School Funding 101
Los Gatos Union School District is a basic aid district.
What does that mean? A basic aid school district is one in which the district’s per pupil property tax revenue exceeds its per pupil revenue limit.
For basic aid districts, the state does NOT provide any general purpose funding, instead LGUSD receives all of their general purpose funding from local property taxes. Sometimes basic aid districts are also referred to as community funded districts.
A basic aid district has no control over the revenues it receives from the property tax. Property tax collections can vary from year to year, depending upon local economic conditions, sales of commercial, industrial and residential property, conversion of property to higher value parcels, and reassessments (including downward reassessments during down markets). Unlike revenue limit districts, basic aid districts do NOT receive funding based upon the number of children enrolled.
For LGUSD, the recession has had two negative effects on school funding. First, property taxes have decreased. When property values fall, tax revenues for LGUSD fall. Second, enrollment in the LGUSD has increased.