New Menlo Park budget dedicates $23.9M in new funds for capital improvements

What a perfect example of how education-allocated property taxes are quietly whisked away from our poorest schools and handed off to other local entities.

Four of Redwood City Elementary's sixteen schools are being closed this month. Why? Because RCSD's *current* pension liabilities have overwhelmed a budget already stretched too far, since school funding is not indexed for regional cost levels.

Imagine trying to operate a franchise here, with the same allowance for salaries, maintenance costs and services as in Fresno or Red Bluff. Local costs are 20-40% higher than the statewide average. But the least-advantaged local school districts are dependent on the state funding formula don't get a penny more. Redwood City, Ravenswood, Jefferson-Elementary, Cabrillo ...

And that Educational Revenue Augmentation Fund? It is not tax dollars held back blah blah blah. It is a share of every property-tax dollar collected in the county that is earmarked as revenue AUGMENTATION for *the least advantaged* schools in the county. But it doesn't get there because the Legislature won't recognize regional cost levels.

Why won't they? The original blueprint for California's current school funding included regional costs along with student disadvantage -- read Michael Kirst's 2008 white paper "Reforming California School Finance," outlining a more "rational" and "equitable" school finance scheme. And this wasn't a random thought of the president of the State Board of Education. Ten states include regional costs in their school finance scheme -- including Massachusetts, Florida, Texas, and New York.

Meanwhile, the city of Menlo Park gets to use an excess school funding "rebate" to pre-pay *future* pension liabilities. And the Menlo Park Fire Protection District gets to use theirs to buy up homes next to its stations *in case* they ever need to expand.

The Legislature -- Jerry Hill, Kevin Mullin and Marc Berman -- are creating poverty in the middle of our county -- destroying affordable neighborhoods for families -- by deliberately underfunding the poorer schools and overfunding other local government operations.

Thank you Jennifer Bestor for your comment perfectly highlighting the absurdity of ERAF Funds that are specifically intended to lift disadvantaged school districts being rapidly swept into other governmental priorities. Local districts are struggling and floundering now they don’t have the luxury of pre-paying pensions...they cannot even keep their doors open.

"And the Menlo Park Fire Protection District gets to use theirs to buy up homes next to its stations *in case* they ever need to expand. "

There is nothing just "in case" about these strategic property acquisitions.

The Fire District has very wisely acquired properties adjacent to six of its seven stations and two of those stations (2 and 6) have already been rebuilt incorporating those adjacent properties and the rebuilding of third station (4) will start shortly utilizing the adjacent acquired parcel. Station 1 will also be upgraded using acquired adjacent land. These station upgrades are essential for the District to be able to maintain its service levels given a steady increase in the population and square footage it protects and the impact of ever increasing traffic congestion.

In the unlikely event that the recently acquired properties adjacent to Stations 3 and 77 are not used for station upgrades then those properties can be sold with a much greater return on investment that the District could have obtained from any other legally permitted investment.

Exactly, Peter. Using "excess" Educational Revenue in our high-cost county, the Fire Department has been able to make "strategic acquisitions" and investments.

Local school districts, meanwhile, specifically those with a high proportion of disadvantaged children, have had to make endless tactical de-acquisitions -- schools, programs, staff.

Why? Because the Legislature has failed to recognize regional costs in its school funding formula. Simple as that. The Educational Revenue Augmentation Fund is there to augment funding in the poorest schools -- but can only do so to the extent of the Legislature's approved funding formula.

So Redwood City closes schools and Ravenswood cuts staff -- while local cities, special districts, and the County gloat over their burgeoning property tax coffers.

"Exactly, Peter. Using "excess" Educational Revenue in our high-cost county, the Fire Department has been able to make "strategic acquisitions" and investments.
"

Wrong. None of the excess ERAF funds returned to the Fire District have been used for property acquisitions.

"Exactly, Peter. Using "excess" Educational Revenue in our high-cost county, the Fire Department has been able to make "strategic acquisitions" and investments."


Wrong. None of the excess ERAF funds returned to the Fire District have been used for property acquisitions.

My goodness -- what did you spend it on?! This is riches beyond belief.

"My goodness -- what did you spend it on?! This is riches beyond belief."

Jennifer - why the drama?

The Fire District uses the excess ERAF funds to pay down its pension liabilities.