Parcel Tax Renewal 2026

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 continue local school funding and help prevent cuts to teachers and academic
programming, the PAUSD Board of Trustees recently voted to place Measure B, a parcel tax renewal measure, on the June 2026 ballot to renew local school funding.

Due to careful budget management and strong emergency reserves, PAUSD is proposing a reduced parcel tax rate of $800 per parcel for four years. Reducing the annual parcel tax rate from $941 to $800 and freezing the rate for four years (with no inflation increases) seeks to balance community investment in local schools with the impact on local taxpayers. The proposed reduced tax rate for the parcel tax renewal allows PAUSD to maintain current academic programs, class sizes, and teacher and staffing levels. Without renewal, the current parcel tax will expire next year, eliminating this local funding source and requiring cuts to academic programs, teachers and staff.

If approved by voters, proceeds from the Measure B 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
• Support at-risk students

Measure B will renew local school funding at a reduced tax rate of $800 per parcel for four years. Thanks to careful budget management, PAUSD is seeking reauthorization for a reduced parcel tax rate while maintaining current levels of programs and services for students.

Yes. If approved by voters, Measure B will 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 Measure B could be used for administrators’ salaries, benefits or pensions
• This parcel tax will be at a rate lower than the current tax

Yes. Homeowners aged 65+ would be eligible for an optional exemption from the cost of Measure B. 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.

PAUSD provides quality education in transitional kindergarten through 12th grade and adult education in 20 schools serving the City of Palo Alto, portions of Los Altos Hills and Stanford.

Without Measure B, PAUSD would lose approximately $15 million in annual funding that currently supports teachers and academic programs. Within three years, PAUSD's currently healthy emergency reserves would be depleted, which would require the Board of Education to consider deep 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.