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Palo Alto Unified board approves first interim budget certification, separation incentives and $1.5 million master‑plan budget
Summary
Trustees approved a positive first‑interim certification, budget revisions, voluntary separation incentive programs, a $1.5 million master‑planning budget contract with CAW Architects and a $1,357,711 construction management agreement for Green Middle School.
The Palo Alto Unified School District board voted Dec. 17 to certify its first interim budget and to approve a series of related financial and facilities actions.
Finance staff presented the first interim report and recommended three actions: waive the two‑meeting rule for timing reasons, certify the district can meet its financial obligations for the current year and the next two years, and approve listed budget revisions. The presentation reported projected property tax growth of 4.88% (an increase of 1.38% over the adopted budget), an overall increase in general fund expenditures of about $18 million (5.3%), a $2.8 million reduction in classified salaries reclassified as contracted services, and an $11.1 million increase in other outgo tied to a board‑approved increase to a Basic Aid reserve. The staff projection shows a five‑year decline in fund balance from $107.9 million in 2024–25 to $81.9 million in 2028–29 under current assumptions; salary increases negotiated in future rounds were not yet included.
The board waved the two‑meeting rule and adopted the certification and budget changes. Trustees asked clarifying questions about the property‑tax assumption and the district’s assigned reserves.
The board also approved voluntary, one‑time employee separation incentive programs covering eligible certificated and classified employee groups, subject to memoranda of understanding and ratification by bargaining units.
On facilities, trustees authorized a master‑planning process to inform long‑range facility needs and potential future bond planning. The board established a master plan budget of $1.5 million funded from the bond reserve and approved engaging CAW Architects; staff said the proposed contract amount is just under $1.2 million and described an 18‑month planning process to prepare for a potential 2028 bond.
Separately, the board authorized a construction‑management services agreement for the Green Middle School transformation project with TQ Construction Management for $1,357,711; staff said the firm was selected because it has available capacity and the project is scheduled to begin construction in late winter/early spring.
All actions were moved, seconded and recorded as approved during the meeting.
