In order to avoid depleting the reserves entirely, the district must address this annual deficit and balance the budget.
A parcel tax increase could increase revenues by ~$2.8M.
The district currently collects $311 per lot in parcel taxes (~4,000 lots). In an effort to reduce the budget gap, the district can seek voter approval for an additional parcel tax. For example, a new $700 per-lot parcel tax would provide an additional $2.8M in district revenues. In order to pass a parcel tax as soon as possible (2025), the district would need to pay for a special election. Approval requires two-thirds of the votes, and revenues would not come in until 2026.
The district’s budget assumes property-tax growth of 4.5% per year. Any 1% change up or down equates to ~$258K in more or less revenue. The district takes this into account as we run scenarios.
The district may need to make significant budget cuts.
If voters do not approve an additional parcel tax, the district will need to find other ways to balance the ~$3M annual deficit, including making potential changes to student programs and services. The district may need to consider potential areas for cuts, including:
-
Bus service ($80K per route or $800K in total)
- Small class sizes ($150K per grade, downsizing by one classroom per grade)
- Elective classes ($150K per class)
-
Learning-support services ($225K)
- Contracted counseling professionals ($120K)
We hope this clarifies the impact of the district’s two-year offer. In an effort to resolve this dispute, the district and board will continue to craft, discuss, and negotiate alternative proposals for as long as it takes.
The negotiations process
Over the last several days, the district and board have been engaged in the negotiations process all day and often late into the night (we often meet virtually). We’ve generated many options to discuss with the LLEA. Each time one party floats an idea, it can take the other party hours to consider. On the district side, the board and staff seriously evaluate each proposal, including running financial analyses to understand the impact.
We are hopeful that our continued effort and due diligence will lead to a productive outcome. We will continue to dedicate the time needed to reach an agreement. In turn, we ask you, our community, to continue providing input (the best way to reach us is by email through bpolito@llesd.org and schoolboard@llesd.org).
We remain focused on the students and know how important it is for them to return to their normal learning routines.
In shared commitment to our students,
Dr. Beth Polito
Superintendent
Heather Hopkins
Board President
