San Mateo Union High School District studies budget

“In a positive way, we’re a little bit insulated here,” Hawkins said. “We still have to do our work but it is nice to note that we are funded by property taxes which are a much more stable funding source than the state of California as a whole.” 

The district is working with around $232 million in revenue, with a project expenditure of around $240 million. The general fund’s ending balance is projected to remain above $46 million. 

State funding will likely present some concerns for other districts who primarily rely on state and federal revenue, Hawkins acknowledged, and matters such as insurance costs and federal regulations may still present its own challenges to the district. 

Pension costs have significantly increased, costing districts almost double what they were required a decade ago. Hawkins said these financial commitments are determined by the state and the board has no jurisdiction over the matter. 

“The next couple of years are going to be pretty interesting in the state of California,” Hawkins said. “Our district is in good financial shape compared to most districts in the state.”

The district will also begin seeing the step down in the next two years of one-time expenditures that were received mostly from the pandemic, but will soon not be available.

“Although these funds were sorely needed, appreciated and put to good use to support our students, they do cause some issues,” Hawkins said. 

Certain staff positions, including a social worker, psychologist and campus safety specialist are currently funded by sources sunsetting in 2026, and the district will have to review these contracts and positions over the next year to explore funding opportunities that might fill any necessary gaps. 

The district’s reserve of more than $13 million ultimately provides stability to its three-year fiscal projections.

Hawkins noted a significant majority of money spent is on its personnel — 81% of its money spent goes to salaries for its certificated and classified staff, as well as their respective benefits. 

“We are in a people business, the vast majority of our expenditures go to people,” Hawkins said. 

Another significant expenditure is the amount the district dedicated to sustaining its special education programs and mental health services. State and federal funding covers less than 20% of costs necessary to special education, Hawkins said, which shows they “continue not to meet their commitment for funding.” 

The study session was purely informational and no action was made by the board, and detailed information on line items can be found in the special board meeting study session agenda packet. 

“I just think it’s so important whether we have people watching or not, part of being a professional governance team is being extremely transparent about the budget,” Superintendent Randall Booker said.

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