Since 1991, the San Mateo-Foster City Elementary School District has benefited from a parcel tax renewed in June 2003. The $75 parcel tax, which is now $87 due to built-in inflation, means about $2 million in annual district revenue and is set to end in 2010.

On Thursday, the Board of Trustees decided to ask voters about increasing and extending the tax by $96 for seven years through an all-mail ballot in February. The increase could mean $3 million annually for the district, according to a staff report by the Chief Business Official Michaela Ochoa.

Board President Cathy Rincon explained the measure is important since the district is dependent on the revenue from the parcel tax.

“Based on what we know about our resources and expenditures, we may need to make cuts in the future. If the parcel measure is not passed, those cuts will be even more significant,” Rincon said.

Multi-year projections by the district of its budget with and without the parcel tax passage shows a current unrestricted fund balance of $15.68 million. That will drop to $14.2 million in 2010-2011 and $9.9 million in 2011-2012 if the parcel tax passes. If the proposed extension and increase fails, that beginning fund balance drops to $14.2 million in 2010-2011 and $3.9 million in the following year.

“Drastic state funding reductions have forced San Mateo-Foster City schools to cut more than $18 million from its budget to date, with more cuts on the horizon,” Superintendent Pendery Clark wrote in a letter to be sent to parents. “In fact, state revenues have been reduced so significantly that it appears this year, we will be solely funded by our local property taxes, and received no state funding.”

In October, the board received favorable survey results about extending the parcel tax.

Godbe Research conducted 500 18-minute phone interviews with 300 people in San Mateo and 200 people in Foster City, from Sept. 9 to Sept. 15 resulting in a recommendation for a $96 increase for seven years to the current parcel tax. Those surveyed were supportive of a measure particularly if it would help attract and retain quality teachers, keep school libraries open and support middle school arts and music programs.

At the same meeting, the board approved an extension of the contract with the San Mateo Elementary Teachers Association, which ended June 20, through the current school year. Approval commits both the district and SMETA to begin negotiations no later than Feb. 16, 2010.

Heather Murtagh can be reached by e-mail: heather@smdailyjournal.com or by phone: (650) 344-5200 ext. 105.