Q. What is Measure A?
Measure A, originally approved in 1989, provides funds for the educational program in local schools in the Los Altos School District through a special parcel tax collected annually. Voters must approve authorization to spend parcel tax funds every four years as required by the Gann Appropriations Limit. Citizens 65 years and older can apply annually for an exemption from the tax. The tax is fully deductible from both federal and state income taxes. Funds from the parcel tax are necessary to keep class sizes small, maintain small neighborhood schools, hire and retain high quality teachers, keep libraries open, provide student educational materials, and preserve the district's educational program at its current level.
After conducting an annual review of district finances, the independent Citizens Advisory Committee on Finance (CACF) found that even though it operates on a very lean budget the district is facing a severe financial crisis. Without additional funding to bridge the gap between insufficient revenues and increased program costs, the district cannot continue to offer its current level of educational program without making significant cuts. The CACF recommended the Board of Trustees get voter approval to increase the parcel tax by $333 from the existing $264 per parcel per year to an amount not to exceed $597 per parcel per year to avoid drastic cuts to the district's budget.
Q. An increase of $333 per year sounds like a lot. Why does the district need so much?
Even though our district operates on a bare bones budget it does not receive enough state and other revenue to keep pace with inflation and rising costs. For the last several years, the district has been able to balance its budget by cutting expenses and finding one-time sources of revenue. But these one-time revenues are not expected to continue and the district must increase its parcel tax by enough to absorb several years' worth of cost increases. Without Measure A, the district will be forced to make dramatic cuts to its educational program that could seriously affect the quality of educational program offered to the children in our community.
Q. What about the quality of education in the district? How does LASD rank in academic performance?
The Los Altos School District has consistently ranked at the top of the list statewide for academic excellence year after year. This year, for the fourth year in a row, district students received the highest academic test scores in California. This high student achievement is directly related to the solid academic program provided by the parcel tax, including small class sizes and small neighborhood schools.
Q. Why are small class sizes and small neighborhood schools important?
Small class sizes and small neighborhood schools are key components of the district's excellent educational program. Repeated studies validate this conclusion. While the state supports small class sizes, it does not provide enough funds to fully implement the program. Small neighborhood schools have long been an integral part of the character of our community. Both programs will be in jeopardy if Measure A does not pass.
Q. What is the Citizens' Advisory Committee for Finance?
In 1988 the district created the Citizens' Advisory Committee for Finance (CACF) an independent committee comprised of representatives from local business, civic, and community organizations which meets annually to review the district's budget and finances. The committee provides accountability for parcel tax expenditures and oversees district expenditures to make sure the district carefully manages its money and that the district's budget carries no "fat." In addition, the district sends out an annual report card to the community which documents how parcel tax revenues are spent. After an intensive study of district finances last year, the CACF recommended in December 2001 that the Board of Trustees increase the parcel tax to $597 per year in order to meet the district's needs for at least the next four years.
Q. Why four years? What will happen then?
Gann Limits, passed by the voters in 1979, require that the district go back to the voters every four years to get permission to spend Measure A funds. Budget projections reviewed by the CACF show Measure A will meet district needs for at least the next four years. At that time the CACF will need to reevaluate the district's budget situation.
Q. Why are costs increasing faster than revenues?
Basic funding levels for the district are set by the state under a formula developed over 20 years ago. Although it includes an annual cost-of- living adjustment (COLA), only 80% of the district's total revenues are adjusted for COLA, while most of its expenses increase by inflation each year. In addition, the district, like every other school district, must provide incentives to its teachers for experience and continuing education in order to keep and retain quality teachers. These costs, however, are not covered by the state's COLA formula. As a result of these structural problems, district expenses increase by $700,000 more than its revenues each year. The district also had to deal with several unexpected cost increases during the last several years.
In 2000 the Governor reached an agreement with the state teachers' union to try to bring teacher salaries up to more competitive levels through a one-time cost-of-living adjustment of 10%. Although the state paid part of this increase, the increase costs the district an additional $500,000 each year. In 1999 the state also changed the way it reimburses and distributes the costs of special education programs. The state has never fully paid the costs of these mandated programs, but under the new formula the district's annual deficit increased by $500,000. Finally, opening a seventh elementary school, necessary to keep school size at a reasonable level, has cost the district $400,000 per year in lost rents and will add $350,000 in operating expenses starting next fall.
Q. OK, I think I understand why costs have gone up. But why such a large increase next year?
During the last several years, one-time funding sources have helped the district deal with these increased costs. This year the district received $200,000 in special support from the PTA's, $500,000 in special support from the Los Altos Educational Foundation (LAEF), and had to tap $1.3 million from reserves accumulated in previous years. Other one-time revenues included special funding from the state and $500,000 in insurance refunds. None of these sources is expected to be available in the future.
Q. Will LAEF and the PTA's have to raise these special funds again?
No. These one-time Band-Aid funds were intended as a one-time special fund raising effort until the district could determine how to fix the funding problem.
Q. When my expenses start growing faster than my income, I cut my expenses. Why can't the district do the same thing?
To balance its budget, the district reduced its expenses by $2.0 million during the current fiscal year. The independent Citizen's Advisory Committee for Finance found that any additional cuts would significantly affect the district's educational program. The district operates on a very lean budget. For instance, district administration is already at a minimum level. Only 2% of budget expenditures go for administrative costs, compared to the state average of 4%. District administrative staffing has not increased in 20 years, despite a 40% increase in student enrollment.
Q. But you said the district needs to supplement state funding increases by $700,000 every year. If Measure A meets those needs next year, won't the district be in trouble the year after that?
The CACF recommended Measure A at a rate that will meet the district's needs for at least the next four years. Part of its recommendation, adopted by the district's Board of Trustees, is to place proceeds from Measure A in a special reserve fund to cover the costs for the entire four years.
Q. What are parcel tax funds used for?
Parcel tax funds have been instrumental in providing the strong academic program that has resulted in district students achieving the highest test scores in the state. Funds from the parcel tax are used to: · Keep class sizes low · Maintain small neighborhood schools · Hire and retain high quality teachers · Keep libraries open · Provide student educational materials · Preserve a strong academic program
Q. What will happen if Measure A doesn't pass?
Without an increase in its parcel tax, the district's exceptional educational program is at risk. Without Measure A, the district would need to make severe budget cuts directly affecting the quality of its program. · Class size would increase to above 30 · Libraries would close · Students would share textbooks · Classroom cleaning would be reduced · Junior high electives would be cut · Good teachers would leave. Small neighborhood schools might be consolidated Property values could decline if student performance were affected by these cuts.
Q. What kind of cuts would the district need to make right away?
State law requires the district have a balanced budget. The district is also required to notify teachers by March 15 if there is a possibility they will not be rehired. Many first and second year teachers will get that notice on March 15. If the parcel tax passes, they will be rehired on April 10; otherwise, their reemployment will depend on student enrollment increases and the number of teacher retirements. Many of our best first and second year teachers will choose to go to another district where they can be assured of job security.
Q. Does the district need to increase the parcel tax to improve its educational program?
No. Measure A will simply give the district the funds it needs to maintain its current program, after already making $2.0 million in cuts this year. It will not allow the district to reinstate those cuts or to make any other enhancements to its current educational program.
Q. What is the difference between parcel tax funds and bond funds?
Parcel tax funds support the district's educational program, while bond funds can only be used for construction, renovation, and the upgrade of facilities. Although they serve different purposes, both are necessary to continue to offer the community an outstanding academic program and adequate, safe instructional facilities. No parcel tax funds are used for school construction, and no construction funds may be used for the district's academic program.
Q. What's happening with the district's building program?
In November 1998 the district passed Measure H, a $94.7 million bond issue to renovate the district's aging campuses. By law, this was the maximum amount the district could ask for at the time, and was expected to be enough to completely renovate the district's 40 to 50 year old campuses. But the district began its building program in the midst of Silicon Valley's building boom and the first bids came in 30% over budget. This forced the district to revise its plans and split its building program into two phases.
Phase One, to be paid from the existing bond measure, will allow the district to completely renovate both middle schools, reopen Covington, renovate all existing facilities at the district's six other campuses, and complete engineering work in preparation for Phase Two.
Phase Two will complete modernization of the district's elementary campuses and the replacement of all portables with permanent buildings. Engineering studies needed to determine the cost of Phase Two have not yet been completed. None of the changes made to the original building program have affected the district's educational program, except that Covington school will reopen a year later than originally planned.
Q. If the district is out of money, why is it reopening Covington?
The district, with strong support from the community, believes small neighborhood schools are an important element in a good educational program. Due to enrollment growth, a seventh school must be reopened to alleviate overcrowding on other campuses. This decision was made several years ago after extensive community input.
Q. Measure A provides local control of school funds. What does that mean and why is it important?
State funds are unpredictable and often come with strings attached. The parcel tax provides a local, stable funding source that directly supports local schools. Local control of parcel tax funds allows the district to use the funds for community-approved programs.
Q. But I already pay taxes. Doesn't that money go to our schools?
Although a small portion of regular property taxes go to the district, they are supplemented by the state under an antiquated formula based on expenditures in 1972, when our expenditures were among the lowest in the state. There is no direct relationship between property taxes paid within the school district and the amount of funding the district receives. Proposition 13 allows citizens to increase funding for their local schools though passage of parcel tax measures. Many school districts across the state are instituting and increasing existing parcel taxes to supplement inadequate funding received from the state.
Q. I just read that Governor Davis's new budget will increase spending for schools. Won't that solve the district's problems?
Prior to this year, state spending on education was increasing faster than inflation in an effort to help solve some of the structural problems discussed above. No such adjustments were made to the current year's budget and none are anticipated for several years given the current economic downturn and resulting $12.5 billion state budget deficit. Indeed, the Governor just proposed cutting current year expenditures below budgeted levels. If his proposals are adopted, they will cost the district $290,000 per year. These new cuts were not considered when Measure A's rate was set.
Q. Doesn't the lottery help? What about the Los Altos Educational Foundation (LAEF) and the PTA's?
The lottery provides only 2% of the district's revenue-not enough to make a significant difference. LAEF and the PTA's raise money primarily through parent donations, traditionally contributing about three percent to the district's budget. The extraordinary efforts these organizations made this year to help the district overcome its current budget crisis cannot be counted on in future years.
Q. Do all school districts receive the same amount of money?
No. Menlo Park, Los Gatos, Saratoga, and Palo Alto are just some of the districts which receive more money per student than Los Altos even with our current parcel tax funds. Without Measure A funds, the district would fall to the bottom of the districts in Santa Clara County, ranking 31 out of 33 districts in revenues received per student. Even with current Measure A funds the district's revenues per student are below the county and national average.
Q. The election is scheduled for April 9. Why not the March 5 th primary election or next November's general election?
The CACF wanted to make sure the new parcel tax was adequate to meet the district's needs for at least the next four years and only completed its study in December 2001. The Board of Trustees voted to approve the CACF's recommendation at the very next board meeting in January 2002, but it was too late to place Measure A on the March ballot. Waiting until next November's election would delay funding for next year's budget, necessitating drastic staff reductions. The district chose the next state-sanctioned election date of April 9. The district's experience with both special and general elections indicates that a special election costs about $30,000 more than a general election-much less than the cost to the district of waiting until November.
Q. Why wasn't advance notice of the special election posted in the Town Crier?
The district tried to post formal notice of the election in the Town Crier, but was told by the Santa Clara County Registrar of Voters that a weekly newspaper does not meet the legal criteria for posting the notice. The Registrar suggested the Post-Record, which is frequently used by other jurisdictions holding elections. There was extensive editorial coverage about the election in a front-page article in the Town Crier.
Q. How does the exemption for senior citizens work?
If you are at least 65 years of age and live in your own home, you can apply annually at the district office for an exemption from the tax. Although seniors must renew their exemption each year, the district will send them a notice to facilitate the process. The current procedure will not change under the proposed new Measure A and all current exemptions will continue automatically.
Q. I don't have children in the Los Altos School Distinct. Why should I vote for Measure A?
At the heart of a great community are good schools. Excellent schools make this community a very desirable place for families to live. Good schools attract prospective homebuyers and have a direct relationship to high property values. Education is a good investment.
Q. I have more questions. Where can I get more information?
You can call the Los Altos School District office at 650-941-4010 for more information about the parcel tax or the senior exemption. For more information or to find out how you can support Measure A, check out the KLASS campaign web site at www.klasscampaign.org, email info@klasscampaign.org, or call 650-568-7881.
Q. I want to help pass Measure A. What can I do?
If you want to volunteer, please call or email to the numbers listed above. Donations can be sent to: KLASS Campaign, Keep Los Altos Schools Strong, 1001 Parma Way, Los Altos, CA 94024. Volunteer and donation information can be found here on our web site at www.klasscampaign.org.
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