Revenues rise, but so Revenues rise, but so (July 06, 2005)do costs for high school district

The Sequoia Union High School District -- whose schools include Woodside and Menlo-Atherton -- expects several million dollars in new money from property tax revenues during the budget year that started July 1.

Much of that will be eaten up by new costs, including $1.8 million for No Child Left Behind programs, $1.2 million for charter school support, and possibly $750,000 more for teacher pensions.

And beyond the current year, the district faces even higher costs for charters schools and health care for retired district employees.
Budget approved

The budget approved unanimously by the school board June 29 expects revenues of $81.5 million and expenses of $83 million during the fiscal year that started July 1.

The $1.5 million shortfall would be paid for from reserves, which now total $5.7 million, said Ed LaVigne, the district's financial officer.

The budget conservatively expects $59.4 million in property tax revenues, an increase of about 6 percent from the previous year.

However, the increase may actually be much higher. The San Mateo County Assessor's Office projects an increase of around 9 percent, but final figures probably won't be available until October, said Deputy Assessor Terry Flinn.

If the school district's estimate is low, the additional money will be put into reserves, said Mr. LaVigne.
New spending

The $1.8 million related to the No Child Left Behind Act will pay for new textbooks and new teachers to help freshmen and sophomores whose state test scores show they're behind in their reading and math skills.

Another $1.2 million will go to support about 200 charter-school students at Redwood City's High Tech High Bayshore for this school year, with the annual payment growing as enrollment grows.

About $750,000 is reserved for a state budget proposal by the governor to require school districts to take over payment of the state's 2 percent contribution to teachers' pensions, said Mr. LaVigne.
Beyond this year

In 2007, about $2.4 million more will likely be needed to support some 400 charter school students from Summit Prep High School, also in Redwood City.

A new annual liability of about $1.7 million to pay for health care for retired district employees looms in 2008.

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