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Woodland Hills warns of multimillion-dollar shortfall; board told tax increase and federal funding uncertainty loom
Summary
Finance staff reported a projected revenue gap tied to falling assessed values and common-level ratio adjustments, said the district may need a 1.3-mill tax increase to break even, and warned that federal funding streams (including Title and cafeteria funds) are uncertain because of staffing and policy changes at the federal level.
Jill, the district finance presenter, told the board the district faces a significant revenue shortfall driven primarily by declining assessed values and a drop in the common level ratio to 54%. She said the district would need a 1.3-mill tax increase merely to recoup the local tax revenue received this year and warned the district could lose roughly $2,000,000 in tax revenue absent a rate increase.
Jill and other staff described added revenue uncertainty tied to state and federal funding. Staff said the U.S. Department of Education offices that administer federal education funding are understaffed, creating uncertainty about the timing and availability of Title funds that pay for roughly 20 staff positions in the district. “They said that all of their contacts at the federal government having to do with the Department of Education are gone…nobody's answering the phone,” Jill said.
She noted the district recently completed a federal audit with very positive results, but cautioned that federal program cuts or delays could affect programs and food-service funding. ESSER funds previously received are safe, but ongoing Title and cafeteria funding remain uncertain. Jill said projected combined pressures could lead to a $2,800,000 operating shortfall in the current planning horizon.
Cost pressures include a projected 10% increase in health insurance, rising retirement contributions and higher transportation costs driven by more buses and drivers. Staff also discussed steps to reduce costs, including reviewing building use and rental arrangements (the West building and library leases), adjusting rents or utilities with tenants, and analyzing potential sales or auctions of surplus equipment.
Board members asked about possible program and personnel cuts. Jill said staffing reductions are the main lever to close large budget gaps and warned that cutting positions is complicated and can be reinstated by future administrations if not handled carefully. She recommended ongoing finance-committee work and preparations to present options to the full board.
No formal vote was held; staff requested the board continue finance-committee work and prepare for near-term decisions on taxes, staffing and program priorities.
