Parcel Tax Renewal 2026

Palo Alto Unified School District (PAUSD) provides a world class education to local
students and local schools consistently rank among the best in the State and the nation.
Exceptional teachers, innovative programs, dedicated parents and strong community
support all contribute to high levels of student achievement.

PAUSD schools are funded primarily through local property taxes, supplemented by limited state and federal funding and a voter-approved parcel tax first enacted in 2001. The parcel tax now provides nearly $17 million per year in locally controlled funding that cannot be taken by the State or federal governments. However, this funding is set to expire in 2027.

To preserve local school funding and prevent cuts to teachers and academic programming, the Palo Alto Unified School District is considering placing a parcel tax renewal measure on the June 2026 ballot to renew funding at the current rate.

If approved by voters, proceeds from a proposed renewal measure could be used to:

• Attract and retain highly qualified teachers
• Maintain reading, writing and language programs
• Continue advanced programs in science, technology, engineering and math
• Maintain manageable class sizes
• Prepare students for college and in-demand careers
• Keep instructional materials up-to-date

A potential parcel tax measure would renew dedicated school funding at the current rate.

The parcel tax renewal measure would extend the existing $941 local schools parcel tax for an additional seven years without increasing the tax rate beyond the current 2% annual inflation adjustment.

Yes. If approved by voters, the proposed renewal measure would continue to be subject to fiscal oversight, including:

• All money would be controlled locally and could not be taken away by the State or federal governments
• Independent citizens’ oversight and mandatory annual audits would help ensure that funds are spent as intended by voters
• Homeowners aged 65+ would continue to be eligible for an exemption from the cost
• No money from the renewal measure could be used for administrators’ salaries, benefits or pensions

Yes. Homeowners aged 65+ would be eligible for an optional exemption from the cost of the measure. Those currently exempt would not need to reapply. Low income homeowners with disabilities that qualify for federal SSI and SSDI benefits are also eligible for an exemption.

If the tax is not renewed, PAUSD would have to cut nearly $17 million in annual funding that currently supports teachers and academic programs, which could require cuts including teacher layoffs, reduced academic programs, and larger class sizes.

In each year since parcel tax funding was first approved by voters in 2001, an independent citizens’ oversight committee has reviewed the use of fund and reported to the public that the funds have been spent in accordance with the terms of the measures. These reports can be viewed on the Parcel Tax Oversight Committee page.

PAUSD’s parcel tax funding was first approved in 2001 and renewed in 2005, 2010, 2015 and 2020. Unless renewed by voters, this funding will expire in 2027 and nearly $17 million in annual funding will need to be cut from the budget.

To learn more about the District’s plans to maintain local funding for PAUSD schools visit the additional resources below. To ask questions please contact Lynette White
at lwhite@pausd.org.