Financial Overview

Maintaining the high standards for education we expect for our students is a community effort. The Kentfield School District is a Basic Aid, or community funded, district in which state and federal government funding make up a small percentage of all funding. Local property taxes, parcel taxes, and other local sources make up most of our funding, including a percentage of the district's funding which comes from parent and community donations to KIK and our school PTAs.

Property Taxes

Each public school district in California is classified as either a Local Control Funding Formula (LCFF) or Basic Aid district, based on whether property taxes generated in the district reach a particular per student amount. In an LCFF district, the local property taxes do not meet the per student amount, and the State provides the remainder of funds needed. Kentfield School District is a Basic Aid district, meaning our local property taxes meet the per student amount, the State provides only a nominal amount per student to our district, and we retain any local property taxes beyond the per student amount. As a result, state and federal funding accounts for a small portion of our district's budget.

Parcel Tax

Kentfield voters first approved a Parcel Tax in 1987 and since then Parcel Taxes have been used in this District to keep class sizes low, upgrade technology, expand and maintain music, art, and drama programs, and fund school libraries. Local funding from the Parcel Tax provides 25% of the Kentfield School District's budget. Find out more here.

The Parcel Tax rate approved in March 2018 took effect on July 1, 2018 and expires on June 30, 2028. Learn more about the Parcel Tax here.

Parent and Community Donations

A portion of district revenue comes from parent and community donations to our funding partners, KIK and our school PTAs.

Measure D Bond

Passed in November 2015, Measure D dedicates funding for construction and renovation projects to modernize facilities, address enrollment growth, and enhance safety features. Learn more about Measure D here.

Measure E Bond

Just passed in November 2024, Measure E dedicates funding for construction and renovations projects to keep our schools safe, warm and dry, including roof repairs, upgrades to energy, plumbing and electrical systems, and additional safety improvements.

What are the guiding principles for the district when making budget decisions, including potential budget adjustments?

The KSD budget decision-making process is thoughtful and thorough, and involves the input of numerous stakeholders. The principles that guide stakeholders throughout this process are:

• Optimizing student experience
• Long term financial health of the district
• Engagement with the community stakeholders

What is the district budget process, how is the budget monitored, and how is the budget developed for each upcoming year?

The initial budget is based on estimated revenues and expenses, and updated throughout the year with actuals.

The district develops a budget for each fiscal year, which runs July 1 - June 30. The budget outlines the estimated revenue and expenditures for that fiscal year, and includes projections for revenue and expenditures for future years. The budget is approved before the start of the new fiscal year on July 1, then is monitored and adjusted as necessary throughout the school year based on actual revenue and expenditures.

There are two checkpoints, first and second interim, during the fiscal year when the district reviews the revenues and expenditures to date. A formal report is provided outlining the budget status and specifying any adjustments that are required.

In December, the Board receives the First Interim Report in public session, which reflects the district’s expenditures through October 31, and provides projections of revenue and expenses for the balance of the fiscal year.

In March, the Board receives the Second Interim Report in public session which reflects actual revenues and expenditures through January 31, and projects revenue and expenses through the balance of the fiscal year.

In April, May and June the district, in coordination with the Board, develops a preliminary budget for the following fiscal year. The draft budget is based on the current fiscal year budget, actual revenue and expenses, information from the state on required programs and funding, current and projected enrollment and staffing needs, program needs and other factors. The public is welcome to interact with the district and board and provide feedback on the budget during this time.

What is the district’s reserve and why is it important?

KSD’s current reserve is 11.47% per the 2024-2025 First Interim Report however, it is expected to decrease to 8.99% by fiscal year 2025-2026.

The California Education Code requires all district budgets to have an expense item for district reserves. These are funds that are not assigned to be spent on programs, staffing, etc., but rather are funds held in reserve for unanticipated expenditures or revenue shortfalls, e.g. recession, global disasters.

The California Education Code requires that school districts have a specific reserve fund based on their enrollment. The KSD’s required reserve is at least 3% of our total budget based on a projected enrollment of 1050. Although the state requires a minimum reserve, state education economic advisors recommend district reserves to be at a significantly higher rate, typically ranging between 17 - 25% of a district’s total budget (some of our neighboring school districts in Marin have a reserve of 20% or higher).

The economic experts advise a higher reserve rate to ensure that in the event of unanticipated expenses (e.g. a global disaster or significant economic downturn), districts will have sufficient funds to cover unanticipated expenses or revenue shortfalls and to continue to fund educational programming.

How is the KSD Board adjusting to address the decreased reserve over multiple years?

The KSD board modified the district’s reserve policy last year to include a goal that the district’s reserves would increase by at least .5% annually. This determination was made in collaboration with the District’s Finance Subcommittee. The KSD is also reviewing programs and services to see where additional expenses can be adjusted and/or eliminated in efforts to decrease expenses and increase the District’s fund balance for budget reserve levels.

What is the current status of the KSD budget?

The district has certified a positive budget and can fund all existing staffing and programming. However, due to a number of external factors and the need to increase the district’s reserve and to strengthen the district’s financial health the KSD needs to reduce spending. Following the certification of the district’s 1st interim budget, the Marin County Office of Education noted that KSD is projecting deficit spending in the next few years unless staff reductions are made, and noted that if certificated staff reductions “are not made it will further deteriorate the district’s reserves.” MCOE advised the district “to develop a deficit reduction plan that takes into account all relevant factors.”

What factors are impacting the KSD budget?

The KSD’s annual budget is impacted by various factors, which include but are not limited to increased expenses due to inflation, property tax rate fluctuation, enrollment, new mandated programs, staffing, etc.

Annual increases to property tax revenues are projected to reduce significantly due to the drop in the housing market. While the district anticipated this adjustment, and accounted for it in multi-year forecasts, the impact on district revenues will be felt over the next few years. In addition, the state has recently required new programs, Universal Meals and Universal TK, with no additional funding, which impacts the district’s finances. In addition, due to COVID, all California school districts received a number of infusions of funds over the last few years to address the new expenses related to student physical and mental health as well as mitigating learning loss. These funds helped to alleviate budget issues over the last few years, but this influx of additional revenue from the state was all one-time funds, and those have been exhausted and will not be replaced with new revenue going forward. Salary negotiations were completed in November, resulting in increased salaries for certificated and classified staff.

What did our First Interim Budget report demonstrate related to the KSD Budget?

At the December 17, 2024 Board meeting, the district presented the First Interim Budget Report. The multi-year projections based on actual revenues and expenditures from the year to date, and anticipated revenues and expenditures for following years, indicate that maintaining current spending for existing programs in accordance with enrollment projections will put our reserve number at 11.47% per the 2024-2025 however, it is expected to decrease to 8.99% by fiscal year 2025-2026. As outlined above, this would place the district well below the recommended reserve, and in jeopardy of financial hardship in case of unanticipated expenses or revenue shortfalls.

What is the plan to address the budget concerns going forward?

One of the main responsibilities of district administration and the KSD school board is to ensure the financial health and stability of the district. The purpose of the budget monitoring and development process is to ensure that the district maintains essential programs and is able to continue providing high-quality educational programs to district students. As always the administration and board will evaluate all aspects of district programs and business to ensure that we are spending revenue efficiently and that funds are going to the most essential and valuable expenses, programs and services. Over the next few months, the staff and board will be looking closely for ways to reduce spending while maintaining essential programs. Options being considered are:

• Shared Services
• Facility Adjustments
• 5th Grade Operations Changes
• Modification to the Middle School Seven Period Day
• Class Size Adjustments
• Utilize/Adjust FTE Based on Enrollment/Classes
• Early Retirement Incentives

Don’t we have a parcel tax and donations from KIK and PTA to supplement the budget? What are we spending this money on?

Similar to other districts in Marin, Kentfield has passed a parcel tax that provides approximately 25% of our district budget, and the district also receives over $1.125 million from KIK, our local foundation and over $80K from our KSPTA. The remainder of the district budget (other than a small amount of state and federal funds) comes from property taxes.

Staff salaries make up the majority of budget expenses, with almost 80% of the district budget going to compensation of classified, certificated and administrative employees. The district highly values its staff, and one of the strategic goals of the district is to attract and retain the best educators and support staff. The rest of the budget is spent on other expenses for our schools and programs, including curriculum and materials, facilities maintenance and repairs, special education expenses and other costs.

How does the financial outlook at Kentfield compare to the outlook at other districts? Is Kentfield managing its finances differently than other districts?

The district’s budget continues to receive a positive certification, meaning we are able to meet our fiscal obligation for the current and two subsequent years. However, historically the district has held a reserve that is significantly lower than that recommended by state education finance experts. Having a reserve at this level puts the district at risk in the event of an economic downturn and/or unexpected financial burdens. Last year the Board approved a plan to increase the reserve a small amount each year in an effort to meet state recommendations. In other districts in Marin there is variation in the amount of reserve allocated in district budgets, with some Marin districts that have maintained a high reserve for many years, and others that historically have maintained smaller reserves. District administration and the Board are working to prudently improve the long-term district outlook by bringing the reserve levels slowly in line with recommended levels while doing our best to sustain student programs.

School district budgets are always tight, both for LCFF and Community Funded/Basic Aid districts (see explanation above), as property tax revenue (or tax revenue plus LCFF state funding) is not sufficient to fund all of the programs educators and the community desire for our students. Kentfield and many districts in Marin have overcome this gap through the difficult path of passing parcel taxes in our communities and through raising money through parent/caregiver donations. Despite the ability to raise additional money in Marin County districts, it remains challenging for districts to provide competitive salaries, small class sizes and broad programming.

Can the student daily schedule be adjusted to address the district’s budget issues?

There is some flexibility in the determination of school day start and end times, provided that the district meets both the legal requirements for instructional minutes set by the state, and the requirements of the collective bargaining agreements with staff.

What is the status of the UTK program?

In the 2022-2023 school year, the KSD locally launched a phase in Universal Transitional Kindergarten program in alignment with state legislation, which requires that all four year olds have access to a UTK program by 2025-2026. For the last three years, we served our UTK-eligible students on site. In December 2023 we began exploration of changes to the KSD UTK program to ensure that we are meeting our obligation to offer a high quality program, while also being fiscally viable. The 2025-2026 program is being finalized, and includes the following key elements:

• Schedule: Three Hour Program
• Ratio: 1:12 adult to student ratio
• Staff: Qualified Early Learning staff employed by KSD and accredited agencies
• Curriculum: California Preschool Framework
• After School Care: After care may be available by on site agencies, Marin Enrichment, COM Early Learning Center, etc.
• Location: The KSD UTK program will be offered at an Early Learning/Pre-K setting within the Kentfield School District boundaries.

We are continuing to work with the College of Marin to determine if we are able to enter into a partnership by offering UTK at the College of Marin Early Learning Center facility. We anticipate providing an update regarding our location by early to mid February.

Does KSD offer programs outside of school hours (i.e. before and after school programs)?

Before and after school programs are available to students and provided on KSD school sites. These programs are communicated to families through the district newsletter, and, depending on the program, may be provided at no cost through restricted state funding, or have a program fee. These programs are run by the district or the district contracts for these services through community-based agencies.

How are staff trained and supported to implement new instructional methods or curriculum?

The district provides professional development for staff on site through mentoring and coaching by site administrators, peer training opportunities and professional consultants hired to provide training on site to school staff. The district also funds staff attendance at professional development opportunities off site, including training conferences and classes.

If the recommended changes are implemented for 5th grade, will there be new start and dismissal times? What is the impact on instructional time and class sizes?

While the full program structure for 5th grade operations is still under discussion, the recommended program being discussed would continue to have 5th grade start at 8:30am, while the dismissal time on Monday, Tuesday, Thursday and Friday would be earlier than the current dismissal time of 3:28pm. If the final program includes changes to the length of the school day for 5th grade, the district will work with families to ensure that families are supported in addressing varying dismissal times between grades and schools.

Like our current programs for all grades, any modified 5th grade program would meet or exceed the requirements for instructional minutes per day. Our 5th grade program will not have fewer instructional minutes than our 4th grade program. Our class sizes must adhere to the requirements set forth in our collective bargaining agreement with Kentfield Teachers Association, which limits class sizes to 25-27 students in TK and 2nd-5th grades, 22-24 students in 1st grade, and is established by the Board for 6th-8th grade, which in the 2024-2025 school year was 30 students.

Has the district considered consolidation with neighboring districts?

As there are a number of small districts in Marin, the topic of consolidation of districts has been discussed and explored frequently. The process for consolidation is complex and lengthy, with numerous steps required by state law, including the initiation of a proposal, then consideration of reorganization by the county’s Committee on School District Organization by holding hearings and conducting impact studies to develop a recommendation. The recommendation would then be considered by the state Board of Education, which will hold hearings and evaluate impacts. If the recommendation is then approved, an election would be called. In addition, research indicates that consolidation of school districts does not necessarily provide the fiscal benefits intended.

Would additional donations to KIK help alleviate budget concerns?

Yes, any donations to the KIK annual fundraising drive goes directly to the district’s general fund to support enrichment staff salaries and other program expenses.