By Traci Newell

The Los Altos School District Board of Trustees unanimously adopted a projected budget for the 2006-2007 school year at its June meeting.

General-fund revenues are estimated at $38.4 million, about $9,255 per student, a 4.9 percent increase. General-fund expenditures are estimated at $37.9 million, about $9,143 per student and $192,000 per classroom, up 2.9 percent.

The Los Altos district is a revenue-limit district, which means that funding consists of a combination of property-tax collections and state aid. Funding has grown an average of 6.4 percent since 2002-2003. Growth in funding is directly related to cost-of-living adjustments (COLA) from the state and enrollment growth within the district.

The COLA, set at 5.18 percent, is the increase in per-pupil funding from the state. The per-pupil funding adjustment for the coming school year reduces the per-pupil funding deficit from the state from 0.6 percent to 0.29 percent.

Randy Kenyon, assistant superintendent for business services, said the district expects to remain a revenue-limit district and to stay on the cusp of basic-aid status for the next three years. A district is designated a basic aid district when its local property tax revenues exceed the the amount of the revenue-limit formula. Kenyon said the district is within $100,000 of returning to basic-aid status.

Next year, however, he expects the district to be $700,000 or more away from basic aid. Because of the per-pupil COLA increase and enrollment growth (2.8 percent for next year), the revenue limit is accelerating faster than the district’s expected rise in property tax income (6.4 percent for next year).

Kenyon said a possible budget increase of as much as $580,000 depends on further state adjustments, deficit reduction and equalization aid.

Relocating Bullis Charter School will cost the district an estimated $1.2 million and is included in general-fund expenditures. For further information on relocation on relocation alternatives for Bullis Charter School, see page 1.

Improved technology, one of the district goals adopted last month, could draw on the district’s reserves. Staff salaries will increase 1 percent, a $250,000 expense.

Kenyon said the budget could change slightly once 2005-2006 property-tax data is available. Also, collective bargaining with employee groups is not completed, and the district is waiting on a state budget settlement. An official balance is expected in August.

Kenyon said that all funds were balanced, with operating reserves of 4.16 percent.