Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Revenue Sharing topic
No spam. Unsubscribe anytime.
How the PTRSA would divide revenue: district consultants explain the 88/12 split
Summary
District fiscal staff described the property tax revenue-sharing agreement that underpins the proposed unification: a year-of-separation formula tied to enrollment (roughly 88% Santa Monica, 12% Malibu), protections for fund balances, exclusion of donations, and a sharing schedule through 2042 with an eventual taper to avoid a fiscal cliff.
Fiscal consultant Shengreen presented the property tax revenue-sharing agreement (PTRSA) as the core funding mechanism for a potential separation of Santa Monica and Malibu school services.
Shengreen said the PTRSA is rooted in a year-of-separation allocation that roughly mirrors student enrollment: “a split of the district roughly at 88% being Santa Monica and 12% being Malibu.” She explained that Santa Monica’s target funding would grow by 4% annually and the formula explicitly excludes donations and foundation revenues so local fundraising would remain unaffected.
The consultant told the board the agreement includes protections to ensure both successor districts have sufficient fund balance in the first years when resources are tight. Sharing is scheduled to continue through 2042, and if sharing is still required at that point the plan provides for a taper over five to ten years to avoid a sudden fiscal cliff.
District leaders said the PTRSA and associated stress tests were constructed with extensive input from departmental leaders, external consultants and advisory bodies. They said the JPA is intended to monitor and advise on the formula if fiscal triggers occur in the future.
