March 6, 2023
Mr. Walukiewicz, Assistant Superintendent of Business, presented the 2022-23 2nd Interim Financial Report, which was unanimously approved by the board. Property tax growth has exceeded expectations while expenses have been less than anticipated, resulting in a balance that’s about $2 million higher than originally budgeted. A few staff positions that were included in the budget proposal went unfilled, saving $604,000. The amount transferred to Bullis Charter School was also $122,444 below estimate. Special Education is now tracking to cost the district $11.1 million instead of the $12 million budgeted. While the nearly $1 million in savings is helpful, the amount of general fund dollars allocated to Special Education is still significantly higher than the $7.8 million spent in 2020-21. (The district receives partial funding for Special Education from state and federal sources, but the program requires millions more from the general fund to operate.)
Despite the district’s strong fiscal position at this time, Mr. Walukiewicz also highlighted several areas to monitor in his follow up presentation on financial outlook. High inflation has resulted in goods and services costing more across the board. The district is pleased to have reached a tentative agreement (pending board approval) with the Los Altos Teachers Association. The new agreement aims to keep salaries and benefits competitive with neighboring districts, though doing so will increase expenses. The number of classified staff has also increased from 175 pre-pandemic to 203 currently. Staffing changes will be necessary to bring numbers closer to historical levels. Facility needs have also become more pressing as both the 3-Year Deferred Maintenance Plan and 10th site remain unresolved. In addition, the Universal Meals program mandated by the state continues to be underfunded and will cost the district an estimated $1.1 million annually.
The board approved the expenditure plan for the Art, Music, and Instructional Materials Discretionary Block Grant which will cover one-time expenses in the district budget such as updating technology and equipment. The current apportionment is approximately $2.1 million, though it remains to be seen in May during the Governor’s Budget Revise whether some of those funds may be clawed back as detailed in the February 2023 observer report.
Although the board expressed their regrets, they ultimately voted to approve the elimination of two classified nursing staff for the 2023-24 school year. Despite the layoffs, the district still has two more nurses on staff than it did before the pandemic.
Stella Kam, Observer