Budget Overview
The Redwood City School District (RCSD) serves approximately 6,310 students in grades TK-8 across 12 schools. The district operates on a General Fund budget of $159.8 million in expenditures for the 2025-26 school year.
Community-Funded (Basic Aid) Status
RCSD is one of roughly 100 "community-funded" (formerly "Basic Aid") districts in California. This means local property tax revenue exceeds what the state would otherwise provide through the Local Control Funding Formula (LCFF). The district keeps all of its local property tax revenue rather than receiving a state check.
What does Basic Aid mean in practice? RCSD's funding rises and falls with local property values, not with state budget decisions. When property values grow, so does district revenue. But unlike state-funded districts, RCSD does not receive automatic cost-of-living adjustments from Sacramento. RCSD still has an LCFF Supplemental and Concentration entitlement of approximately $10.2M based on its 60.3% unduplicated pupils (low-income, English Learner, foster, and homeless students), but in a community-funded district that entitlement is funded from the district's own property tax revenue rather than as a separate state check. Its main effect is to set the LCAP minimum-proportionality spending floor for those students.
Budget at a Glance
| Metric | 2025-26 |
|---|---|
| Total Revenue | $158.1M |
| Total Expenditures | $159.8M |
| Operating Deficit | ($1.7M) |
| Beginning Fund Balance | $17.1M |
| Ending Fund Balance | $15.4M |
| Reserve (3% min. + undesignated) | $5.6M (3.51%) |
| Per-Pupil Spending | ~$25,330 |
| District Enrollment | 6,310 |
| Average Daily Attendance | 94.70% |
Source: 2025-26 Second Interim Financial Report, approved March 25, 2026.
What This Page Covers (And What It Doesn't)
The numbers above describe Fund 01, the General Fund — RCSD's main operating fund and the source for teacher salaries, instructional programs, and day-to-day operations. The General Fund is the right lens for "what's the district's budget?" because it's by far the largest fund and drives most policy decisions. But the district also operates a few separately-accounted funds that don't appear in the $159.8M figure:
- Fund 12 — Child Development Center (CDC): the State Preschool Program (CSPP) and other early-childhood operations, funded primarily by state preschool grants and parent fees.
- Fund 13 — Cafeteria / Child Nutrition Services (CNS): the school meals program, funded by federal and state meal reimbursements plus meal sales.
- Fund 21 — Building Fund: proceeds from voter-approved general obligation bonds (Measures S and T), restricted to capital improvements. Covered separately in the Bonds & Construction section.
Other smaller funds (debt service, special reserves, etc.) exist but are non-material to district operations. Unless otherwise noted, the rest of this page describes Fund 01.
Where the Money Comes From
RCSD's $158.1 million in General Fund revenue comes from a mix of local property taxes, state grants, federal funds, and transfers. Because RCSD is a community-funded district, local property taxes form the single largest source.
| Revenue Source | Amount | % of Total | Visual |
|---|---|---|---|
| LCFF Base (Property Taxes) | $87,127,120 | 55.1% | |
| LCFF Ed. Protection Acct. | $1,198,220 | 0.8% | |
| LCFF Supplemental & Concentration | $10,106,685 | 6.4% | |
| Special Ed Property Taxes | $5,548,180 | 3.5% | |
| Other State Revenues | $18,287,039 | 11.6% | |
| Lottery | $1,585,815 | 1.0% | |
| Federal Revenues | $4,808,647 | 3.0% | |
| Local Revenues | $16,850,820 | 10.7% | |
| Measure U Parcel Tax | $1,621,922 | 1.0% | |
| Transfers - RDA | $11,000,000 | 7.0% | |
| Total Revenue | $158,134,448 | 100% |
Source: 2025-26 Second Interim, General Fund Sources of Revenue (presentation, slide 6).
Property Taxes — The Foundation
Local property taxes (the LCFF Base plus Special Education property taxes) total approximately $92.7 million, or 59% of all General Fund revenue. San Mateo County collects property taxes and distributes the district's share. Because RCSD is community-funded, it keeps all allocated property tax revenue rather than returning a portion to the state.
The district assumes 5% annual property tax growth in its multi-year projections. However, as the district notes, "the vast majority of homes in the RCSD attendance zone were purchased when property values were much lower," meaning assessed values (and thus tax revenue) may be lower than neighboring districts with higher turnover.
LCFF Supplemental & Concentration Entitlement
The $10.2 million on the revenue table for "LCFF Supplemental & Concentration" is the entitlement amount calculated by the LCFF formula based on the 60.3% of RCSD's students who are unduplicated pupils (qualifying as low-income, English Learner, foster youth, or homeless). For state-funded districts this would arrive as separate state cash; for a community-funded district like RCSD the entitlement is funded from the district's own property tax revenue and is reported on this line for accounting purposes. The amount still has real consequences: it sets the LCAP minimum-proportionality spending floor, meaning the district must show at least this much being directed toward increased or improved services for unduplicated pupils.
Federal Funds
Federal revenues ($4.8 million, 3% of budget) include Title I grants for high-poverty schools, Title III for English Learner programs, and IDEA funding for special education. Seven of the district's 12 schools receive Title I funding. Federal funds are "restricted," meaning they must be spent on specific federally mandated purposes.
RDA Transfers
The $11 million in Redevelopment Agency (RDA) transfers represents 7% of total revenue. These are pass-through payments from the former city redevelopment agency. This funding source is temporary and is expected to phase out entirely in future years, creating a significant revenue cliff.
What are restricted vs. unrestricted funds? "Restricted" funds come with legal strings attached: federal Title I money must serve low-income students, bond money can only pay for facilities, and Measure U funds can only support the programs voters approved. "Unrestricted" funds (primarily property taxes) can be used for any lawful purpose. Of the $15.4M ending fund balance, $8.8M is restricted, leaving a modest unrestricted cushion.
School Bonds — Measures T & S
RCSD voters have approved two general obligation (GO) bond measures totaling $491 million to modernize school facilities. Bond funds are legally restricted to capital projects and cannot be used for salaries, pensions, or operating expenses.
How School Bonds Work
A general obligation bond is essentially a loan from investors that the district repays over time using property tax revenue. Voters must approve bonds by a 55% supermajority. The state constitution limits the tax rate to $30 per $100,000 of assessed value for elementary districts ($60 for unified). Bond money goes into a separate Building Fund (Fund 21) — completely separate from the General Fund that pays for teachers and programs.
Bond money CAN pay for: New construction, renovations, HVAC systems, electrical upgrades, safety improvements, technology infrastructure, furniture, and equipment permanently affixed to buildings.
Bond money CANNOT pay for: Teacher or administrator salaries, pensions, benefits, textbooks, professional development, or any ongoing operating costs.
Measure T (Phase I) — Passed November 2015
| Detail | Measure T |
|---|---|
| Amount | $193 million |
| Voter Approval | 63.5% Yes |
| Tax Rate | $30 per $100K assessed value |
| Max. Repayment Period | 40 years |
| Election Date | November 3, 2015 |
Measure T funded Phase I of the district's Facilities Master Plan, addressing the most urgent needs at aging campuses. Projects included classroom renovations, roof repairs, fire and earthquake safety upgrades, technology infrastructure, and modernized learning spaces. Completed projects include major modernizations at Hoover, Taft, Clifford, Roosevelt, Garfield, and Adelante Selby, among others.
Source: Ballotpedia: Measure T (2015).
Measure S (Phase II) — Passed November 2022
| Detail | Measure S |
|---|---|
| Amount | $298 million |
| Voter Approval | 60.4% Yes |
| Tax Rate | $24 per $100K assessed value |
| Annual Revenue (est.) | ~$16 million/year |
| Election Date | November 8, 2022 |
Measure S continues the modernization work that Measure T began. The district identified approximately $400 million in remaining facility needs. Projects include upgrading STEAM classrooms and labs, providing dedicated music and art spaces, modernizing HVAC and air filtration, and bringing all schools to the same safety and learning standards. Active projects include work at McKinley MIT, Henry Ford, Orion, and Garfield.
Source: Ballotpedia: Measure S (2022).
Building Fund (Fund 21) Status
As of the 2025-26 Second Interim (March 2026), the Building Fund/Bond Fund held a balance of $46.8 million, reflecting active construction and modernization work funded by Measures T and S.
Citizens' Bond Oversight Committee
California law requires an independent Citizens' Bond Oversight Committee (CBOC) to review bond spending and publish annual reports. RCSD's CBOC has nine members representing senior citizens, parents, taxpayers, and community members. The committee meets quarterly at the District Office and publishes annual reports for both Measure T and Measure S. Meeting agendas and minutes are available on the district website.
Parcel Tax — Measure U & Measure C (2026)
How Parcel Taxes Work
A parcel tax is a flat or formula-based tax levied on each parcel of land within a district, regardless of the property's assessed value. Unlike bonds, parcel tax revenue goes into the General Fund and can be used for operations such as teacher salaries and programs. Parcel taxes require a two-thirds supermajority to pass, a higher bar than the 55% needed for bonds.
Current Measure U (2016)
| Detail | Measure U |
|---|---|
| Amount | $85 per parcel per year |
| Annual Revenue | ~$1.6M (budgeted $1.62M) |
| Voter Approval | 79.8% Yes |
| Duration | 14 years (July 2017 – June 2030) |
| Election Date | November 8, 2016 |
| Predecessor | Renewed a $67/parcel tax from 2012 |
Measure U funds enhance math, science, reading, and writing instruction; attract and retain qualified teachers; support arts and music programs; and update classroom technology. The tax explicitly prohibits spending on administrative salaries. An independent Citizens' Oversight Committee monitors fund use.
Exemptions: Seniors age 65+, individuals receiving Supplemental Security Income for disability, and those receiving Social Security Disability Insurance with income below 250% of federal poverty guidelines may apply for exemption.
Measure C — June 2026 Parcel Tax (Just Short; Count Ongoing)
Measure C is just short of passing as San Mateo County continues to count. In the county's June 10, 2026 results release, Measure C stood at 63.84% Yes (11,913 votes for to 6,748 against) — about 2.8 points under the two-thirds (66.67%) supermajority a parcel tax requires. Ballots are still being tabulated, so totals are not final. The RCSD Board placed the measure on the ballot at a February 26, 2026 special meeting; it would be in addition to Measure U, which runs through 2030.
| Detail | Measure C (2026) |
|---|---|
| Tax Rate | 17.5 cents per square foot of building space |
| Vacant/Unimproved Parcels | $25/year flat rate |
| Expected Revenue | $12.2 million/year |
| Duration | 8 years (July 2026 – June 2034) |
| Vote Required | Two-thirds (66.67%) |
| Election Date | June 2, 2026 |
| Result (count ongoing) | 63.84% Yes (11,913–6,748) — ~2.8 pts under two-thirds |
Measure C would have raised approximately $12.2 million per year for eight years — about $175 a year for a 1,000-square-foot home, with exemptions for seniors and people receiving federal disability support. The district had earmarked the revenue to attract and retain teachers, counselors, and staff; protect science, math, and STEM instruction; preserve reading and writing programs; and keep class sizes manageable.
What the Result Means for the Budget
Measure C revenue was not built into the district's three-year budget projection. The board had already adopted a $6.04 million Fiscal Stabilization Plan on February 4, 2026, and the 2025-26 Second Interim multi-year projection balances without any parcel-tax money — it carries no unidentified cuts and keeps reserves above the 3% legal minimum in all three years (see the Multi-Year Fiscal Outlook). In other words, the outcome at the ballot box does not trigger new cuts; rather, if Measure C does not pass, the roughly $12.2M it would have added each year is revenue the district will not have to restore programs and staffing trimmed in the stabilization plan, or to offset the looming RDA-transfer cliff. The existing Measure U ($1.6M/year) continues through 2030 regardless of the June 2026 outcome.
Community Resources
- Strong Schools for Redwood City (pro-measure campaign): strongschools4rwc.org
- Official election results: San Mateo County Assessor-Clerk-Recorder & Elections
Source: San Mateo County Registration & Elections, official results as of the June 10, 2026 release (63.84% Yes, 11,913–6,748). Earlier election-night coverage: Redwood City Pulse, June 3, 2026. Vote totals are unofficial pending the county's final canvass.
Where the Money Goes
RCSD's $159.8 million in General Fund expenditures is dominated by personnel costs: salaries and benefits account for 76.4% of all spending. This is typical for school districts, where the primary "product" is instruction delivered by people.
Expenditure Breakdown
| Category | Amount | % of Total | Visual |
|---|---|---|---|
| Certificated Salaries (teachers, admin) | $53,745,487 | 33.6% | |
| Classified Salaries (support staff) | $28,741,030 | 18.0% | |
| Employee Benefits | $39,578,283 | 24.8% | |
| Services & Operating Expenses | $31,271,358 | 19.6% | |
| Books & Supplies | $5,772,632 | 3.6% | |
| Capital Outlay | $921,767 | 0.6% | |
| Total Expenditures | $159,841,595 | 100% |
Source: 2025-26 Second Interim, General Fund Expenditures (presentation, slides 7-8). Category rows exclude a small net other-outgo/indirect-cost credit.
Benefits: The Hidden Cost Driver
Employee benefits ($39.6M) represent about a quarter of all spending and include CalSTRS pension contributions (19.10% employer rate), CalPERS pension contributions (26.81%), health and welfare benefits, and other statutory benefits. Both CalSTRS and CalPERS rates are projected to keep rising through 2027-28 (CalPERS to 26.90%).
Services & Operating Expenses
The $31.3 million in services and operations includes contracted services, professional and operating expenses, and insurance. This category covers everything from special education service providers to utilities, transportation, legal fees, and technology contracts.
LCAP Spending Breakdown
The district's Local Control and Accountability Plan (LCAP) allocates $65.9 million of the total budget across three goals:
| LCAP Goal | Amount | Focus |
|---|---|---|
| Goal 3: Academics | $57.3M | Instruction, curriculum, credentialed teachers, CAASPP improvement |
| Goal 1: Engagement | $7.5M | Attendance, school climate, family engagement, suspensions |
| Goal 2: EL Programs | $3.2M | English Learner progress, reclassification, LTEL reduction |
| Total LCAP | $65.9M |
Source: 2025-26 Adopted LCAP.
Multi-Year Fiscal Outlook
At the 2025-26 Second Interim (March 2026), the district's multi-year projection has turned a corner. After the board adopted a $6.04 million Fiscal Stabilization Plan on February 4, 2026, the three-year outlook no longer carries any unidentified cuts: the reductions are fully identified and baked in, the fund balance grows rather than shrinks in both projection years, and the reserve climbs from 3.51% to 5.81% — comfortably above the 3% legal minimum throughout. On that basis the district filed a Positive Certification, certifying it can meet its financial obligations for 2025-26 and the two subsequent years.
Three-Year Projection
| 2025-26 | 2026-27 | 2027-28 | |
|---|---|---|---|
| Total Revenues | $158.1M | $154.2M | $161.1M |
| Total Expenditures | $159.8M | $153.5M | $154.4M |
| Identified Stabilization (in expenditures) | — | ($6.04M) | ($6.11M) |
| Net Change in Fund Balance | ($1.7M) | +$0.6M | +$6.7M |
| Beginning Balance | $17.1M | $15.4M | $16.0M |
| Ending Balance | $15.4M | $16.0M | $22.7M |
| Reserve % | 3.51% | 3.74% | 5.81% |
The "Identified Stabilization" line is the board-approved Fiscal Stabilization Plan (Feb. 4, 2026), shown as a reduction to expenditures. Source: 2025-26 Second Interim Multi-Year Projection (March 25, 2026), p. 1.
The drawdown has been arrested. A year ago the fund balance was sliding toward the 3% reserve floor with millions in cuts still unidentified. With the stabilization plan in place, the Second Interim projects the ending balance growing from $15.4M to $22.7M by 2027-28 and the reserve rising to 5.81%. The structural pressures below are real, but the district now has a credible, fully-identified path to balance — it does not depend on the June 2026 parcel tax (Measure C), which is running just short of the two-thirds bar as the count continues.
Fiscal Stabilization Plan
On February 4, 2026, the board adopted a $6.04 million Fiscal Stabilization Plan ($6.11M ongoing) that eliminates 31.75 FTE positions. These are the reductions now reflected in the three-year projection above. Key elements include:
- About $3.5M from restructuring and reduced services at the district office
- About $2.9M from adjustments at school sites, the largest share (17 teaching positions, ~$2.3M) absorbed through enrollment-driven attrition
- Increased K-2 class sizes from 25:1 to 28:1
- Elimination of some counselor and mental-health positions; several school sites move to contracted mental-health services
Sources: Redwood City Pulse, Feb. 5, 2026; Approved Fiscal Stabilization Plan (Feb. 4, 2026), Second Interim board packet.
Structural Deficit Drivers
Enrollment continues to decline — from 6,310 in 2025-26 to a projected 6,212 by 2027-28 (the Second Interim assumes a gentler slide than earlier projections). Each lost student represents roughly $15,000-$16,000 in LCFF-equivalent funding. Fixed costs (facilities, administration, transportation) do not decline proportionally.
Salary step-and-column increases (1.5% annually), growing pension contribution rates (CalPERS rising to 26.90%), and health benefit inflation drive expenditures upward even as enrollment falls. Salaries and benefits consume about 76% of the budget.
The $11 million in Redevelopment Agency transfers drops to zero in 2026-27 and beyond in the multi-year projection. This single revenue loss represents 7% of the entire General Fund budget and is the primary driver of the 2026-27 revenue decline.
Federal pandemic-era funds (ESSER) and other one-time grants that supported positions and programs have been fully spent. Positions funded by these one-time sources must now be absorbed by the General Fund or eliminated.
Key Budget Assumptions
| Assumption | 2025-26 | 2026-27 | 2027-28 |
|---|---|---|---|
| District Enrollment | 6,310 | 6,239 | 6,212 |
| LCFF COLA | 2.30% | 2.41% | 3.06% |
| CalSTRS Rate | 19.10% | 19.10% | 19.10% |
| CalPERS Rate | 26.81% | 26.40% | 26.90% |
| Property Tax Growth | 5.00% | 5.00% | 5.00% |
| Step & Column | 1.50% | 1.50% | 1.50% |
Source: 2025-26 Second Interim Budget Assumptions (presentation, slide 4).
School-Level Funding (SPSA Budgets)
Each school's Single Plan for Student Achievement (SPSA) budget captures supplemental site-level spending, including enrichment, counseling, professional development, and materials. These budgets do not include base operating costs like teacher salaries and facilities, which come from the General Fund.
| School | Total SPSA | Per Pupil | Title I | District | PTO/PTA | Measure U | Prop 28 |
|---|---|---|---|---|---|---|---|
| Orion | $1,062K | $1,934 | — | $150K | $721K | $131K | $59K |
| Adelante Selby | $854K | $1,356 | $73K | $383K | $165K | $147K | $86K |
| McKinley MIT | $795K | $1,982 | $27K | $616K | — | $75K | $77K |
| Hoover | $734K | $1,114 | $128K | $307K | — | $183K | $116K |
| Roy Cloud | $695K | $1,046 | — | $292K | $215K | $117K | $71K |
| Henry Ford | $681K | $1,476 | $61K | $324K | $75K | $147K | $75K |
| Clifford | $665K | $1,001 | $73K | $129K | $196K | $173K | $93K |
| North Star | $564K | $1,020 | — | $44K | $326K | $135K | $59K |
| Kennedy | $563K | $714 | $76K | $159K | $20K | $192K | $117K |
| Roosevelt | $410K | $1,192 | $55K | $158K | — | $109K | $88K |
| Garfield | $243K | $936 | $55K | $19K | — | $79K | $90K |
| Taft | $238K | $733 | $69K | — | — | $97K | $72K |
Source: 2025-26 School Plans for Student Achievement (SPSAs). Budget data extracted from SPSA Budget Summary pages.
Understanding the Funding Sources
Title I: Federal grants for schools with high percentages of low-income students. Seven RCSD schools receive Title I funds. North Star, Roy Cloud, and Orion do not qualify.
District (ATSI/Categorical): Additional district funding targeted at schools identified for Additional Targeted Support and Improvement (ATSI). McKinley receives the largest allocation ($610K) as an ATSI-identified school.
PTO/PTA: Parent fundraising varies dramatically: North Star's PTA raises $326K (58% of its entire SPSA), while Garfield, Taft, Hoover, and Roosevelt report $0 in parent fundraising.
Measure U: Parcel tax funds distributed to schools for enrichment, music, art, and technology. Most schools receive between $48K and $192K.
Prop 28 (Arts): State Proposition 28 (2022) funds dedicated to arts and music education, distributed based on enrollment and demographics.
The equity picture is complicated. High-need schools receive more public categorical funding (Title I, ATSI) but still cannot close achievement gaps. Low-need schools like North Star receive the lowest per-pupil public funding and depend heavily on parent fundraising for basics like counselors and enrichment. Neither end is adequately served by the current model.
Key Documents & Links
Budget Documents
- 2025-26 Adopted Budget & Interim Reports (District website)
- District Funding Overview — explains community-funded status
- RCSD as a Community-Funded District
Bond & Parcel Tax
- Measure S (2022 Bond) — Projects & Updates
- Citizens' Bond Oversight Committee (Measures T & S)
- Measure U Parcel Tax
- Measure U Citizens' Oversight Committee
- Measure U Exemptions (Seniors & Disabled)
LCAP & Accountability
- 2025-26 Adopted LCAP — Local Control and Accountability Plan
- California School Dashboard — RCSD
Board Meetings
- GAMUT Board Portal — Agendas, minutes, and official documents
- RCSD YouTube Channel — Board meeting recordings
- RCSD.info Meeting Index — Searchable meeting transcripts and timestamps
External Coverage
- San Mateo County Registration & Elections — official Measure C results
- RWC Pulse: Measure C Trails Approval Threshold (election-night, June 3, 2026)
- RWC Pulse: Parcel Tax on June Ballot (Feb. 2026)
- RWC Pulse: District Cuts $6M from Budget (Feb. 2026)