Superintendent’s Message - April 2007
CHALLENGES ARE OPPORTUNITIES
At our most recent Board of Trustees finance study session, our Community Financial Advisory Commission (CFAC), a Superintendent-appointed volunteer committee of parents and citizens, shared their most recent findings about the District’s financial health. Simply put, two ‘financial’ drivers over which we have no control have a significant impact on our budget. They are property taxes and enrollment. Why these two? Because our funding as a ‘Basic Aid’ district is primarily based on property taxes and we do not receive additional funds as our enrollment increases. Our general financial health and ability to make continuous program improvements are highly sensitive to these two drivers.
What the financial model developed by CFAC shows is that when enrollment is stable or declining and property taxes increase at more than modest rates, our District budget benefits. When enrollment increases and property taxes decrease or increase at a rate less than anticipated, our District budget suffers. The latter scenario is what we are experiencing right now and what is projected for the short-term future. Our enrollment from school year 2006 and projected into 2008 has and will increase at a rate that will require us to hire eleven to twelve new classroom teachers to keep pace. We will also need to add support staff, find or purchase classroom space, purchase basic equipment, technology, materials, and supplies to support those additional students and staff. This three year additional cost is projected to exceed $1.5 million dollars. Had not it been for enrollment increases, those funds would have been able to support strategic program improvements and enhanced staffing, including more instructional support for kids of all abilities.
The other significant financial driver, the rate at which property taxes for our District will increase, is expected to slow. Our projected growth in property taxes as reported by Marin County for budget year 2006-2007 was 7%. For budget year 2007-2008, Marin County has estimated an increase of 5.75% for our school district. For us, the changes in these financial drivers mean that projected expenses will be higher than projected revenues. I will be working with the Board of Trustees, the newly formed strategic planning committee, and our fundraising partners, Kiddo! and the PTAs, to identify our opportunities to increase revenues and/or reduce expenses.
As I have come to know this community as one that supports education and steps up with great solutions, I am looking at this challenge as an opportunity. I have every confidence that our Board, administration, staff, parents and community want the very best for kids and that all of us are willing to pull together to make that happen. We have a great educational program in Mill Valley, one supported by an active, smart and engaged community of staff, parents, and citizens. I look forward to keeping you informed of the District’s financial health and soliciting your input as the budgeting process continues. I wish you well as our schools recess for spring break.
"Problems are opportunities in work clothes." Ralph Kaiser
Ken Benny