What are the main fiscal challenges facing the District?
- Parcel Tax Structure / Property Tax Growth As a community-funded district, MPCSD relies on its property and parcel taxes for the majority of its funding. Property tax growth (which is variable and not predictable) and parcel tax annual adjustments are the only way the district receives increasing revenues from its guaranteed revenue source. For more detail about tax revenue, visit the Interactive Financial Portal.
- Increased pension costs. The District is required to participate in the State pension programs (STRS and PERS). For detailed information about these programs and the efforts to fund the pension obligations, visit the Retirement Programs webpage. The state of California has pushed a larger percentage of pension costs for certificated staff to the local school districts, mandating a district contribution rate increase from 8.25% in 2013-14 to 19.1% by 2020-21 for certificated staff (CalSTRS). Pension rates for classified staff which represent about 20% of the District employees are also expected to increase above 20% in 2020-21. These increases amount to almost $3 million in added costs each year by 2020-21. Click here to see how pension costs have increased over the last ten years.
- Enrollment Since 2005, MPCSD has experienced a 40% increase in student enrollment. By 2025, it is anticipated that MPCSD will have added an additional 300+ students to the nearly 3000 students we currently serve. As a community-funded district, MPCSD receives no meaningful additional funding when enrollment increases, unlike state-funded districts. The only way to meaningfully increase revenue in a community-funded district is to pass a parcel tax or seek donations. Visit the Enrollment portal for more information.
- Housing. The current housing development within the MPCSD district is predicted to add students to the district's schools over the next few years. The city's Housing Element must add an additional 3,000 new housing units between 2023 and 2031. While not all these units will be within the MPCSD boundary, most development sites the city is currently looking at are within MPCSD. Accomodating new students generated by this much housing growth, without any additional per-student funding, will be a challenge.