City Property Tax Collection Is Falling

Local property tax collections are expected to fall this year, offering tangible proof of a slowing economy while also putting a strain on the Beverly Hills Unified School District's budget.

BHUSD officials were notified Monday by the Los Angeles County Office of Education that property tax collections for the current fiscal year, which ends June 30, would fall by $1.23 million to a projected $31.45 million. Until this year, property tax collections in the city had been steadily rising.

Because BHUSD is a , it gets state funding directly from local property tax collections. Most California school districts get their funding based on a per-pupil basis.

The reduced tax collection is just the latest of several hits that the district has taken as California’s financial crisis continues. Just last month, BHUSD had to institute additional layoffs after a state budget committee directive required basic aid school districts to make additional cuts to next year’s budget.

The property tax reduction does not mean that any additional layoffs will be needed, Board of Education members said at their Tuesday meeting. Recent policy changes have helped to erase much of the $1.23 million deficit.

As Patch has reported, this June, aside from its limited English as a second language program. This will save an estimated $500,000.

Also, the district expects to be able to shift some legal costs pertaining to its fight against the Metropolitan Transportation Authority from the general fund to Measure E funds. As Patch readers know, the district has authorized more than $400,000 in spending to fight an MTA proposal to as part of the .

Board Vice President Brian Goldberg told the PTA Council on Tuesday that BHUSD’s legal counsel has advised that the district can shift some subway-related expenses to , the $334 million bond voters passed in 2008 to modernize the city’s schools. This is because if the subway is routed under the high school, it would increase expenses associated with planned Measure E renovations at BHHS, according to the legal opinion.

“At our next board meeting [scheduled for May 5] we will vote to move between $230,00 and $300,000 from the general fund to Measure E for spending on the MTA fight,” Goldberg told Patch. “We are also looking at other services and seeing if we can keep costs down.”

Check back with Patch for continuing coverage of the BHUSD budget.

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