Palo Alto schools review $33 million budget cuts after parcel tax rejection

The Palo Alto Unified School District is reviewing possible budget reductions totaling $33 million for the 2027-28 school year, according to The Stanford Daily. This follows the rejection of Measure B by voters, which would have raised about $14 million through a parcel tax, marking the first such rejection in 22 years for the district.

The district’s staff salaries and benefits increased by approximately $35 million compared to the budget adopted in June, partly due to recent raises of 10.4% for teachers and 10.2% for non-teaching staff approved after union negotiations, The Stanford Daily reported.

To address the budget shortfall, the district hired School Services of California, a Sacramento-based consulting firm, to review the proposed cuts. The firm began its work on October 1, with a goal to reassess the $33 million figure by the end of the month and present findings to the school board by December 15.

The school board has established three guiding values for the reductions: protecting classroom instruction, avoiding disproportionate impacts on students with disabilities and special needs, and preserving the range of programs offered. Superintendent Jason Glass said staff are preparing a list of potential reductions based on these priorities.

The district plans to vote on the budget reductions in January 2027, with layoff notices due by March 15. The board is also considering placing a new parcel tax measure on the March ballot to help address funding challenges, according to Palo Alto Online.

Board Vice President Rowena Chiu noted the difficulty in finding $33 million in cuts without affecting classrooms and emphasized the board’s responsibility to mitigate impacts. Chiu also proposed selecting an additional firm to conduct a budget review at a September meeting.