San Jose Unified Schools Switch to Basic Aid Funding
By Sydney Teves
By Sydney Teves
Rising property values in the surrounding area and falling enrollment could mean increased funding for San Jose Unified School District sites and employees, but the rising property values create other concerns for local teachers and families.
Up until this year, SJUSD has been a “Revenue Limit” district, which meant that local property taxes weren’t enough to meet the basic minimum funding requirements, and so funding came from California.
But this year, SJUSD transitioned to a new system of funding known as “Basic Aid.” This system compares the property tax base within the district’s boundaries with the number of enrolled students. If the property taxes the district collects exceed the minimum funding level, they get to keep the remaining money. This year the district will exceed its state minimum funding by around $49 per student when the district collects about $11,000 per student.
The change happened this year for several reasons. In the last few years, the estimated value of property in the district has grown faster than similar properties statewide and at the same time, the number of students in the district has decreased partly due to rising cost of living in San Jose. In the last nine years the district has lost about 26% of its enrollment, which means that the amount of property tax collected per student has been increasing ever since.
According to Realtor.com, the median home value in San Jose has risen 15.1% in the past year, and averages between $1.3 and $1.4 million.
San Jose Teachers Association President Patrick Bernhardt notes that there are two views on the increasing property taxes. On one hand, people who already own homes are happy to see the value of their property increase, but on the other hand, teachers and staff who do not yet own property have a harder time finding an affordable place to live, therefore more likely to lose them and potential additions to the campus.
“They are frequently faced with the threats of layoffs, staffing reductions, and while there are individual schools in the district that are experiencing significant changes in staffing, the district as a whole is insulated against that because the amount of money that we’re getting per student is growing,” said Bernhardt.
As property taxes continue to increase, and the number of students enrolled in the district decreases, the amount of money the district receives increases. While this is good news, the ever decreasing number of students is still a concern.
“The declining enrollment that is being experienced in other parts of Santa Clara County is a significant threat to the to the viability of some schools and some districts, there are districts around the Bay Area that are looking at not an obvious, not small probability of declaring bankruptcy as a result of the challenges that are brought on by declining enrollment. And this will save us from all of that,” said Bernhardt.
Physics teacher Colleen McDonough described the funding as a step in the right direction, but for the wrong reasons. She always embraces funding but wishes it would be spent well instead of wasted.
“$49 out of $11,000 is a differential that I don’t think will make a difference,” said McDonough. “I think philosophically, I like the idea that it’s not based on average daily attendance because my operating costs don’t go down at all if students are absent. So from that point of view, I like it conceptually, but I think it’s not a big enough difference.”
Up until this year, SJUSD has been a “Revenue Limit” district, which meant that local property taxes weren’t enough to meet the basic minimum funding requirements, and so funding came from California.
But this year, SJUSD transitioned to a new system of funding known as “Basic Aid.” This system compares the property tax base within the district’s boundaries with the number of enrolled students. If the property taxes the district collects exceed the minimum funding level, they get to keep the remaining money. This year the district will exceed its state minimum funding by around $49 per student when the district collects about $11,000 per student.
The change happened this year for several reasons. In the last few years, the estimated value of property in the district has grown faster than similar properties statewide and at the same time, the number of students in the district has decreased partly due to rising cost of living in San Jose. In the last nine years the district has lost about 26% of its enrollment, which means that the amount of property tax collected per student has been increasing ever since.
According to Realtor.com, the median home value in San Jose has risen 15.1% in the past year, and averages between $1.3 and $1.4 million.
San Jose Teachers Association President Patrick Bernhardt notes that there are two views on the increasing property taxes. On one hand, people who already own homes are happy to see the value of their property increase, but on the other hand, teachers and staff who do not yet own property have a harder time finding an affordable place to live, therefore more likely to lose them and potential additions to the campus.
“They are frequently faced with the threats of layoffs, staffing reductions, and while there are individual schools in the district that are experiencing significant changes in staffing, the district as a whole is insulated against that because the amount of money that we’re getting per student is growing,” said Bernhardt.
As property taxes continue to increase, and the number of students enrolled in the district decreases, the amount of money the district receives increases. While this is good news, the ever decreasing number of students is still a concern.
“The declining enrollment that is being experienced in other parts of Santa Clara County is a significant threat to the to the viability of some schools and some districts, there are districts around the Bay Area that are looking at not an obvious, not small probability of declaring bankruptcy as a result of the challenges that are brought on by declining enrollment. And this will save us from all of that,” said Bernhardt.
Physics teacher Colleen McDonough described the funding as a step in the right direction, but for the wrong reasons. She always embraces funding but wishes it would be spent well instead of wasted.
“$49 out of $11,000 is a differential that I don’t think will make a difference,” said McDonough. “I think philosophically, I like the idea that it’s not based on average daily attendance because my operating costs don’t go down at all if students are absent. So from that point of view, I like it conceptually, but I think it’s not a big enough difference.”