Funding our Schools Ch. 2: Local School Budgets

This email is part of a series of three from MEF entitled "Funding Our Schools." The purpose of this series is to educate and empower our community as we partner together to fund our schools.

In case you missed it - Chapter 1: The State Budget

Today - Chapter 2: Local School Budgets

Tomorrow - Chapter 3: What Can You Do?

School districts must make staffing decisions in February and March of the prior year, so our schools are budgeting now for the 2024/2025 school year - even though the state's final budget won't be adopted until June 30.

Our local districts are facing fiscal pressure. Both the Moraga School District (including Los Perales, Camino Pablo, Donald Rheem, and Joaquin Moraga) and the Acalanes Union High School District (of which Campolindo is a part) are already deficit spending and plan to deploy reserves to reduce the impact on students. This cannot be a long-term strategy.

While the governor's January budget proposal (see Chapter 1: The State Budget) doesn't include any reductions to LCFF at this point, expenses continue to increase, and the lower-than-anticipated COLA will have a significant impact on expected revenues. For example, at the Moraga School District, the current proposed COLA will result in our TK-8 schools receiving about $600,000 less than they anticipated next year and about $700,000 less than they anticipated in the year after that. Governor Newsom doesn't call this a cut, but when adjusting the 3-year budget outlook, it effectively is a cut for our schools.

Below are two charts that show that MSD and AUHSD are deficit spending over the next several years. These numbers incorporate the new COLA projections but do not take into account any increases in salary for 2023-2024.

"What about Proposition 28 which is supposed to provide money for art and music instruction?"

Starting next year, an amount equal to 1% of the K-12 share minimum guarantee will be given to schools to employ staff and supplement arts education. This is subject to an annual audit.

"I've heard that schools have received one-time money. Where does that fit into this story?"

Schools have received one-time money in the past couple of years in the wake of the pandemic which has helped bridge the gap. However, there is no more one-time funding expected, especially in light of the state's anticipated budget shortfall.

Can MEF Help Bridge the Gap?

The numbers in the charts above include annual MEF grants continuing at the same level they are now: $1.6M to MSD and $950,000 to Campolindo. MEF funds its grants with money raised each year during the Giving Campaign, so maintaining the grants at this level next year requires that MEF raise sufficient money this year.

Currently, MEF donations are down. If MEF can't maintain the current grant level for our schools next year, the picture will be even more bleak. It's critical that the entire school community participate by contributing to the current Giving Campaign; we are all partners in ensuring that our schools receive the funding they need. Thank you.

Contribute Here

To Make Matters More Complicated...

Campolindo is different from the rest of the Moraga schools in that its district (Acalanes Union High School District) is "Basic Aid" or "Community Funded." This means that local property tax revenue exceeds the amount a district is entitled to from the state. When this happens, the district gets to keep the excess funding. Because AUHSD is Basic Aid, this current budget state proposal will not reduce the funding that Campo receives, but it does reduce the amount that it is entitled to from the state, which means that a larger percentage of its funding will come from local property taxes. The downside of being a Basic Aid district is that it's hard to accurately project property tax growth (and therefore revenues), the district must maintain higher reserves, and an increase in enrollment does not result in any additional funding. For Campo's total revenues, property taxes matter, but the number of students does not.

How You Can Help

Moraga Education Foundation

moragaeducation.org

MEF@moraga.k12.ca.us