Our Lady of Mount Carmel School, located in the Montecito Village, is situated behind picturesque Our Lady of Mount Carmel Church. Founded in 1944 by Reverend John Meehan, Our Lady of Mount Carmel School grew and flourished under the religious leadership of the Immaculate Heart Sisters for twenty-four years. In 1968, the Dominican Sisters of Mission San Jose were welcomed and maintained administration of Our Lady of Mount Carmel School until 1992 with the exception of two years in the early 1980s when a lay principal served. A lay teacher accepted the duties of principal in 1992 to guide the school during a transitional period. In 1993, the Sisters of Saint Joseph of Carondelet assumed leadership of Our Lady of Mount Carmel School and the Parish Religious Education Program, and the interim principal returned to teaching. Since 2000, Our Lady of Mount Carmel School has been administered by lay principals and is currently staffed by the laity.

From the school's humble beginnings, with classes first being held in an old bungalow, the school has now grown to a facility with nine classrooms, a preschool, large workroom, faculty room, office, parish hall, spiritual library, and art studio. School site improvements continued with a faculty room remodel in 2014. The following year brought many new updates including a new coat of exterior paint, the addition of water stations, security upgrades, and the revitalization of the school garden. In the summer of 2018, new trees were planted and benches were built to improve the aesthetics outside the classrooms. The campus continues to be improved with ongoing capital improvment projects. The school staff utilizes instructional best practices, and students have access to the latest technological tools, most recently benefitting from a C3 Ignite grant in the form of 140 new student iPads in 2021.

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