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The Mountain View Whisman School District is preparing to make changes to rein in deficit spending in the coming years as it projects decreasing property tax growth.
The district’s 2025-26 budget, which the school board unanimously passed last month, forecasts $122.4 million in revenues and $130.8 million in expenditures this coming year, which means the district would run an $8.4 million deficit. Deficit spending is then projected to grow to $12.8 million in the 2026-27 fiscal year and $16.5 million in 2027-28.
In total, those deficits would decrease the district’s reserve level, which currently sits at 36.24%, to 8.44% by the 2027-28 fiscal year. That’s below the 17-20% level that the district aims to keep in the third year of any budget, under the terms of a 2018 school board resolution.
“We are very fortunate that in past years we have maintained that reserve level, which will give us time to respond to what’s happening now,” Chief Business Officer Rebecca Westover said at a May 29 board meeting.
The projected deficit spending is the result of both increasing costs to serve students, as well as slowing property tax growth. Roughly 90% of the district’s revenue comes from local sources. That’s largely made up of local property taxes, which are calculated based on assessed property values.
In last year’s budget, Mountain View Whisman projected 4% assessed value growth for the 2025-26 fiscal year. The district is now revising that forecast downward to 3%, with 2% projected in the following two years.
That downward shift is the result of data the district has received from the county, which shows assessed value growth lagging behind prior years, Westover said. Over the past 10 years, Mountain View Whisman has averaged over 9% yearly growth in assessed value, according to Westover. Recent data suggests that could be shifting.
Earlier this month, the Santa Clara County Assessor’s Office released data showing that Mountain View had the lowest assessed value growth of any city in the county.
“The district will need to make adjustments due to the low growth,” district spokesperson Shelly Hausman told the Voice in an email. “Now is the correct time to start right-sizing our budget to ensure long-term stability. While our budget pressures are real, we have time to make thoughtful, strategic adjustments that support students and protect our future.”
Westover stressed that the district’s multi-year projection plan is more of a planning tool than a “forecast.”
“It should not be used as a fixed measure,” Westover said. “We expect it to change, we actually want it to change throughout the year.”
In addition to standard property tax revenue, the district’s budget also includes revenue from the parcel tax measure that voters passed in November. Approximately $5.2 million in parcel tax proceeds is projected for 2025-26.
Funding from the Shoreline special tax district, a subject of much discussion and debate over the last few years, is also included. The city of Mountain View recently reached a 10-year revenue sharing agreement with Mountain View Whisman and the Mountain View Los Altos High School District.
On the expense side, the district’s special education costs are increasing. Last school year, the district contributed roughly $16.3 million to operate its special education program, with another $3.9 million coming from state, federal and other sources, according to Westover. Special education costs have increased substantially over time, with the district’s contributions sitting at $10.9 million back in the 2019-20 school year.
While this does impact the budget, Superintendent Jeff Baier was quick to point out that spending more to educate students with disabilities is part of the duty of a public school district.
Another area that’s impacting the district’s budget is the implementation of transitional kindergarten, which isn’t being paid for by the state. Staffing costs for this program in 2025–26 are projected at $3.5 million.
In line with existing union contracts, the budget includes a 5% salary increase in 2025-26 and a 4% bump in 2026-27. No increase is budgeted for 2027-28, because the current contracts don’t extend that far.
Correction: Due to an editing error, a previous version of this article incorrectly stated Mountain View Whisman’s boundaries. The school district does not include portions of Los Altos. The Voice regrets the error.
@MV Voice: “Mountain View Whisman’s boundaries include much of Mountain View, as well as portions of Los Altos.” Don’t think the boundaries include any portion of Los Altos.
What if the portion of Mountain View within Shoreline actually saw a DROP in total assessed value. That doesn’t affect any school district, but it affects the park special district Then the rest of Mountain View actually experienced some increase. The city as a whole was supposed to be growth of 0.5% I believe. 20% of the city, both residential and commerical, lies within LASD. 80% constitutes MVWSD.
I would be very interested in the enrollment projections for the coming years. I imagine they would show declining enrollment, but would the predicted decline be large enough to make the closure of a school a viable way to bring the budget closer to balance?
The growth recently has been slight, and all added in the TK age cohort. These are less expensive students than grades 1-6. So effectively they are seeing a slight drop off in students in grades 1-8. Every 25 or so students fewer means at least 1 less teacher needed, which saves cost without needing to close a school. The question is whether or not more kids will move in to new housing as it is added. So far that has not been the case. Also there may be a decrease in the amount of new units opening for occupants.