

Republican lawmakers argue the state’s mandates are out of step with consumer demand, and EV requirements could raise car prices in an already expensive state. Some warn that EV rules and the RUC, it will lead to a future with higher driving costs.

“Democrats just voted to keep the door open for a mileage tax on drivers,” Assemblywoman Kate Sanchez (R-Rancho Santa Margarita) said. “That means taxing your commute, your kids’ activities, your life. Hard no. Drivers aren’t ATMs.”

Auto dealers have expressed concern that EVs are sitting on lots longer than expected and that pushing manufacturers to accelerate electrification may backfire. Industry analysts say that unless the nation restores some kind of federal incentive structure, California may struggle to sustain the pace its own rules require.

Local voting breakdown

Yes — Tasha Boerner (D-Encinitas), David Alvarez (D-San Diego), Chris Ward (D-San Diego), LaShae Sharp-Collins (D-La Mesa).

No — Carl DeMaio (R-San Diego), Laurie Davies (R-Laguna Niguel)

No vote recorded — Darshana Patel (D-San Diego)

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ESCONDIDO — As the Escondido Creek Conservancy celebrates its 35^th anniversary, the nonprofit is launching its most ambitious fundraising campaign yet, a $1 million dollar-for-dollar match to protect and expand local habitats.

The conservancy, which now owns 3,500 acres across the Escondido watershed, received the matching donation from an anonymous benefactor and is determined to maximize the opportunity, said Sheri Lees, the conservancy’s marketing director. Lees and Executive Director Ann Van Leer hope the campaign will broaden community engagement and donor support over the next year.

The conservancy’s reach spans the Escondido Watershed, which runs from Bear Valley above Lake Wohlford east of Escondido to Cardiff and Solana Beach as the Escondido Creek funnels into the San Elijo Lagoon.

“That would be the biggest gift we’ve received ever and the most money we’re raising,” Lees added. “It would truly be transformational for the organization and for conservation for the region. It’s an ambitious goal, but I think we can do it if we all work together.”

The conservancy was founded in 1991, and three of the founding members are still on the Board of Directors. The conservancy was founded to protect and conserve land, along with plant life, animals, and the watershed, Van Leer said.

The first piece of land was the Bumann parcel in Encinitas, and it slowly spread from there. As the nonprofit grew, so did its portfolio, along with expanding programs, volunteer programs, and other events to engage residents, Lees said.

The conservancy’s land has grown to include 11 areas they own and manage, including adding two pieces late last year — the White-Atterbury and Elfin Acres. Those two accounted for 256 acres in a $7 million acquisition, North County Pipeline reported in December.

But now, the conservancy is reaching new heights thanks to the anonymous donor, its offerings, and more acquisitions.

Van Leer said one of the challenges is connecting each property. She said the conservancy has been solidifying many of those connections, which in turn provide plant and wildlife corridors. Those corridors help provide safe passage, robust populations and help sustain healthy ecosystems.

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“I tease my colleagues by telling them our deer don’t stop at the end of the watershed,” Van Leer said. “Our mountain lions don’t know anything about these fake rules we’re making up. They’re moving around. A lot has been chopped up and cut off, and they’re struggling a bit.”

As for this year’s campaign, there are many elements not only for allocating the funds, but also for outreach. Van Leer said plans are in place to speak at city council meetings, connect with community organizations, service clubs, media, and others, to spread the word and introduce themselves to new people and organizations.

Lees said they are still working on the funding priorities, but there are many opportunities. She said one is renovating an older building at their headquarters in Mountain Meadow into a research station, expanding the narrow road, land acquisitions and others.

But there are challenges with buying property for conservation, Van Leer said.

“You have to have a chunk of money, not necessarily to buy it, but to leverage it for grants and other things,” she explained. “We put that on the list. There are many things we want to do, but sometimes the money doesn’t align. It doesn’t mean it that it’s not important, but were always trying to figure out how to make the pieces align. So, if we had a little extra … then we can move some of these other things forward.”

Despite those financial hurdles, the conservancy does have its sights set on new projects. One of those, Lees said, is a turtle project.

In 2023, Preserve Manager Donna Leon discovered a second population of the native southwestern pond turtle, and a 2024 habitat suitability study over six miles of the creek found a third population.

As the turtle’s habitat shrinks, Lees said the conservancy will repurpose a former water holding area. Currently, it is lined with concrete, but plans are to rip out the concrete, build a pond, and landscape the area to provide a breeding area for the turtles.

“We’re building out the pond so we can hopefully preserve the eggs and babies and repopulate the southwestern pond turtle,” Lees said. “We found various populations … along the Escondido Creek and, with partners, UC Irvine and UCSD, have come and done research and said the Escondido Creek is viable to reinvigorate the turtle population.”

Additionally, the conservancy’s events include the monthly Shrub Club, where volunteers go to a specific area and remove invasive species, plant native ones, clean up and more. There is the Conservation Conversation lecture series with one each quarter at the Elfin Forest Interpretive Center. Also, there is the Connect to Nature: Yoga + Guided Hike, where people come for yoga and about a one-mile hike around Mountain Meadows, Lees said.

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As for the kids, Ariel Reed, the education director, oversees a robust calendar for students from elementary to high school. Those include field trips in the watershed, a schoolyard safari after-school initiative, Trout in the Classroom, a high school restoration program and summer tribal youth programs.

A multi-month classroom and field-based program where students raise trout eggs, monitor water quality, and learn about freshwater ecosystems and endangered species in collaboration with the California Department of Fish and Wildlife, Reed said. The conservancy acts as sponsors to the classrooms as their teachers implement most of the program at school. We provide equipment, support, and funding for classroom lessons and field trips.

“Students care for living organisms over time, strengthening connections between science, conservation, and local water issues that affect the broader community,” Reed explained. “The atmosphere is focused and meaningful. Students take pride in daily monitoring tasks and show strong emotional investment, particularly during trout release events, which often become memorable milestones in their academic experience.”

Upcoming events

• Welcome to the Watershed: Feb. 7 at Franks Peak Trail

• Connect to Nature: Feb. 13

• Shrub Club: Feb. 21

• Conservation Conversations: April 16

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CARLSBAD — A Carlsbad teenager’s fight for life came down to a single day in November she underwent a 12-hour surgery giving her a new kidney, liver and outlook on life.

Grace Latasa underwent the rare double transplant Nov. 21 at UCLA after years of battling a rare genetic disease. Now recovering at home, the 15-year-old Carlsbad High School sophomore is focused on rebuilding her strength while inspiring others with her resilience.

The operation was grueling. Surgeons worked for hours as Grace’s parents, Nicole and Nicasio, and her younger brother, Orion, waited anxiously for updates. Each time a doctor appeared with “no news,” it was a relief because in a surgery this complex, no news meant no complications.

When the procedure finally ended, the family learned Grace’s new organs showed no signs of rejection. It was the moment they had waited for since her diagnosis as a newborn.

Still, Grace is under heavy medication to ensure her new organs stay healthy and rebuild her immune system. She has been out of school since the surgery, but is taking online courses until she gets the all clear from her doctors that her immune system is healthy, strong, and can withstand interactions with large crowds in proximity to her.

But for now, it’s back to COVID-era distancing rules for Grace.

“The first week, I was kind of comfortable because I was lethargic and the pain meds came through,” Grace said. “The second week was kind of tough. I didn’t feel too much pain. There were one or two days when the pain got noticeably bad. Right now, I feel pretty good. I think I’m slowly going insane from being cooped up in the house, but physically I feel great.”

Grace has become an inspiration to many, an attribute she never intended but has come to embrace. The humble teenager said she didn’t see herself as an inspiration but has come around to taking on a role to be a positive model for her friends, family and others in her sphere.

For example, even though she endured hundreds of doctor visits and hospital stays over the past 15 years, Grace never let her condition impede her ambitions, hobbies, school and social life. She battled through the tough times, celebrated the good ones, and, as her father said, lived life to its fullest.

Grace, though, found her own inspiration. She said show choir and musical theater are two of her greatest motivators to recover as quickly as possible, to not fall into depths, and is a passion to keep her looking forward through all of her difficult times. She said it has kept her mentally strong and passionate about life through the whole process.

“Her spirit is infectious and unstoppable,” Nicasio added.

A long road

Fifteen years ago, the Latasa’s welcomed their first child into the world, but one month later, they noticed Grace was projectile vomiting, and Nicole mentioned it to their pediatrician, Nicaso said. After a brief examination, the doctor noticed Grace had enlarged kidneys.

Doctors at Rady Children’s Hospital diagnosed Grace with autosomal recessive polycystic kidney disease (ARPKD), a rare genetic disorder. She spent one month in the neonatal intensive care unit (NICU) with high blood pressure and a swollen heart.

“When she was diagnosed, they told us she would need a transplant by the time she was 4,” recalled Nicole, 45, a special education teacher at Buena Vista Elementary School. “Sometimes it affects the liver, but it was too early to say. They recommended they take her kidney out when she was one year old. We got a second opinion (at UCLA), and they said do not touch her kidneys because they were functioning well enough, but they were just large and taking up room in her stomach.”

ARPKD is a genetic disease that causes cysts to enlarge the kidneys and impair their function over time, according to the PKD Foundation. Over time, symptoms include high blood pressure, abdominal pain and eventually kidney failure. Roughly one in 20,000 children is diagnosed with ARPKD.

The Latasas, though, were shocked at the diagnosis. Keeping as calm as possible, the couple forged ahead with stabilizing Grace’s disease. The foundation reports an 80% survival rate for the newborn stage, but the Latasas took no chances.

“She was born a healthy child, everything’s great, and we take her for a check-up, and they find something that’s not going so great,” said Nicasio, 50, a teacher at South Oceanside Elementary School. “It’s heartbreaking and hard to do a lot of different things. As we realized this was something we could manage, we just had a lot of work to do, and she could live a healthy life.”

Still, the different opinions from doctors left the family dazed, but they followed the advice from the doctors at UCLA. Her heart issues subsided when she was five, but in the years before, there were dozens of doctor visits to check her heart and kidneys.

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As time passed, the Latasas had to adapt to Grace’s reality, constantly checking about possible illnesses in the house, at school, or work to ensure the most stable environment.

Nicasio said when Grace was in seventh grade, her disease began to ramp up. Grace’s liver began to fail, which pushed the need for the transplant, Nicole said.

Bacteria began piling up in her liver and soon took precedence over the kidneys, he said.

Life until surgery

One challenge was Rady Children’s Hospital had never housed a kidney-liver double transplant, so Grace’s doctors recommended finding another hospital specializing in the surgery. Nicasio said Stanford, Berkeley, and UCLA were the top considerations, but UCLA was the closest.

He said a new round of workups, bloodwork and other tests were conducted to put Grace on the transplant list in October 2023. Part of Grace’s tests was to establish markers on the MELD (model for End-Stage Liver Disease) scale up to 40. She was around 20, so it became a waiting game, Nicasio said.

She endured a bout of pancreatitis and elevated phosphorus levels, which pushed her higher up the scale, where she would remain until summer 2025. In the summer, Grace got the call from UCLA to pack her bags as a donor was found.

This was it, until it wasn’t.

“They ended up splitting the liver for two children, and we were the backup recipient,” Nicole said.

Nicasio said it was bittersweet, but in the end, the family was happy that two other kids were saved because of the liver. Grace, though, would wait and power through until the fateful night in November.

She said her focus remained on school and performing as much as she could. But when the call came, she would be ready, Grace added.

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The call

On Nov. 21, Nicole took a call from UCLA, and this was it. She hustled over the CHS, pulled Grace from rehearsal, went home, and Grace, Nicole and Nicasio raced up to UCLA. Orion, though, stayed in Carlsbad with family, like Nicasio’s brother, Rico, their mother, and Nicole’s parents.

When asked about his thoughts and feelings, Orion struggled to express those emotions verbally. His face told the story of a loving brother who was scared his sister would die.

Orion’s eyes filled with tears as he recalled the day of the surgery, the terrifying fear racing through him as his sister lay in the operating room for 12 hours. He brushed aside the tears as his eyes darted from side to side, recalling his toughest day.

But in the back of his mind, the 10-year-old fifth grader at BVES knew his sister would make it.

“I knew it (the surgery) was going to happen sometime,” Orion explained. “I was just a little nervous for her because I would miss her a lot. I was just scared, but excited that she was going to get a new kidney and liver.”

His parents, meanwhile, sat in the waiting room filled with every emotion, pacing around, leaving to get coffee and wait for the doctors to emerge for an update.

Several times, one doctor would appear with “no news” to report. In this case, no news was great news as the variables, human error or rejection of the organs, would have fatal consequences.

Nicasio said the liver transplant took the longest, between eight and 8.5 hours, while the kidney surgery was about 3.5 hours. At one point, he and Nicole left to go eat and power up, then returned and sat outside just to get some fresh air.

“It’s like a movie is playing on the side of you and you can’t really see the screen,” he said. “Then all of a sudden these self-driving cars are coming by in Westwood, and you’re going, ‘Is this all really happening right now?’ We waited for so long.”

Once the surgery was finished, the Latasas were notified that Grace made it. Her new organs showed no signs of rejection, although she was far from being out of danger, Nicasio said.

Before the transplant, the family also discussed with Grace how the organs came to be, a sobering conversation as those organs are the result of another passing away.

Regardless, Grace was awake, the surgery took and the family could breathe.

The one hold-your-breath moment was that Grace’s kidney wasn’t functioning after surgery, Nicole said. She said it’s known as a “sleepy kidney,” which is caused by the body’s adjustment to the new organ and the effects of immunosuppressant medications. Soon after, though, the kidney began to function.

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Grace, meanwhile, was lethargic for days after the surgery and had fluid in her lungs, which is natural after the procedure, Nicole said. Grace’s medication regimen, though, consisted of 24 pills in the morning and 15 at night, but she is now down to 11 medications (17 in the morning and 12 in the evening.

She said she had a two-day period of intense pain the second week after the surgery, but was able to work through it. Grace said each week she feels stronger and will soon look to take on a part-time job walking dogs, or something similar, around her neighborhood to help her get back to full strength.

As a testament to her resolve, determination and passion for dance, Grace was back to practicing her choreography in the intensive care unit about one week after the surgery. She slowly went through her routine, as her body shimmied gingerly and a smile across her face.

Orion, meanwhile, said he’s thrilled his sister is on the mend and back at home.

“I’m just really happy that it all went well,” he added. “She’s going to be able to do all the stuff. You can’t even tell, looking at her, if you didn’t know. I’m just happy that she’s home.”

A genetic trait

Four years after Grace was born, the Latasas decided to have another child. At first, they were cautious because of their daughter’s condition, but they wanted to expand the family.

During Nicole’s pregnancy, she and Orion underwent genetic testing. The results showed Orion is a carrier but was not diagnosed with ARPKD.

“Girlfriends are getting screened,” Nicole said, laughing. “He has the gene code. If he were to marry someone else with the gene code, their offspring would have a 50% chance of getting it.”

Before Grace was born, Nicole and Nicasio didn’t know they had the gene code. So, when they decided to have Orion, there was a 25% chance he could be diagnosed, Nicasio said.

Nicasio said the family of three went to Bethesda, Maryland, and underwent testing to understand the gene code and potential risks with another pregnancy.

“That’s why they are five years apart,” he added. “We had a lot of discussions about the whole thing. We knew the gene codes, how to find them, everything.”

Now, Orion is all hustle and bustle as he’s found his own passion in catch-and-release fishing. Any spare second outside of school, he is down at his favorite fishing spot at Agua Hedionda Lagoon, Nicasio said.

Orion said he’s caught dozens of fish, but there has been one elusive species — the white sea bass. One day, he said, he will get the hook on and reel it in, but until then, he’ll take what he can get.

Nicasio said his son’s passion is more like an obsession. Orion’s free time is either fishing, watching videos, or spent going over his rod, reel, lines, and lures to make sure they are prepared for the next adventure.

Living life

Never one to miss out, as Grace grew older, she wanted to be a normal child. She was not allowed to play contact sports, but her parents did let her play soccer for several years in her younger years before it got too physical.

But her passion turned to the arts, specifically dance. She enrolled in a competitive dance program in Carlsbad but was turned off by the competitive environment, Grace said. But she was all-in with performing and soon found another path.

A friend told Grace about the show choir in middle school, so Grace jumped at the opportunity. She was able to perform (sing, act, dance), win competitions, and, most importantly for her, to have fun. Her dedication became a mindset as she would practice and rehearse as if she were a professional.

Even during her rough periods or extended hospital stays, once released, Grace would immediately go to rehearsal. It’s become such a passion that she plans to pursue a college degree in the arts.

“In sixth grade … there was three different activities you could do,” she added. “I ended up liking drama the best. One of my best friends was in the choir and said, ‘do you know there’s dancing in choir?” I said no, and I did it the next year and ended up falling in love with it.”

When not performing, her “second” home is the beach, Grace said. Hanging out with friends, enjoying the ocean view, surfing, and boogie boarding are just a few of her happy places.

She’s just a regular kid and wouldn’t have it any different.

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Update: The Ninth Circuit Court of Appeals granted a short-term administrative stay of the ruling but has not yet decided whether to grant a longer-term stay pending an appeal. It’s expected to rule on that next week. The plaintiff’s attorney, Paul Jonna, filed an opposition.

SAN DIEGO — A federal judge in San Diego has struck down California’s policy requiring teachers to keep a student’s gender identity confidential from parents, issuing a summary judgment and permanent injunction that could reshape school practices statewide and beyond.

The Dec. 22 ruling by U.S. District Court Roger Benitez found parents have a constitutional right to be informed if their child socially transitions at school and that teachers cannot be compelled to conceal such information. The decision also declared state policies unconstitutional, citing violations of the First (free speech) and Fourteenth (religious freedoms) amendments.

The case, which began in April 2023 when two (now former) Escondido Union School District teachers — Elizabeth Mirabelli and Lori West — sued over the district’s “gender secrecy” policy, has drawn national attention and ignited debate over parental rights, student privacy and protections for transgender students. California Attorney General Rob Bonta filed an appeal to the Ninth Circuit Court of Appeals on Dec. 29, arguing that disclosure without consent could cause irreparable harm to students.

“On Dec. 22, 2025, Thomas More Society achieved a historic victory in the case, ending California’s gender secrecy policies and restoring transparency and parental involvement in public education,” Mirabelli and West’s attorneys said in a statement. “The decision and federal court order issuing a class-wide permanent injunction — issued by Judge Benitez just days before Christmas — secures justice not only for Elizabeth and Lori but for all parents and teachers harmed by these policies statewide.”

The case has garnered national coverage and debate as to whether parents should be informed of their child’s situation or if a school district and state should wield such power.

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EUSD’s policy stems from the Assembly Bill 1955, the Support Academic Futures and Educators for Today’s Youth (SAFETY) Act, which was authored by Assemblyman Chris Ward (D-San Diego) and signed by Gov. Gavin Newsom in July 2024. The act explicitly prohibited school districts from adopting “forced outing” policies and rules requiring teachers to notify parents if a student requested a different name or pronouns at school.

Ward said in a press release the law was in response to school boards enacting “forced outing” policies, noting more than 12 school districts proposed or adopted policies requiring teachers to notify parents if their child identifies as transgender, use a different name or pronouns while at school.

“We believe that the district court misapplied the law and that the decision will ultimately be reversed on appeal,” Bonta said after the ruling. “We are committed to securing school environments that allow transgender students to safely participate as their authentic selves while recognizing the important role that parents play in students’ lives.”

Mirabelli and West, who are both Christian, felt the so-called “parental exclusion policies” were forced to “perpetuate a deeply immoral scheme of deception against parents with children who suffer from gender dysphoria,” according to their legal team at the Thomas More Society.

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In September 2023, Benitez issued a preliminary injunction, and in 2024, TMS included Bonta as a defendant. Bonta issued a legal alert claiming the injunction had no effect and sued schools that did not enforce AB 1955.

In August 2024, Mirabelli and West’s attorneys expanded the litigation into a class-action lawsuit and sought “class-wide protection” for parents, teachers and school districts. On July 17, 2025, the attorneys filed a motion for summary judgment, among others.

“We loved our jobs, our students, and the school communities we served,” Mirabelli and West said in a joint statement. “But we were forced into an impossible position when school officials demanded that we lie to parents — violating not only our faith, but also the trust that must exist between teachers and families. No educator should ever be placed in that situation. This victory is not just ours. It is a win for honesty, transparency, and the fundamental rights of teachers and parents. We are so thankful that this chapter is finally closed and that justice has prevailed.”

The ACLU Foundation of Southern California ripped the ruling saying it places transgender and gender nonconforming students at risk of being outed to their parents.

“This decision denies the realities the California Legislature recognized when it adopted the SAFETY Act last year, and the Student Success and Opportunity Act back in 2013, to help ensure all students feel safe and respected at school, even if they are not ready or able to be out at home or are navigating a less-than-supportive family dynamic,” Christine Parker, a senior staff attorney with the Gender, Sexuality and Reproductive Justice Project at the ACLUFSC. “A culture of outing harms everyone — students, families, and school staff alike — by removing opportunities to build trust. LGBTQ+ students deserve to decide on their own terms if, when, and how to come out, and to be able to be themselves at school.”

She also said rather than focusing on ensuring the best education for all students, these efforts seek to exploit the lack of familiarity with transgender people, spread misinformation and disrupt trust within school communities.

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Correction: There is just 2,000 feet of laid track. A previous version said 2,000 miles. I regret the error.

STATE — California has dropped its lawsuit over $4 billion in lost federal funding for the state’s high-speed rail project, marking a major shift in strategy for the long-delayed plan.

In response, the California High Speed Rail Authority announced a shift in strategy as officials will seek private investment to keep the ambitious plan alive. The decision to abandon the lawsuit was filed on Dec. 23 by California Attorney General Rob Bonta on behalf of the HSR and ends a legal battle with the U.S. Department of Transportation after it terminated grant agreements in July, according to reports.

The decision underscores the challenges facing the bullet train, which voters approved in 2008 with the promises of a $33 billion system connecting Los Angeles and San Francisco in under three hours. Seventeen years later, the project is billions over budget, decades behind schedule and at the center of a political firestorm over costs and accountability.

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To date, $13 billion has been spent on just 2,000 feet of installed track, while other funds have been used to acquire land, conduct environmental reviews, and design work.

Federal officials said the state lacked a viable plan to complete a large segment of the bullet train through the Central Valley, citing missed deadlines and exploding costs.

“This action reflects the state’s assessment that the federal government is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California,” an authority spokesperson said in a statement. “The Federal Railroad Administration stated that all work performed by the Authority – whether undertaken as part of cooperative agreements or otherwise – remains ‘at risk’ and may not receive funding.”

The move comes as the HSRA pivots toward alternative funding sources, including $1 billion per year from the state’s cap-and-trade program through 2045 and a new push to attract private investors, according to the HSRA. Officials launched a formal procurement process this month to secure a co-development partner by mid-2026, aiming to leverage private-sector innovation and to accelerate construction.

The French connection, escalating costs

Voters approved Proposition 1A in 2008 after being pitched the $33 billion system would connect L.A. and San Francisco by 2020.

The state hired SNCF (Société Nationale des Chemins de Fer Français), France’s state-owned national railway operator, in the early planning stages of the project in 2009-10, hoping to bring its expertise from Europe’s successful TGV network.

However, SNCF left the project in 2011 as it grew frustrated by political infighting and repeated changes to the route, according to reports. Reports cite project managers warning state official the process was “politically dysfunctional,” and SNCF’s recommendations were ignored.

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Correction: There is just 2,000 feet of laid track. A previous version said 2,000 miles. I regret the error.

STATE — California has dropped its lawsuit over $4 billion in lost federal funding for the state’s high-speed rail project, marking a major shift in strategy for the long-delayed plan.

In response, the California High Speed Rail Authority announced a shift in strategy as officials will seek private investment to keep the ambitious plan alive. The decision to abandon the lawsuit was filed on Dec. 23 by California Attorney General Rob Bonta on behalf of the HSR and ends a legal battle with the U.S. Department of Transportation after it terminated grant agreements in July, according to reports.

The decision underscores the challenges facing the bullet train, which voters approved in 2008 with the promises of a $33 billion system connecting Los Angeles and San Francisco in under three hours. Seventeen years later, the project is billions over budget, decades behind schedule and at the center of a political firestorm over costs and accountability.

Subscribe now

To date, $13 billion has been spent on just 2,000 feet of installed track, while other funds have been used to acquire land, conduct environmental reviews, and design work.

Federal officials said the state lacked a viable plan to complete a large segment of the bullet train through the Central Valley, citing missed deadlines and exploding costs.

“This action reflects the state’s assessment that the federal government is not a reliable, constructive, or trustworthy partner in advancing high-speed rail in California,” an authority spokesperson said in a statement. “The Federal Railroad Administration stated that all work performed by the Authority – whether undertaken as part of cooperative agreements or otherwise – remains ‘at risk’ and may not receive funding.”

The move comes as the HSRA pivots toward alternative funding sources, including $1 billion per year from the state’s cap-and-trade program through 2045 and a new push to attract private investors, according to the HSRA. Officials launched a formal procurement process this month to secure a co-development partner by mid-2026, aiming to leverage private-sector innovation and to accelerate construction.

The French connection, escalating costs

Voters approved Proposition 1A in 2008 after being pitched the $33 billion system would connect L.A. and San Francisco by 2020.

The state hired SNCF (Société Nationale des Chemins de Fer Français), France’s state-owned national railway operator, in the early planning stages of the project in 2009-10, hoping to bring its expertise from Europe’s successful TGV network.

However, SNCF left the project in 2011 as it grew frustrated by political infighting and repeated changes to the route, according to reports. Reports cite project managers warning state official the process was “politically dysfunctional,” and SNCF’s recommendations were ignored.

Read more

VISTA — San Diego County is moving forward with a sweeping plan to overhaul the Vista Detention Facility, a decades-old jail plagued by aging infrastructure and growing safety concerns.

The San Diego County jail is located at 325 S. Melrose Dr., near State Route 78, and currently houses more than 800 inmates or those awaiting court hearings. The county released its Notice of Preparation on Dec. 4 and will accept public comments through Jan. 20.

The proposed renovation would expand inmate capacity, replace outdated security systems and rebuild critical facilities at the jail, which opened in 1978 and now houses more than 800 people. San Diego County Sheriff Kelly Martinez said the cost estimate is at least $950 million and is necessary to address deficiencies highlighted by a 2022 state audit.

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The blistering report highlighted conditions across the county jail system from the California State Auditor regarding in-custody deaths and recommendations to improve healthcare services and safety.

The county faces a class-action lawsuit alleging inadequate medical and mental health care, unsafe conditions and a lack of ADA accommodations inside the jail.

Regardless, Martinez is requesting at least $950 million, and perhaps as much as $3 billion, which may include a public safety bond measure, she told the Board of Supervisors on Dec. 9.

“The reality is that the jails were not constructed to accommodate the standards and level of care required for today’s incarcerated population,” she said. “Deferred maintenance is not a savings; it’s a compounding liability. Emergency repairs, inefficiencies, and operational disruptions are draining resources that could be better spent on long-term sustainable solutions.”

The Vista jail is now at the end of its life, according to a county consultant. Also, parts of the jail rely on 1980s technology for cameras, intercoms and door locks. Hardware and software are no longer supported by manufacturers, and a system failure could force the sheriff to vacate the jail because there is no other space.

Martinez also requested $20 million for an immediate security system replacement to keep the facility operational. Construction is not expected to begin until Fiscal Year 2028-29.

The project calls for 984,217 square feet of new construction with a majority of the components in one six-story building on the northwest corner, according to the NOP.

The main facility totals 448,116 square feet with a maximum height of 69 feet and would provide approximately 318,983 square feet and increase the inmate capacity from 807 to 1,412 by adding 605 new beds. Additional services in the main facility would include security and staff areas, food services, medical and educational facilities, indoor recreation and parking, per the NOP.

The Vista sheriff substation would be demolished and replaced with a two-story, 36,000 square foot facility south of the main facility. The project also proposes a three-story parking structure in the northeast corner and additional three-level parking structures in the lowest levels of the jail. The project would remove 244 surface parking spaces and provide up to 820 new parking garage spaces, for a net increase of 576 parking spaces.

In addition, the project would also demolish and rebuild the law library, the county department of General Services Facility Operations shop and fleet services fueling station, and the central utility plant.

“I just think putting this in scale, we look at $1 billion, and that feels like completely overwhelming, but having a conversation about how we could find $60 million a year to do for the debt service feels like a conversation that feels more manageable,” Chairwoman Terra Lawson-Remer said.

The proposal calls for replacing those elements with two parking structures, a new central utility plant, a tunnel to the south court, Facility Operations shops, fleet fueling station, outdoor courtyard, and detention and re-entry facility that will include replacement and future housing, intake/release, food services, medical, re-entry, rehabilitation and recreational facilities, and other ancillary structures.

However, the project timeline is lengthy as the county is estimating 12 years for completion. The report states a phased approach would be instigated as to avoid as many disruptions as possible.

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SAN DIEGO — The San Diego Association of Governments Board of Directors approved its $125 billion regional transportation plan on Dec. 12, setting priorities for highways, transit and bike infrastructure through 2050.

The scaled-down plan drops the controversial road user charge, trims $40 billion from the 2021 proposal, and emphasizes fiscal realism while meeting state climate mandates.

Chief Executive Officer Mario Orso and Senior Director of Regional Planning Antoinette Meier said a more realistic approach will be emphasized in the 2025 plan. Meier said the plan will not include a “wish list” or projects but will focus on fiscal constraints compared to the controversial $172 billion plan from 2021. The plan is required to be updated every four years.

The vote capped years of technical analysis, public outreach and political debate. In a near-unanimous vote (16-1), Escondido Mayor Dane White was the only no vote, calling into question the cost, transit-specific projects are not forward-looking and outdated, along with other concerns such as managed lanes (tolls) and no ability to get credit for emissions reductions from electric vehicles.

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SANDAG is required under state law to approve an RTP that meets state and federal guidelines or risk being ineligible for billions of dollars in transportation funding.

Orso, a former Caltrans director, said the 2025 plan commits to past projects promised under the TransNet tax approved by voters in 2004, such as highway improvements on Interstate 5, 805 and State Route 76, to name a few.

“We passed a very well-balanced plan,” San Marcos Mayor Rebecca Jones, who sits on the board, said. “It’s $40 billion less than last time, and there’s no road user charge or conversion of (managed) lanes in North County. And the expansion of microtransit, so I thought that was a win.”

The new plan, mobility blueprint

The plan is driven by the California Air Resources Board (CARB), which sets emission standards and other mandates that must be met by cities, counties and agencies like SANDAG, according to San Diego City Councilman and SANDAG Vice Chairman Joe LaCava.

Oro and other SANDAG staff said the plan promises a “balanced” and “multimodal” approach and will continue investments in transit, such as rail and buses, active transportation with more than 700 miles of proposed bike lanes, lane expansion on State Route 78, safety projects and upgrades in technology.

Perhaps the most notable component of the new 2025 plan is the significant cost decrease compared to the 2021 plan. Revenue estimates were scaled back as one reason was SANDAG’s population estimates showed flat growth from 2035-50.

“When I look at this plan … assume it’s going to be over $200 million (by year of expenditures), new buses, trains, tunnels and the vast minority of people,” White explained. “The vast majority of people are solo travelers. It’s just a tax on everybody in the county for a very small minority of people who will benefit from this plan.”

Carlsbad representative Kevin Shin said the plan is solid, but wants to see SANDAG being even more proactive and open to potential disruptions within the transportation sector. He said the plan is a result of the board’s patience over the past year as SANDAG transitioned into Orso’s leadership, compared to former CEO Hasan Ikhrata.

As for the disruptions, Shin said things like automated vehicles and other industry trends must be included going forward. He said it would be wise to get ahead of those emerging trends so the board and SANDAG can pivot quickly if needed.

As for the plan, Shin said the city submitted a letter to SANDAG emphasizing the importance of sub-regional analysis within the environmental impact report. He said the request is not about creating division or tension between sub‑regions, but rather supporting a cohesive, countywide strategy and recognizing the need to move forward in unison as a region.

“Our position is simply that San Diego County is geographically and demographically diverse,” Shin said. “Coastal communities like Carlsbad face distinct environmental conditions, infrastructure constraints, and population dynamics that differ from inland or urban core areas. Ensuring that sub‑regional impacts are clearly analyzed allows future decisions and investments to be grounded in data rather than assumptions.

That level of analysis strengthens the regional plan overall and helps ensure that when emphasis is placed on one area over another, it is done transparently and based on measurable need.”

The 2021 plan estimated a population growth of 436,000 new residents, while the 2025 plan projects an increase of just 112,994 people.

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As for the cost, SANDAG is proposing several methods such as tax revenue, state and federal grants, tax increases and managed lanes. However, the controversial road user charge, which was dropped in 2023 in due to Jones’ efforts, is not part of the plan, although the state is expected to implement its own RUC in the coming years for all motorists.

She said the RUC would’ve hurt all county residents, especially lower-income people, along with businesses.

“That’s a huge win and that is the collaboration of listening to the board members when we were talking about this,” Jones added. “That didn’t happen in the last plan. The last plan … it was told to us this is what it is and what you need to approve. It could never actually be implemented.”

The sales tax measures, meanwhile, call for a three-quarters-cent increase in 2038, pending voter approval by a two-thirds majority, and a San Diego-specific sales tax increase for the Metropolitan Transit System. The percentage of the MTS proposal has not been released.

SANDAG staff said about 70% of anticipated revenues will not materialize until after 2036.

2025 Rtp

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According to the plan, also includes upgrades to existing bus and rail service, 59 new routes and 36 neighborhood shuttles aimed at rural and urban communities. The Youth Opportunity Pass program, which provides free transit for riders under 18, is funded for the life of the plan, although SANDAG and elected officials said they are still seeking a sustainable revenue source.

One of the most closely watched projects — the Purple Line rail corridor — remains in the plan but with a revised timeline and will connect South Bay to Sorrento Valley. SANDAG officials said it’s a “transit lifeline” for the South Bay and will move forward only as funding and engineering realities allow. It will revert to a light rail line compared to a heavy rail line in the 2021 plan.

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Another controversial item from the 2021 plan that has been removed was a people mover to shuttle passengers to San Diego International Airport. Instead, a light rail connection to the airport is planned for the later years, while near-term improvements focus on shuttle and bus service.

The plan also sets aside $1.5 billion for habitat conservation, exceeding basic mitigation requirements.

North County’s outlook

North County emerges as a focal point for near-term investments, while North County Transit District (NCTD) secured several priorities in the plan, reflecting a strong push for rail modernization and flexible transit options.

NCTD’s top priorities include double-tracking for both Coaster and Sprinter and to fund the Sprinter fleet replacement, along with grade separation projects on both corridors to enhance safety and ease congestion, according to the plan. The Sprinter fleet replacement is expected to cost at least $350 million as NCTD only has seven trains and cars in operation on the line.

The RTP continues investments in the LOSSAN rail corridor, which connects North County to Los Angeles and San Luis Obispo. These projects include the San Elijo Lagoon double-tracking project ($40 million) and the realignment of the tracks on the Del Mar Bluffs.

The Del Mar realignment carries a hefty price tag of up to $4.3 billion. Stabilization of the bluffs alone has risen to $88 million, up from $58 million in 2020, with $62 million already spent, according to SANDAG officials, and is not a long-term solution.

The RTP also calls for significant expansion of bus and microtransit services. A new mixed rapid route, Rapid 483, will connect Temecula to Palomar College and California State University San Marcos, with stops near major employment and healthcare hubs in San Marcos, such as the new Scripps Hospital and Kaiser Permanente facility.

SANDAG staff said planning for the route is already underway, and implementation is expected before 2035. However, a sustainable operational funding source for this service has yet to be found.

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Continuing with the bus theme, Flexible Fleets, including NCTD Plus, will expand in North County to provide on-demand microtransit service in areas with limited fixed-route options. These services, which typically use smaller vehicles carrying up to 15 passengers, are designed to bridge gaps and connect riders to major transit hubs.

NCTD Plus is planned for Fallbrook and other unincorporated areas, while Flexible Fleets represent an $801 million investment through 2050. The plan also proposes increasing capacity on key Breeze bus corridors to accommodate growing demand.

Rural corridor improvements, such as shoulder widening, curve straightening and intersection upgrades, aim to improve safety for unincorporated communities and tribal nations.

Two tribal priority projects — the I-8 West Willows Road interchange and SR-76 realignment — were tagged as near-term actions for design and environmental clearance, according to staff.

Managed lanes

Managed lanes remain one of the most high-profile elements of the 2025 RTP.

The lanes are a cornerstone of SANDAG’s Complete Corridors strategy and are designed to maximize the existing network and manage traffic demand through “dynamic” tolling, also known as congestion pricing.

Jones said the plan calls for SR 78 to add managed lanes, so that the so-called general-purpose lanes won’t be converted. However, some general-purpose lanes on other highways in the county will be converted, according to the plan.

The managed lanes, though, will be free for buses, carpools, vanpools, motorcycles and emergency vehicles. Solo drivers, though, can use these lanes by paying a variable toll that fluctuates based on congestion levels.

The 2025 RTP proposes more than 90 miles of new managed lanes across the region at an estimated cost of $2 billion by 2035. Revenue from tolls is considered a user fee by SANDAG and is critical for funding other projects.

White ripped managed lanes, saying they were a hidden tax on drivers who need the highways to navigate daily life, along with increasing the cost of living, and goods and services.

“I look at this plan and ask who is this for?” White added. “Unless you ride public transportation, your life is going to get worse as regular lanes get turned into managed lanes. It just doesn’t seem like a good fit for anybody.”

According to SANDAG officials, the goal is to keep traffic flowing during peak periods while generating revenue to fund transit improvements.

For North County, the plan includes managed lanes on SR 78 and confirms no general-purpose lanes on I-5, I-15 or SR-78 will be converted; only new lanes will be added. SANDAG also pledged toll revenue from I-15 and SR-78 corridors will subsidize transit service along those lines.

“There’s no conversion of current lanes of the general-purpose lanes,” Jones stressed.
Critics argue managed lanes will increase driving, not reduce it, thus lead to an increase in emissions. SANDAG’s modeling labels these projects as “high VMT,” signaling a spike in vehicle miles traveled.

Environmental advocates warn induced demand will erase congestion relief within years and undermine climate goals. To offset those concerns, SANDAG officials said the plan leans on rapid bus routes to meet GHG reduction targets.

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ENCINITAS — The San Dieguito Union High School District Board of Trustees approved a sweeping memorandum of understanding Thursday to tighten oversight of school foundations, fast-tracking changes for the Canyon Crest Academy Foundation after a financial scandal and recent controversy over a Twitch livestream.

The board, though, solidified its position on CCAF by moving up the agreement’s start date to Feb. 1, while the other three MOUs are tentatively slated to begin on July 1. The MOU sets a standardized fee percentage for all foundations, requires thorough reviews and financial reporting systems, and requires all foundations to rent district facilities from SDUHSD unless exempted under specific circumstances.

“We’re bringing forward this MOU that clarifies and re-centers the district’s responsibility for approving and overseeing all non-school-related facility rentals across our district,” SDUSHSD Superintendent Anne Staffieri explained. “As many are aware, and heard, last weekend an outside production company rented a gymnasium through the CCA Foundation under a process that revealed significant gaps in both district and foundation oversight.”

The MOU will begin on Feb. 1 and formalizes the relationship between the district and CCAF after a scathing investigation by two former students — Litong Tian and Kevin Wang — last year. An external audit by CWDL, which also covered San Dieguito Academy, La Costa Canyon and Torrey Pines, confirmed their findings. SDA, LCC and Torrey Pines were found to have minimal issues, which were remedied, and were not at the scale or significance of CCAF.

Also, CCAF, the school, and district are under fire after a controversial Twitch livestream featured Fansly, a website known for adult content, and six women participated in the 24-hour event. There was no nudity or sexual acts, but many parents and students found their involvement, and that of the CCA gym and weight room being closed to students over the weekend, problematic, to say the least.

Once the stream became widely known throughout the district, CCAF and the district issued statements stating they may pursue legal options as they considered the event in violation of the contract.

The stream was organized through a third-party production company, JK Productions, and hosted by PaymoneyWubby (Dennis Richardson). According to district records, JK Productions rented the CCA gym from 9 p.m. on Dec. 4 through 12 a.m. on Dec. 7.

Richardson’s attorney, Jason Brower, said the contract did disclose Fansly as a potential event sponsor and all the terms and conditions were followed.

Many parents, students and others have been speculating as to who and how the Fansly sponsorship was missed and not vetted.

“In fact, in the contract signed by the foundation, Fansly was expressly disclosed on the list of potential sponsors of the event,” Brower said. “It was fully disclosed and agreed to by the foundation. I’m not aware of any concerns raised by the foundation.”

Regardless, there was debate among the board and TPHS Executive Director Joe Austin over the MOU’s Feb. 1 start date. Initially, the board was ready to approve Feb. 1 for all the foundations, but Austin said there would be significant financial damages and other challenges to his foundation, as they have already lined up dozens of rentals.

Dec 11 2025 Mou With Foundations

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Trustee Mike Allman and Rimga Viskanta, though, said they didn’t see or understand how the MOU would impact TPHSF, LCCF, or SDAF, as those third parties would just pay the rental fee to the district rather than the TPHSF.

Austin, though, stressed his and the other foundations shouldn’t be held to the same timeline as CCAF because those three aren’t “making national news.”

Eventually, Allman and Viskanta agreed with a July 1 start date, but called for the Facilities Committee to meet with those three as soon as possible to further discuss their concerns and logistical challenges. Allman said the board could push up the MOU start date earlier if those issues are resolved in a manner suiting both parties.

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Viskanta said the district should also develop and execute a separate policy specific to professional productions and filming, as is done in Los Angeles and other school districts. She said professional productions require “different safeguards, more rigorous oversight and careful coordination with site operations.”

As for CCAF, Allman ripped the non-profit for its history of handling the finances and called for all board members to resign. He also blamed the current and previous SDUHSD board for failing to take action against CCAF and its serious issues.

“The foundation board has been ineffective,” Allman added. “It’s easy to understand how a culture can manifest when friends appoint friends. I think we need a complete reboot of their governance. Control, alt, delete so we can get it right this time.”

Inside the MOU

The foundations must adopt a comprehensive operating manual detailing responsibilities, internal controls, and compliance requirements, with regular updates to the SDUHSD board. All disbursements require documented pre-approval, and annual reviews of expenditure records are mandatory.

Under the MOU, all foundations are prohibited from setting or collecting rental fees and all payments must go directly to the district.

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As for school-affiliated camps, clinics, or fundraisers, each foundation may reserve facilities without fees but must submit requests through an online portal. Those requests must include indemnification agreements, insurance naming the district as an additional insured and approval from district administrators.

Additionally, each foundation must provide quarterly and annual reports, such as balance sheets, income statements, donor activity and produce an annual public presentation upon request. Also, the district can audit any foundation’s financial records at any time.

Administrative fees must be transparent, disclosed in all donor materials and capped at 10%. The fee percentages will be reassessed periodically.

Donors will be allowed to allocate 100% of their funds to one specific program or department under the MOU.

Also, the foundations may allocate a portion of program-specific donations to a shared fund (for multiple programs), but must clearly disclose allocation percentages, provide opt-out options for donors and comply with board policy and Title IX. Annual reports must include total donations, allocations and opt-out data.

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The foundations must also comply with IRS Form 990 disclosure requirements for compensation and in-kind contributions. The MOU requires that credit card transactions come with supporting documentation and are subject to district audits.

Monthly cash reconciliations must be reviewed and signed by an independent reviewer, and all accounting records must be regularly posted and reconciled. Finally, the foundations are required to maintain director and liability insurance policies.

The investigation

Tian and Wang’s investigation centered on the CCAF handling of the financials of the school’s robotic club’s fees and revenue from 2021-24. Their findings revealed between $3.5 million and $3.9 million in unexplained expenses and a failure to report certain requirements to the IRS.

One of the findings from Tian, Wang and CDWL centers on renting school facilities. The foundations were allowed to rent school facilities without paying rent to the district.

The audit found significant issues with the lack of formal agreements between the district and foundations, no routine financial reporting, missing operating policies and procedures, weak internal controls, failure to disclose executive compensation, missing employee I-9 files required by federal law, improper tax reporting, and more.

Another source of contention was the fees charged by CCAF to each club or extracurricular activity covered by the foundation. CCAF was charging 25% the investigation and audit found but reduced the fees to 20% in August.

The fees charged by the foundation were to manage the donations and finances of clubs and athletics, although many parents and students cast doubt on those claims.

“The only significant changes in this MOU compared to the draft released last month is that its implementation was pushed forward to February instead of July,” Tian said. “The MOU includes a provision to cap administrative fees at 10%, a provision to allow donors to opt out of contributing to general funds, and it also places limits on the Foundation’s ability to rent out school facilities. I very much approve of the contents of the document.”

Some parents and others are still pushing the trustee to conduct a forensic audit, as the CDWL audit only sampled about 3% of the transactions under scrutiny.

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CARLSBAD — Roosevelt Street in Carlsbad Village may be reshaped as two proposed projects call for condos, retail space, and demolition of longtime businesses, including Hennessy’s Tavern.

The Dewhurst and Rincon Roosevelt projects are mixed-development proposals with 50 for-sale condos, seven of which will be affordable, retail spaces, parking and other amenities. Hennessy’s, a vacant office building, eight apartments and Karlsbad Realty will be demolished.

The Dewhurst project will be five stories, while the Rincon development will top out at four stories. Both project applications have been filed under Senate Bill 330, which streamlines the approval process for housing developments by limiting local governments’ ability to impose new requirements or delays.

“The project is a mixed-use building featuring 33 homes, five of which will be deed-restricted affordable homes for very-low-income families,” Jonathan Frankle, a vice president with Rincon Homes, said of the Rincon Roosevelt project. “All units will be for sale. The project also includes approximately 3,500 square feet of retail with spaces for restaurants, retail, and other local small businesses.”

It’s the second time over the past seven years that Hennessy’s and those properties have been on the chopping block. Those businesses and buildings, along with Mas Fina Cantina and a two-story building on Roosevelt Street and Beech Avenue, were slated for demolition as part of the Carlsbad Station project by McKellar McGowan Holdings, LLC, which was approved by the City Council in 2020, The Coast News reported.

However, the project fell through, and those businesses and buildings survived, much to the delight of Hennessy’s and Mas Fina Cantina customers. But these new projects are expected to move forward as Frankle said the Rincon Roosevelt development will go before the City Council in the first quarter of 2026, with construction scheduled to begin in 2027. He said it will take about two years to build the new project.

McKellar McGowan did not respond to a request for comment.

As for The Dewhurst project, Carlsbad City Planner Eric Lardy said the application was submitted on March 6 and then resubmitted in September. He said under the current schedule, the project will go before the Planning Commission in May 2026 and then to the City Council in late summer 2026.

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The two new developments will join The Roosevelt, a mixed-use project with 23 apartments and 5,400 square feet of ground-floor commercial space by Fabric Investments. The project was approved by the City Council in August and is located at 2621 Roosevelt St., between Laguna Drive and Beech Avenue, according to The Coast News.

The Roosevelt will be 45 feet high with a covered parking garage with 24 parking spaces, an open courtyard, two office suites, and bike storage, among other amenities.

The Dewhurst project

Lardy said the development will a five-story (64.5 feet tall) mixed-use building with a total of 58,445 square feet. There will be 17 for-sale condos, an 850 square foot retail unit and an at-grade parking garage with 33 parking spaces.

The second through fifth floors have nine two-bedroom units ranging from 1,125 to 2,040 square feet, seven three-bedroom units ranging from 1,379 to 3,722 square feet, and one four-bedroom unit (3,960 SF), for a total of 35,127 square feet. The retail condominium unit is 850 square feet, according to the project website.

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Each residential unit will have a private outdoor deck. In addition, all residents will have access to a 600-square-foot partially covered rooftop common area on the fifth floor with a fireplace, dining and lounging areas, a barbecue and a counter area. No deck on the fifth-floor rooftop is proposed.

The top of the building contains penthouse units where a penthouse deck setback gives relief at the fifth level.

The project requires approval of a Site Development Plan, as well as a Tentative Tract Map to designate condominiums and to consolidate two existing lots into one, according to the website.

As for parking, which will be located behind the retail space and lobby area, is an at-grade parking garage with access from Roosevelt Street. The parking lot consists of 12 parking lifts (24 spaces), three tandems (six) spaces, two single stalls (including one for the USPS), and two van-accessible American with Disability Act (ADA) stalls.

Since the project is located within 0.5 miles of the Carlsbad Village Station, the project will not have any retail parking (other than one van-accessible ADA stall) as is allowed under Assembly Bill 2097, the website reads.

AB 2097 also exempts the project from residential parking (20 units required by the city), but the McGowan McGowan chose to include the spaces, according to the website.

The project will have 17 electric vehicle (EV) ready spaces. The parking garage also includes areas for bicycle racks, trash, and normal utility installations.

The Rincon project

Rincon Roosevelt is a transit-oriented mixed-use development and features 33 for-sale condominium units and approximately 3,500 square feet of ground-floor retail space in one four-story building located at 2747-2775 Roosevelt Street, Lardy said.

According to the project website, parking will be provided for all residential units on the ground floor, including electric vehicle charging stations, for a total of 43 garage spaces The project also replaces an existing real estate office (Karlsbad Realty), parking lot, and eight studio apartment units adjacent to Hennessy’s.

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The project includes five or more units of affordable housing for low and very low-income households. The project website states the proposal is compliant with the city of Carlsbad’s General Plan and the Village and Barrio Master Plan, both of which designate the site for mixed-use development.

The project is currently in the planning stages, and public feedback can be found on the project website.

Correction: The Rincon Roosevelt project will have 33 units, not 44. SB 330 doesn’t allow for ministerial approval, although it prevents delays for approval. I regret the error.

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