School board puts reduced parcel tax on June ballot

"For months, the school board has been debating whether to put the parcel tax, which will expire in 2027, back on the ballot this June to extend it. Palo Alto Unified has benefited from the parcel tax since 2001. The current tax is set at $904.92 per parcel, generating approximately $16.5 million per year and is typically used by the district for staffing, compensation and other student-focused programs. The district's total budget for the 2025-26 year was $354 million, according to documents."

"Former board member Todd Collins told the board that, because of an increase in property tax revenue, the district no longer needs the parcel tax because traditional property taxes have increased by a greater amount than what the parcel tax generated. One of the driving considerations of including the tax stems from the district negotiating union proposal that calls for increasing salaries by 28% for teachers and 47% for non-teachers, according to Superintendent Don Austin."

The Palo Alto school board unanimously voted to place a parcel tax renewal on the June ballot. The renewal would set the tax at $800 per parcel for four years, down from the current $904.92 per parcel. The current parcel tax has been in place since 2001 and generates about $16.5 million annually for staffing, compensation and student programs. The district's total budget for 2025-26 was $354 million. Some argue that increased traditional property tax revenue has reduced the need for a parcel tax. A union negotiating proposal seeks 28% raises for teachers and 47% for non-teachers and is a key factor in putting the renewal on the ballot.

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