Local governments in California have three main options to raise revenue for schools: a parcel tax, voluntary contributions, or a sales tax. Parcel taxes must be a flat tax per parcel and require a 2/3 majority to pass. Between 1983-2009, voters approved 261 of 486 parcel tax measures, a 54% passage rate. Parcel taxes are more likely to pass in wealthier districts with smaller student populations and fewer low-income students. Two examples of recent parcel tax measures in Alameda County are provided, one in Alameda Unified that passed in 2008 and one in Oakland that failed in 2008.

1. Local Revenue
Options

2. Options
Parcel tax
Voluntary contributions
Sales tax
In 2004, Mariposa County USD tried to pass a
0.25% sales tax for new school buses (county
school district) – Failed: 62.6% Yes

3. Parcel tax
Flat tax per parcel, cannot be based on
value
Must specify use
Need 2/3 to pass
1983 through June 2009: voters approved
261 parcel taxes in 486 elections
423 would have passed under a 55%
threshold, and 449 received a majority vote

4. Parcel tax
Year # Elections # Passed Percent passed
1983-1989 86 32 37%
1990-1995 117 52 44%
1996-1999 45 38 84%
2000-2002 42 27 64%
2003 34 17 50%
2004 41 22 54%
2005 35 18 51%
2006-2007 26 12 46%
2008 40 29 73%
2009 20 14 70%
Total 486 261 54%

5. Source: Edsource.org, Parcel Tax Election Trends

6. Parcel taxes: Richer, smaller
districts
178 districts have attempted to pass a
parcel tax, some multiple times
About 90% of the elections were held in
districts that were below the state average
of percent low-income students
Only 5 districts that have passed parcel taxes
since 2000 serve higher-than-average share
of low-income students
All in the Bay Area, some with lots of non-
residential property

7. Source: Edsource.org, Parcel Tax Election Trends

8. Parcel tax
ADA # Elections # Passed Percent passed
<500 47 31 66%
500-1000 50 34 68%
1000-2000 76 38 50%
2000-3000 82 47 57%
3000-5000 72 32 44%
5000-10,000 78 46 59%
10,000+ 81 33 41%
Total 486 261 54%

9. Source: Brunner and Sonstelie, “California’s School Finance
Reform: An Experiment in Fiscal Federalism”, 2008

10. Parcel tax options
Supposed to be flat tax but some districts
base tax on square footage or units ($/unit
in multi-unit buildings), differentiate
residential from commercial/industrial,
include inflation adjustment
No legal limit on duration (can be
permanent)

11. Alameda Unified, Measure H, June
2008
“To offset severe state budget cuts to Alameda
schools, minimize school closures, and protect
the quality of education, student safety, class
sizes, excellent teachers and staff and to restore
prioritized cuts to music, athletics, advanced
placement courses, shall Alameda Unified
School District levy a temporary, 4-year
emergency tax of $120 per residential parcel
and 15 cents per square foot for
commercial/industrial parcels (see the voter
pamphlet), with exemptions for seniors, citizen
oversight and all funds staying local?”

12. Alameda Unified, Measure H, June
2008
66.9% Yes
Lawsuits to invalidate based on:
Not ‘uniform’
Different ‘classes’ of property or taxpayers
Not specific enough to be ‘special’ (versus
‘general’)
Settlement – new tax to be on June 2010
ballot

13. Oakland, Measure N, Nov 2008
"Outstanding Teachers for All Oakland Students
Tax”
“"To attract and retain highly qualified and
credentialed teachers for Oakland's District-run
public schools, and to support successful
educational programs at Oakland's public charter
schools, shall Oakland Unified School District
levy $10 per parcel per month ($120 per year) for
10 years with an exemption for low-income
residents, mandatory annual audits, an
independent citizens' oversight committee, and all
money spent to benefit Oakland Schools and all
Oakland students?”

14. Oakland, Measure N, Nov 2008
Failed: 61.45% Yes
Parcel tax measure on Feb ballot ($195/parcel
extension) passed with 79.4%
Of the $12 million raised, 85 percent would go to
teacher salaries (7% raise if distributed evenly)
and 15 percent would be directed to charter
schools in the district
Supe of Alameda County schools: “The measure
lacks input and support from the Oakland
educational community… There is no clarity on
how the money would be distributed to district
teachers and the 15 percent allocated to charters
is left entirely without direction.”