As we look ahead, it is important that we are transparent with you about our district’s financial outlook and the steps we may need to take to ensure long-term stability. 

Slowing Revenues

We have long anticipated that real estate revenue growth (assessed valuation, or AV for short) would slow. This is our district’s primary funding source. While we experienced an average growth rate of 8.79% in the last six years, AV growth has sharply reduced to just 2.34% this year, partly due to commercial property tax reassessments. The County Assessor has indicated that real estate revenue is unlikely to rebound in the next few years. This is not a temporary situation, which is why it’s critical that we prepare and act now. 

Rising Expenditures

At the same time, our expenditures continue to increase. New state-mandated programs, such as expanded Transitional Kindergarten (TK) and afterschool programs, add costs without dedicated funding. In addition, the rising costs of staffing—the staff that is critical for student outcomes—represent 83% of our budget.

Next Steps

MVWSD currently has strong reserves to support this year’s budget. The Board of Trustees has resolved to maintain reserves at or above 17–20% in the third year of any budget cycle. This is a wise safeguard to ensure we can weather future uncertainties.

However, due to slowing revenues—and no indication that relief will come soon—we must act now to align future expenditures with projected revenues. At their October 2 meeting, the Board of Trustees will consider budget scenarios. Over the course of the next several months, Trustees will be working to set the stage for future balanced budgets. The decisions made now will have a lasting impact on the health of our district for years to come.

The Process

Soon, we will launch a program evaluation process to carefully analyze expenditures and ensure that we retain the programs most impactful for student outcomes. In the coming months, the Trustees and I are committed to hearing from you, and welcome you to tune in to Board meetings. I look forward to seeing you at school and district meetings, where we will gather input from families and staff. We will report back on what we learn and use feedback to determine the reductions that will safeguard the aspects of MVWSD that best serve our children and their education. 

At times like these, it’s critical that we remain focused on what matters most for student learning. Thank you for your continued partnership and support as we work together to shape the future of MVWSD.
Resources:

Click here for a presentation about Budget challenges MVWSD faces
Click here for answers to Frequently Asked Questions.

More Resources:
Oct 2, 2025 Budget Scenarios Board Presentation
Oct 16, 2025 Program Costs Board Presentation
Supt Budget Letter, Sept 26, 2025
Supt Budget Letter, Sept 26, 2025- Spanish