SANTA ANA, CALIF. – Aug 6, 2025 – The Santa Ana Unified School District (SAUSD) and Orange County School of the Arts (OCSA) today announced the resolution of a long-standing dispute over special education costs dating back to 2019 and prior to current district and school leadership tenure.
The $8.55 million settlement, achieved through facilitated mediation, provides a solution to refocus resources back to students and avoids the costs and delays of continued litigation.
“This settlement allows Santa Ana Unified to move forward,” SAUSD Superintendent Dr. Lorraine Perez said. “With our focus remaining on expanding educational opportunities for the children of Santa Ana and ensuring they receive the support and services they need to thrive.”
The agreement fully resolves all outstanding claims related to the legal dispute, allowing SAUSD and OCSA to support their respective communities.
“We are grateful that the mediation process created a pathway to ending this legal dispute, prioritizing what matters most – students,” said OCSA President and CEO Teren Shaffer. “This resolution reflects the strength and unity of our community. We deeply appreciate the unwavering support of our students, parents, staff, and the broader OCSA family, who have been steadfast advocates for the arts and for OCSA throughout this process.”
SAUSD schools will begin the 2025-2026 school year on Aug. 11 with more than 40,000 students enrolled, and OCSA begins its school year on Aug. 13 with each of its 2,450 seats filled.
About Orange County School of the Arts
The nationally recognized Orange County School of the Arts (OCSA) provides an unparalleled arts and academic education in a creative, challenging and nurturing environment to a diverse student body with a passion for the arts. Founded in 1987, OCSA currently serves approximately 2,450 gifted students in grades seven through 12 from more than 100 cities throughout California. In addition to a college-preparatory academic program, OCSA offers pre-professional arts training in 17 conservatories within the Schools of Applied Arts, Dance, Fine & Media Arts, Music and Theatre. The nonprofit public charter school relies solely on private donations, totaling $10 million annually, to fund the arts training programs. Currently led by president and CEO Teren Shaffer, OCSA has received recognitions for its programs locally, regionally and nationally. For additional information, visit www.ocsarts.net.
About Santa Ana Unified School District
The Santa Ana Unified School District (SAUSD) is the fourth-largest school district in Orange County, serving approximately 44,000 students across 56 schools in grades TK–12. Located in the heart of Orange County, SAUSD is committed to preparing all students for college and career success through a focus on equity, innovation, and whole child development. The district offers a wide range of academic programs, including dual language immersion, visual and performing arts, STEM, early college, and career technical education pathways. SAUSD’s dedicated educators, staff, and community partners work collaboratively to ensure every student thrives in a safe, supportive, and engaging learning environment. For more information, visit www.sausd.us.