By Kathleen Acuff

Los Altos School District said farewell to Superintendent Marge Gratiot last week and welcomed a historic first for its budget: District teachers will contribute toward the cost of their benefits package - 5 percent of the total for 2005-2006.

Teachers further helped to balance the budget trustees adopted 5-0 June 20 by agreeing once again to forgo a cost-of-living increase. At the moment, the district expects to start next year with $3.8 million and end it with close to $3 million.

Randy Kenyon, assistant superintendent for business services, will give the school board a budget update at the first meeting in August.

“There are significant unknowns still, but the direction we’re likely to go is positive,” Kenyon told trustees.

The unknowns are substantital: the 2005-2006 contract to be negotiated with the support staff union, final health benefit costs, property tax collections for 2004-2005, the district’s ending balance when it closes its books in August and the final state budget, also expected in August.

Assumptions for the new district budget include an inflation rate of 4 percent, a 9 percent increase in services to autistic students and the transfer of $1.1 million in property tax revenue to Bullis Charter School.

Reserves are at 3.9 percent, about $1.4 million. The state mandates a reserve level of 3 percent for school districts.

The June 20 meeting was Gratiot’s last as superintendent. She retires Thursday after 18 years in the district’s top job. Tim Justus, the new superintendent, is scheduled to take over the role July 8.

Before the meeting adjourned to cut the cake decorated with the message, “Farewell to our Marge Gratiot,” board President Jay Thomas said, “This is a district of firsts. We’ve achieved test scores nobody thought possible in this state. We’re recognized for leadership across the state. … This is the first time I’ve ever seen us do a last. Marge, it won’t be the same board meeting without you.”