Palo Alto Unified presents $340M budget picture; board files unaudited 2023–24 actuals and adopts Education Protection plan

Palo Alto Unified School District officials presented a detailed financial overview at the Sept. 10 board meeting, framing the district’s 2024–25 budget and winning board approval to file the 2023–24 unaudited actuals.

Finance staff reported the district’s total budget for 2024–25 stands at $340 million and noted that roughly 83% of revenue comes from local property taxes under California’s local control funding model. On the expenditure side, staff said about $296 million — roughly 87% of the budget — is committed to personnel costs. Staff emphasized the district’s investments in specialized student supports, including counselors, psychologists, occupational and speech therapists, mental health teams and transitional programs.

The presentation clarified several snapshot figures: federal funds account for about 1% of the district’s revenue, and staff highlighted that the district’s ending 2023–24 general fund balance increased by $3.8 million to $17.8 million. District staff also reported an increase in actual revenue of about $3.5 million compared with estimates for the 2023–24 year.

Looking ahead, staff said projected additional revenue of $6.4 million for 2024–25 is largely offset by planned new expenditures of $19.9 million tied to staffing additions, negotiated compensation increases and rising health and welfare costs, producing a multi‑year projection that reduces fund balance over time. One board member flagged use of a 3.5% projected property tax increase for the current year (versus 2% historically) and asked for careful oversight as the district works to close structural gaps.

After the presentation, the board moved, seconded and approved a package of actions: filing the 2023–24 unaudited actuals with county authorities, adopting the associated resolution, approving the Education Protection Account spending plan and receiving the budget update. The approval was recorded as passed with the student board member casting a preferential vote alongside the board members in favor.

The finance team said it will return with interim reports and an audited financial statement: first interim in December, audited financial statements for 2023–24 in January, and budget development for 2025–26 to occur Feb.–May ahead of adoption in June.

Board members and multiple commenters asked staff to publish the budget presentation on the district website for public access and to provide follow‑up detail on notable line items, including the approximately $24 million listed for special education aides.

The board’s vote to file the unaudited actuals and adopt the spending plan were taken as part of the action items at the meeting; staff stressed continued monitoring of the district’s multi‑year projections.