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1 PLACE: BOARD ROOM - ADMINISTRATION BUILDING 25 CHURCHILL AVENUE, PALO ALTO, CALIFORNIA DATE: TUESDAY, SEPTEMBER 8, 2009 TIME: 9:00 A.M. OPEN SESSION PALO ALTO UNIFIED SCHOOL DISTRICT BOARD OF EDUCATION AGENDA SPECIAL MEETING Board of Education meetings are cablecast live on cable services CHANNEL 28 and webcast live on Board materials are available for review on the district web site at or at the District Office, 25 Churchill Avenue, Palo Alto, CA Meetings are also available on demand at This meeting will not be televised. Should you need special accommodations to participate in the meeting, please contact the Superintendent s Office at or kruegsegger@pausd.org Community members wishing to address the Board are allotted THREE minutes per speaker. Should more than 20 people wish to address any one topic, the Board may elect to allot a shorter time per speaker. Materials presented at the Board meeting will be copied and provided to Board members after the meeting. Additional instructions are listed on the back page of this agenda. STRATEGIC PLAN GOALS A B C D ACADEMIC EXCELLENCE AND LEARNING Create an exceptional learning environment that engages, challenges, and supports all students so that they thrive and achieve their academic potential every year, while preparing them to pursue college and other post-secondary opportunities to be global citizens. STAFF RECRUITMENT AND DEVELOPMENT Create an exceptional teaching environment by recruiting, developing, and retaining the most talented staff. BUDGET TRENDS AND INFRASTRUCTURE Be prudent stewards of our resources through rigorous planning and budgeting and build further resources by enhancing public and private support for public education. GOVERNANCE AND COMMUNICATION Create a focused, transparent governance process that is a model of informed communication and decision making. I. OPENING A. Call to Order B. PAUSD Parcel Tax Discussion 1 The Board will begin discussion about a potential parcel tax renewal election. Action has not been scheduled at this time for a future meeting. II. ADJOURN Page 1

2 BOARD OF EDUCATION Attachment: Discussion 1 PALO ALTO UNIFIED SCHOOL DISTRICT Date: TO: FROM: SUBJECT: Dr. Kevin Skelly, Superintendent of Schools Bob Golton, Co-CBO and Bond Program Manager PAUSD Parcel Tax STRATEGIC PLAN INITIATIVE Budget Trends and Infrastructure BACKGROUND On February 8, 2005, the Board of Education approved a resolution and ballot language for a six year parcel tax. The ballot language stated: To preserve small class sizes; maintain educational programs that enhance student achievement; and restore some essential educational programs including elementary literacy, math, and art support, and middle and high school class offerings shall the Palo Alto Unified School District replace its current parcel tax with a $493 yearly assessment for six years with an optional exemption for senior citizens and an independent oversight committee? The election was held on June 7, 2005, and the voters approved the tax with a YES percentage of 74%. Attachment 1 provides detail on the parcel tax expenditures. (The year report will be available later this month.) PROPOSAL Two attachments are presented for discussion. Attachment 2 is a report on parcel tax election options. Attachment 3 is a planning document for a 2010 parcel tax renewal election. FISCAL IMPACT The tax is $493 per parcel, includes an optional senior exemption, an oversight committee, and annual audits. The revenue from the tax for was $9,213,536 and for was $9,346,204. The final year of the tax is Loss of this source of revenue would require a corresponding reduction in District expenditures. RECOMMENDATION This item is for discussion only at this time.

3 Attachment PAUSD Parcel Tax Expenditure Summary Over Item ESTIMATED ACTUAL (Under) 1 Maintain the commitment of the 2001 Measure D Parcel Tax Ongoing expense of the 2001 salary increase 4,100,000 4,100,000 - CSR for grades 4 through 10 3,007,840 2,889,530 (118,310) 2 Restore 34 teaching periods at the high schools 687, ,502 (4) 3 Restore one half time dean at each high school 108, , Restore 20 teaching periods at the middle schools 404, ,413 (3) 5 Restore 360:1 counselor ratio at the secondary schools 202, ,206 (2) 6 Restore 3 teachers for the elementary schools for literacy and math 315, ,691 (10,379) 7 Restore a half time psychologist for the elementary schools 53,686 53, Restore Spectra Art program to previous level at the elementary 20,000 20,000 - schools 9 Restore 2 elementary librarians 202, ,206 (2) 10 Restore 8 classified positions for instructional and student support 428, ,924 12, Restore $25 per student allocation to schools for instructional support 276, , Restore staff development funds at the school sites 50,000 50,000 - Total Expenditures 9,855,783 9,740,538 (115,245) Actual Receipts 9,200,000 9,213,536 13,536 General Fund Contribution 655, ,002 (128,781) Total Income 9,855,783 9,740,541 (115,245)

4 Attachment 2 PALO ALTO UNIFIED SCHOOL DISTRICT PARCEL TAX ELECTION OPTIONS Charles Heath Vice President and Senior Consultant TRAMUTOLA LLC September 8, 2009 What does it take to win? INTERSECTION OF INTERESTS THE PLAN How will you spend the money? Tax Rate Tax Structure Duration Specific Programs YOUR NEEDS WHAT VOTERS WILL SUPPORT WHO VOTES Voter Data Demographic Analysis Polling Election Scenarios 3 Critical Components Of A Successful Tax Election RESOURCES Time Money People Confidential 1

5 Parcel Tax Planning Timeline March 2010 Election Scenario Note: This scenario (or any other election completed before July 2010 will allow PAUSD to begin receiving increased parcel tax revenue from the increased tax in the budget year. Start Date September 2009 MEASURE PLACED ON THE BALLOT 88 DAYS BEFORE ELECTION DATE Dec 4, 2009 deadline ELECTION DATE March 2, 2010 FEASIBILITY PLANNING & COMM. CAMPAIGN 2 months 2 months 88 days to election March 2011 Election Scenario Note: This scenario (or any other election completed after July 2010 will mean PAUSD will not begin receiving increased parcel tax revenue from the increased tax in the budget year. Start Date September 2009 MEASURE PLACED ON THE BALLOT 88 DAYS BEFORE ELECTION DATE Dec 10, 2011 deadline ELECTION DATE March 8, 2011 FEASIBILITY 2 Months PLANNING & COMMUNICATION 14 Months CAMPAIGN 88 days to election Key Decisions Election Type Polling Place or Mail-in Ballot Election Date 2010 or 2011 Polling Place: March, June or November Mail-in Ballot: Any Tuesday Tax Structure Flat Rate Per Parcel (like you have now) Graduated Tax (based on the square footage of properties) Uniformity Issue Escalation Factor Tax Rate Straight Renewal Increase (how much?) One measure or two? Duration Renew for another six years Longer Evergreen Confidential 2

6 Sample Measures Current PAUSD Parcel Tax: Measure A - Approved June 7, 2005 (74.1% YES) To preserve small class sizes; maintain educational programs that enhance student achievement; and restore some essential educational programs-including elementary literacy, math, and art support, and middle and high school class offerings-shall the Palo Alto Unified School District replace its current parcel tax with a $493 yearly assessment for six years with an optional exemption for senior citizens and an independent oversight committee?" Sample Measures Mountain View Whisman School District Parcel Tax: Measure C - Approved June 3, 2008 (80.35% YES) "To continue local school funding, reduce the impact of budget cuts, attract/retain teachers/staff, support students struggling with the basics, maintain textbooks/instructional materials, keep class sizes small, maintain music/art education, keep school libraries open, and fund other educational programs, shall Mountain View Whisman School District extend and increase its expiring tax based on square footage of parcels described in the voter pamphlet, for 8 years with independent oversight, exemptions for seniors and all funds staying locally? Size of Parcel Amount of Annual Tax 0-8,000 square feet $127 per parcel 8,001-14,000 14,000 square feet $254 per parcel 14,001-22,000 square feet $339 per parcel 22,001-28,000 square feet $508 per parcel 28,001-44,000 square feet $677 per parcel More than 44,000 square feet $1,016 per parcel Confidential 3

7 Sample Measures Piedmont Unified School District Parcel Tax (1): Measure B - Approved June 2, 2009 (78.37% YES) To prevent existing school funding from expiring and maintain Piedmont's excellent quality of public education by attracting and retaining qualified teachers, maintaining small class sizes and protecting instructional programs and services, including art and music, foreign language, advanced placement, school libraries, classroom technology and student counseling, shall Piedmont Unified School District continue to levy special taxes up to the amounts specified in the voter pamphlet for four years and with all funds staying locally to benefit Piedmont schools? Parcel with Single Family Dwelling 0-4,999 sq. ft. lot $1895/parcel 5,000-9,999 sq. ft. lot $2154/parcel 10,000-14,999 sq. ft. lot $2456/parcel 15,000-19,999 sq. ft. lot $2819/parcel more than 20,000 sq. ft. lot $3217/parcel Parcel with Multi-Family Dwellings Multi-family dwellings/unit, all lot sizes) $1259/unit Commercial Property 0-10,000 sq. ft. lot $3217/parcel Commercial lots greater than 10,000 sq. ft. $4812/parcel Undeveloped parcel $963/parcel Multiple parcel dwellings $2070/dwelling The Board of Education annually may increase the rates by not more than five percent (5%) above the previous year s rates and shall round the resulting rates to the nearest full dollar amounts. Sample Measures Piedmont Unified School District Parcel Tax (2) Measure E - Approved June 2, 2009 (73.21% YES) To offset the loss of state funds by providing emergency temporary local funding, shall Piedmont Unified School District levy an additional special tax up to the amounts specified in the voter pamphlet (averaging $249 per parcel) for three years to avoid teacher and staff layoffs, protect programs and counseling, and prevent other cuts to core academic programs and services, with citizens' oversight and all funds staying locally to benefit Piedmont children? Parcel with Single Family Dwelling 0-4,999 sq. ft. lot $219/parcel 5,000-9,999 sq. ft. lot $249/parcel 10,000-14,999 sq. ft. lot $284/parcel 15,000-19,999 sq. ft. lot $326/parcel more than 20,000 sq. ft. lot $372/parcel Parcel with Multi-Family il Dwellings Multi-family dwellings/unit (all lot sizes) $146/unit Commercial Property 0-10,000 sq. ft. lot $372/parcel Commercial lots greater than 10,000 sq. ft. $556/parcel Undeveloped Parcel Multiple Parcel Dwellings $111/parcel $239/dwelling Confidential 4

8 Sample Measures Emery Unified School District Parcel Tax Measure A - Approved June 5, 2007 (86.89% YES) To continue the improvement of student achievement in Emeryville schools by continuing local funding for reading, math, and science instruction; keeping class sizes small; retaining qualified and experienced teachers and school employees; maintaining classroom technology; and supporting educational programs, shall Emery Unified School District extend its expiring parcel tax at 15 cents per square foot of improved property for ten years with an exemption for seniors, an independent citizen's oversight committee and all funds staying local? Sample Measures Alameda Unified School District Parcel Tax Measure H - Approved June 3, 2008 (66.9% YES) To offset severe state budget cuts to Alameda schools, minimize school closures, and protect the quality of education, student safety, class sizes, excellent teachers and staff and to restore prioritized cuts to music, athletics, advanced placement courses, shall Alameda Unified School District levy a temporary, 4-year emergency tax of $120 per residential parcel and 15 cents per square foot for commercial/industrial parcels (see the voter pamphlet), with exemptions for seniors, citizen oversight and all funds staying local? (i) (A) On each taxable, residential parcel at the rate of $120 per year, and (B) on each taxable, commercial or industrial property at the rate of $0.15 per square foot per year (but commercial or industrial property of 2,000 square feet or smaller paying $120 per year and commercial or industrial property larger than 2,000 square feet paying a maximum of $9,500 per year). Confidential 5

9 Sample Measures Oakland Unified School District Parcel Tax Measure G - Approved February 2, 2008 (79.4% YES) To attract and retain highly qualified teachers, maintain courses that help students qualify for college, maintain up-to-date textbooks and instructional materials, keep class sizes small, continue after-school academic programs, maintain school libraries, and provide programs, including arts and music, that enhance student achievement, shall Oakland Unified School district, without increasing he current rate, continue to levy its education special tax of $195 per parcel, commencing July 1, 2009, exempting low-income taxpayers, and with all money benefiting Oakland schools? Phase II - Ballot Measure Preparation & Public Info Prepare the Measure for the Ballot Resolution calling for election 75-Word Ballot Question Full Ballot Text Implement a Public Information and Outreach Effort Raise public awareness of need Manage press coverage Engage key stakeholders Provide appropriate info-only materials to school sites Qualify for the Ballot Recommendations to Board Board Approval Work with County Elections Department t Transition to Campaign Organize Independent Campaign Committee Mobilize Volunteers Seek Endorsements Raise funds needed for campaign Confidential 6

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