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 Great Recession has had two negative effects on school funding.
First, property taxes have decreased. According to County Tax Assessor’s Annual Report, Santa Clara County Tax Assessor, Santa Clara County property values fell more in the last year than at any time since the Great Depression. When property values fall, tax revenues for LGUSD fall.
The second factor is that enrollment in the LGUSD has increased. According to Richard Whitmore, LGUSD Superintendent, “We’ve grown by about 60 kids over the summer,” Whitmore said. “There are 700 enrolled at Blossom Hill Elementary, and it was designed for 600. I barely have space for an additional kid.”
Declining Revenues + Increased Enrollment = Greater Need for LGEF Funds!
“My family moved to California last year and, like most families, we evaluated potential communities based on school quality and community support for education. As I dug deeper into school funding in California, I concluded that the districts that had low class sizes, provided the greatest variety of programs, and performed best were those that had vital non-profit foundations to supplement state funding and protect the district against budget declines. Through volunteering with LGEF, I hope to sustain and protect educational excellence in Los Gatos.”
-Catherine Plaxton, Blossom Hill School Co-Captain and mom