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Frequently Asked Questions
Summary of Basic Aid Facts
Q: I’ve read about Beverly Hills and Irvine becoming “basic aid” districts. What does that mean?
On a yearly basis, a district is classified as basic aid or revenue limit. To make the determination, you start with property taxes. Each district is allocated a percentage of its local property taxes for schools. This serves as the base part of the funding equation. If the property tax funding is low, then the state provides more money to reach a revenue limit, or the amount of money the state is willing to spend on education in that school district. (The revenue limit, and the percent of property taxes the district keeps, are different for each school district and were set in the 70s.)
If the money from the local property taxes for a district becomes greater than the revenue limit, that district becomes “basic aid” and can keep the funding above and beyond its revenue limit. By contrast, the only way a revenue limit district can increase its funding is to increase enrollment or find other sources of local revenue such as from an education foundation. A basic aid district benefits from declining student enrollment. Beverly Hills school district was in the news because of the controversy over denying enrollment to students who live outside the Beverly Hills school district– the very students who had helped increase revenue before the district became basic aid.
Q: Wouldn’t it help Manhattan Beach schools if we could keep our property taxes?
Currently, MBUSD receives almost twice as much funding from the state as a revenue limit district than we would as a basic aid district like Beverly Hills or Irvine. This is due to the relatively low percent of local property taxes (20 percent) that Manhattan Beach schools are allowed to keep for schools, and because our property tax basis is relatively low despite high home prices. Although the funding determination is done yearly, this percentage is not adjustable. Many homeowners in Manhattan Beach live in homes with a tax basis of less than $500,000; until our property tax valuation grows significantly, we receive more funding as a revenue limit district.
Q: How was the percent of property tax allotted to education set for Manhattan Beach?
The formula to allocate property tax dollars for education is based on tax rates and education spending levels that were in place in 1972. Unfortunately, our city was spending a relatively small share of property taxes on our Manhattan Beach schools in the early 70s. Thus, our district is entitled to less property tax revenue than other districts even if the current total assessed value of our respective communities is the same. A rising local property tax base does nothing to help a school district until it becomes basic aid. The only beneficiary is the state, whose state aid contribution correspondingly decreases as the local property taxbase assumes a greater percentage of the district’s revenue limit.
Sources: The Basics of Basic Aid by Darren Sepanek (which will appear in the MB Sun – Education Section – Jan. 28, 2010), and the Irvine Unified School District.
What does the Manhattan Beach Education Foundation do?
What positions will MBEF fund in the 2009-10 school year?
How does the State provide our schools with money?
I thought the state Lottery was supposed to supplement what the state doesn’t provide?
How does MBEF determine which positions and programs to fund?
Why do we need both the MBEF and a PTA?
What is the relationship between the District and MBEF?
How do I find out what is going on at the MBEF or provide input?
How do I know the District is using MBEF grants for their intended purpose?
Why can’t I designate how my donation is used?
Other than the annual appeal what does MBEF do to raise funds?
We are currently faced with an unusual state funding situation. What will happen if the state further reduces school funding during the school year? Will MBEF come back for another supplemental appeal?
Questions and Answers:
What does the Manhattan Beach Education Foundation do?
The Manhattan Beach Education Foundation (MBEF) is a nonprofit group that raises money to improve and enhance the education provided in Manhattan Beach public schools. State funding for education in California is inadequate for many basic programs and insufficient to fund any enrichment programs. Our school district receives less than $5274 a year per student, an amount far less than what other states provide for their students. MBEF pays for teachers, other educators and staff whose positions the state of California may not fund or require, but who the district and parents consider necessary for a high-quality education.
MBEF will spend $4.1 million in 2009-2010 to pay for 84 educators including classroom teachers (to maintain small class size), college and career counselors, librarians, science and reading enrichment teachers, computer teachers, music teachers and assistants, educational advisors, an elementary physical education teacher and others.
MBEF helps fill the gap between what the state provides the district and what it costs to provide a well-rounded, quality education for our children. Without donations to MBEF, many programs that contribute to an exceptional education — and help place our school district in the top five in CA — would simply disappear.
What positions will MBEF fund in the 2009-10 school year?
MBEF will fund the following positions/programs in the 2009-2010 school year:
Elementary: $2,300,000
Classroom teachers for reasonable class size K-5
Instrumental Music Teachers
Science Specialists- 4th & 5th Grade
Health Assistants
Reading Enrichment Specialists
Physical Education – 4th & 5th Grade
Librarians
Computer Lab Specialists
Middle School and High School: $1,800,000
Classroom teachers for reasonable class size
Music Assistant
Choral Accompanist
Academic Advisor for 6, 7, 8 grade
Librarian at MBMS and Mira Costa
Health Assistant at MBMS
Two College/Career Counselors
AVID
Academic Support Counselors
Educational Advisor
9th Grade English Reasonable Class Size
Science Lab Assistant at Mira Costa
How does the State provide our schools with money?
Every year the state legislature determines how much money school districts will receive as a base amount for each student enrolled. Funds are divided into two categories – General Purpose and Categorical. General purpose funds (roughly two-thirds of funding) are nearly equal per pupil throughout the state, regardless of district. Categorical funds are designated for specific programs tied to district demographics, socioeconomics or special needs.
Most of the revenue for school funding comes from business and personal income taxes, sales taxes, and some special taxes. Revenue from these taxes varies depending on the health of the economy, which makes school budgeting especially challenging. Local property taxes amount to a little less than 23% of all school funding. You can learn more about California school funding in our newsletter and at www.edsource.org
I thought the state Lottery was supposed to supplement what the state doesn’t provide?
This is an often misunderstood element of school funding. Lottery funds account for approximately $132/pupil in K-12. Lottery funds don’t just go to K-12 schools; they support students in all areas of public education including Community Colleges, the University of California, the California State University system, Adult Education, Charter Schools and even the schools at the Department of Corrections and Rehabilitation – Division of Juvenile Justice receive Lottery funds. Our students receive very little from the Lottery.
Why do we need both the MBEF and a PTA?
The MBEF and PTAs work closely together to support quality education. In fact, PTA presidents from each school sit on the MBEF board to provide input on MBEF decisions. MBEF and PTA are two pieces of the funding puzzle. At a basic level, MBEF pays for people and PTAs pay for things. For example, MBEF pays for the librarian, PTA pays for books; MBEF pays for the computer lab teacher, PTA pays for the computer.
While PTAs cannot pay for staff, schools have had some limited ability to do so through their School Site Council. Up until this year, Schools Site Councils received about $100 per child from the state. The councils used that money to pay for additional hours of support for reading or science specialists, assistant principals and the like. The state cut this funding for the 2009-2010 school year. The Manhattan Beach school board voted to allow PTAs to give their School Site Councils a maximum of $100 per student to replace this lost funding. The School Board stipulated that School Site Councils may only use this money to pay for additional instructional hours for MBEF-funded staff including:
- science specialists
- librarians
- computer lab specialists or
- reading specialists
How does MBEF determine which positions and programs to fund?
The MBUSD Board of Trustees and the school administration determine instruction in our schools; that is, what will be taught, who will teach it and how it will be delivered at each school. MBEF provides the funding, above and beyond what the state pays for, to support or enhance that instruction.
MBEF raises money one year in advance so that when the school board makes its budget in the spring, it knows what staff and programs public funding will cover and what additional support is needed from MBEF. Specific grants and costs are then proposed by the MBEF Grants committee, made up of members of the MBEF Board of Directors, and voted on by the full MBEF board. The Grants committee seeks input from parents, donors, administrators and teachers.
As public funding shrinks and demands on California’s public schools grow, grants from MBEF help maintain the high quality of education in Manhattan Beach. Years ago MBEF grants were only a few hundred thousand dollars. Money from the state was sufficient to cover most programs. Today, state funding for general education in our district is as low as it was in the mid-90s. And MBEF grants now total $4.1 million, about 9 percent of the total district budget. MBEF has gone from providing limited funding strictly for enrichment to providing very significant funding for core academics and enrichment. Today small class size, educational advisors, a selection of courses, librarians, science specialists, music instructors, computer instructors, health assistants, college and career counselors, and more are funded through MBEF.
You can provide input on MBEF grants by submitting a comment to questions@mbef.org.
What is the relationship between the District and MBEF?
As a non-profit fund-raising organization, MBEF is independent from the school district. The MBEF board of directors along with the MBEF Grants committee makes critical decisions regarding the allocation of grants using input from the district and MBEF donors. MBEF and MBUSD enjoy a cooperative working relationship with one common goal – to provide an exceptional education for students in the district. However, MBEF controls the grants allocated to the district; it does not write a blank check to the district.
Although MBEF grants fund teacher salaries, MBEF does not employ the teachers and it does not control salaries or hiring. This is managed by the district in compliance with state law, including union rules.
How do I find out what is going on at the MBEF or provide input?
MBEF holds monthly meetings — the second Tuesday of each month — that are open to the public. Parents are welcome to attend. Donors can also provide ideas and input by emailing us at questions@mbef.org. Browsing our web site is a great way to stay informed. You can also communicate with the MBEF liaison at your child’s school.
How do I know the District is using MBEF grants for their intended purpose?
MBEF determines how grants are allocated to the district and the district hires personnel and establishes programs accordingly. MBUSD bills MBEF semi-annually for the actual costs incurred. Detailed information on all grants is available at our grants page.
MBEF is a very transparent organization. Details on how funds are utilized are featured on the MBEF Web site as well as in the MBEF newsletters (School Notes) and annual report. MBEF meetings are open to the public and questions and input from donors are highly encouraged.
Our goal is to have 100% of the families whose children attend an MBUSD school contribute to MBEF. All children in the district benefit from the educators and programs that MBEF funds and every gift contributes to a better education. If you are a new donor to MBEF, we ask you to consider a gift of $1000 or more per child. If you have given in the past, we ask you to make a gift of at least the same amount so that we may preserve or increase our annual funding level.
Yes. The Manhattan Beach Education Foundation is a California non-profit, public benefit, corporation. It is a tax-exempt organization under Section 501(c) (3) of the Internal Revenue Code. The federal tax ID number for the foundation (EIN) is 95-3881166. All donations are tax-deductible to the extent allowed by law.
Why can’t I designate how my donation is used?
The goal of MBEF and the district is to provide an exceptional and consistent education for all children in the district. What makes up that education is ultimately decided by the school board and the administration who consider the needs of the entire district. To allow “special interest” funding of positions and programs would not serve to build an equal and consistent educational foundation year after year for the entire district. For this reason, the school board does not allow directed giving from MBEF or individuals. The MBEF board of directors and grants committee work very hard to gather donor input. We communicate that to administrators and the school board so they can understand and consider our donors’ priorities when making decisions about instruction.
MBEF invites your suggestions and input on how funds are allocated. You can submit a comment to questions@mbef.org.
I want to give but can’t give a lump sum – do you have payment options?
Yes, MBEF now has several payment options at www.mbef.org/givetoday or you can find donation envelopes at your school office.
- Installments- donations are charged to your credit card automatically on the schedule you select. This option must be done online at mbef.org/givetoday.
- One-time donation provided by check or credit card
- Appreciated Stock – donation of stock certificates. .
Don’t forget to submit the paperwork for a matching funds donation from your employer if they offer such a program.
The Endowment Fund allows MBEF to provide a more secure source of long-term funding for enhanced educational programs and activities.
MBEF is charged with raising funds each year to support educational programs in our schools. While the annual appeal has historically reached its goal – and sometimes surpassed it – virtually all of the money raised in a year gets spent in the subsequent school year and then the process must begin again.
Formally created in 1991, the Endowment Fund is now over$4 million. According to MBEF by-laws, the Endowment must reach $10 million before a portion of the interest income can be used to supplement MBEF’s annual grants to the District.
Other than the annual appeal what does MBEF do to raise funds?
MBEF also hosts the popular Manhattan Wine Auction each year. This evening of fun, dancing, fine food and wine typically generates over $500,000 for our schools through sponsorships, ticket sales and a live and silent auction. According to our bylaws, one third of the net proceeds from the event go to the Endowment Fund.
Many companies also contribute to MBEF through a matching funds program.
Additionally, the Endowment typically receives over $200,000 annually in donations.
I’ve heard that other areas use a Parcel Tax to supplement school funding. Has Manhattan Beach considered this?
A parcel tax is a tax imposed on most residents of a community (elderly and disabled homeowners are often excluded) for a specified purpose. This is often seen as a fair way to help fund local public schools because in communities such as Manhattan Beach the exceptional schools are a major contributing factor to healthy real estate values. Maintaining a first-rate school district makes this a desirable community for those looking to relocate. As such, a tax on residents (whether they have students attending school or not) is often considered a fair and suitable way to provide additional school funding.
Our school district is the fifth best district in the state academically. Each of the four school districts ranked above ours has a parcel tax. One of those districts receives 27 percent of its entire school budget from its parcel tax. Nearby Palos Verdes Unified School District has had a parcel tax for many years. An increasing number of districts are opting for a parcel tax to protect schools from reductions in state funding. For more information, visit click here.
The threshold to pass a parcel tax is 66.66 percent. Manhattan Beach tried and failed to pass a parcel tax initiative in 2003. Another attempt may be considered in the future, but in the mean time we must rely on MBEF to supplement state funding.
We are currently faced with an unusual state funding situation. What will happen if the state further reduces school funding during the school year? Will MBEF come back for another supplemental appeal?
No one likes to do “crisis” fundraising. It was unavoidable last spring when the state drastically reduced our district’s funding after MBEF’s Annual Appeal was over. Many parents implored us to fundraise so teachers and other staff whose jobs would be lost could be reinstated. MBEF ran a “supplemental appeal” and we succeeded in raising $1.3 million, for a total of $4.1 million on the year. We will attempt to raise this entire sum ($4.1 million) in this year’s Annual Appeal, ending January 31, 2010.
Even if we are successful in raising $4.1 million, there is no guarantee that this will be sufficient to maintain the same programs for 2010-2011 as we have in 2009-2010. (We raise money a year in advance. The money raised in 2009-2010 pays for staff for 2010-2011.) It is likely that the state will reduce our district’s funding further this school year, and the school board will have to decide how to cope with these cuts. The funding cuts could come at any time, with little warning, and affect this year’s budget as well as next year’s. So called mid-year cuts — cuts to this year’s budget which is already in place — are especially troubling for a school district because districts cannot reduce costs by eliminating certificated staff (teachers) in the middle of the school year. Teachers have a one-year contract that can’t be broken mid-year. The vast majority (86 percent) of our district’s budget is made up of teachers’ salaries. Mid-year budget cuts have to be absorbed elsewhere, such as by eliminating non-certificated staff positions which requires a 45-day notification. After years of cost-cutting and belt tightening, our district’s budget is stable but very lean.
