After hearing an assessment of the district’s finances on Tuesday night, Palo Alto Board of Education members say they will work to incorporate pending cuts in state funding.

Chief Business Officer Kathy Mak noted that the governor recently mentioned a 3.9 percent decrease in state revenue funding for schools in the 2009-2010 school year. This reduction will follow this years’ 3.6 percent decrease in revenue funding.

“[At first] This seems like a minor impact in revenue limit reduction,” Mak said. “A 3.6 percent reduction this year and next year would mean a $100,000 reduction to revenue funding.”

However, Mak added, the amounts actually cut often end up very different than the cuts initially approved by the governor. What was initially at 3.9 percent cut may end up significantly higher.

“As we have seen this year the final approved cuts are different from what the governor initially approves,” Mak said.

Mak mentioned that this year’s property tax revenue has been surprisingly high, exceeding last year’s revenue by 11 percent.

“Our property tax revenue is very strong this year,” Mak said. “For the current year, our property tax growth is 11 percent greater than last. It is $984,296 over the projection.”

This increase in property tax revenue was due partially to a greater unsecured roll collection. Unsecured roll is the actual amount of property tax collection, according to Mak.

“We increased $389,000 in unsecured roll collection,” Mak said. “This is very unusual, because it would mean that this year the actual collection is higher.”

As for next year, statewide property tax revenue is projected to lower by .71 percent, according to Mak. However, Palo Alto values are significantly higher, and are expected to grow by 3 percent.

Finally, Mak noted that all current budget projects are temporary, and still subject to much change.

“In August, we will have a more reliable estimate on the 2009-2010 budget,” Mak said. “Much is still unknown at the state level.”

The board will continue its discussion at its next meeting on Tuesday, June 9.

For more information about the meeting, click here.