Menlo Park schools budget restores programs Menlo Park schools budget restores programs (June 30, 2004)

By Marjorie Mader
Almanac Staff Writer

Menlo Park district schools are back on track with a $20.4- million operating budget for the 2004-05 year that restores programs and specialist positions reduced or eliminated a year ago due to a significant drop in state funding.

The budget, approved by the school board at its June 23 meeting, is nearly $2 million greater than the $18.5-million budget approved a year ago.

The positive outlook for the Menlo Park district's four schools results primarily from increases in local funding and continued community support. Among the developments:

** Property tax revenue is projected to increase 6 percent to $12.2 million. It provides 57 percent of the district's income.

** The three parcel taxes -- two approved by voters as recently as last November -- will generate almost $4 million dollars, about 19 percent of the district's income. These funds go primarily to teachers' salaries and benefits, class-size reduction, reading specialists, remedial support for students, and staff development.

** A record $1.2-million grant from the Menlo Park-Atherton Education Foundation will provide 5 percent of the district's income. The money funds school libraries, hands-on science, technology, music programs, and the Jeanie Ritchie grants for teacher innovation. Part of the grant is $100,000 in start-up money for a staff-development initiative that focuses on excellence in teaching.
Property taxes

The district's growth in property-tax revenue has a major impact on the district's continuing financial health, said Diane Head, the district's chief business official. Menlo Park, classified as a "basic aid" district, receives $2.5 million more than it would if it were a "revenue limit" district, she said. A basic-aid district is able to keeps its property-tax revenues that are in excess of the calculated revenue limit. A revenue-limit district receives its funds from the state based on enrollment and a state-calculated formula for its revenue limit.

The Menlo Park district enrollment is projected to grow from 2,019 last year to 2,040 for the 2004-05 school year. An additional classroom teacher is budgeted for each of the schools, and a full-time reading specialist for Oak Knoll and Encinal schools. The librarian position will be increased to full-time at Laurel and Encinal. Class sizes will remain at 20 students in grades 1-3, and at 24 students in kindergarten and grades 4-8.

The new budget and multi-year budget projections include salary increases for teachers and staff that are approximately 2.5 percent for teachers, costing the district $300,000 a year; and 1.5 percent for classified employees, aides, clerks and custodians, costing the district $40,000 a year.

The budget projects a 3.5-percent increase in property-tax revenue during the year, and a 2 percent increase in the consumer price index.

People costs -- salaries and benefits -- account for 83 percent of the budget and total $16.9 million. Services and operating expenses amount to $2.4 million, or 12 percent of the budget. The total for textbooks, books, supplies and non-capitalized items is $650,000, or 3 percent of the budget.

Some unanticipated expenses were a 40 percent increase in workers' compensation costs, adding $86,000 to the budget; and a doubling in state unemployment insurance rates, at an additional cost of $48,000.

Additional budget information is available at the district office, now housed temporarily at 125 Constitution Drive, east of U.S. 101 and off Marsh Road. The district office phone number remains the same: 321-7140.

E-mail Marjorie Mader at mmader@AlmanacNews.com

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