Palo Alto School Board Renews Parcel Tax at Lower Rate

The board unanimously voted to reduce the tax rate to $800 per parcel for 4 years, aiming to maintain community support.

Published on Feb. 11, 2026

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The Palo Alto Board of Education unanimously voted to renew the district's parcel tax on the June ballot, lowering the rate to $800 per parcel for a 4-year period. This marks a shift from previous renewal campaigns that sought higher rates with annual inflation adjustments over longer periods. The board made this decision after polling showed 72% of residents supported renewing the tax at the current rate, and in response to concerns about the tax burden on some community members.

Why it matters

Palo Alto's parcel tax has provided critical funding for the district's extensive educational programming since 2001. However, with declining enrollment and increasing per-pupil funding, some residents have questioned the need for the full tax rate. The board's decision to lower the rate aims to balance the district's funding needs with community support.

The details

The current parcel tax, set to expire in June 2027, is $904.92 per parcel. The board originally considered renewing it for 7 years at $941 per parcel with a 2% annual inflation adjustment. But after a 2025 poll showed 72% support for renewing at the current rate, and concerns from some board members and residents about the tax burden, the board unanimously voted to lower the rate to $800 per parcel for 4 years.

  • The current parcel tax will expire in June 2027.
  • The renewed parcel tax will appear on the June 2 ballot in 2026.

The players

Palo Alto Board of Education

The governing body of the Palo Alto Unified School District that unanimously voted to renew the parcel tax at a lower rate.

Shounak Dharap

The president of the Palo Alto Board of Education who expressed concerns about passing the parcel tax at the originally proposed higher rate.

Sunita Ganapati

A member of the parcel tax oversight committee who spoke in a personal capacity, applauding the board for discussing reduced tax options.

Todd Collins

A former Palo Alto school board member who noted that the parcel tax now represents less than 5% of the district's total funding due to increasing per-pupil funding.

Tom Culbertson

The president of the Palo Alto teacher's union who stated that the community demands and expects the best programs, which requires significant investment.

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What they’re saying

“I have a concern about passing the parcel tax. I know the polling was good. I think that there is significant opposition to the parcel tax as it was presented at the last meeting, and I would much rather see a parcel tax at a lower rate than no parcel tax at all.”

— Shounak Dharap, Board President (paloaltoonline.com)

“It would seem the district's projected property tax growth and enrollment in five years indicates a significant, in-excess-of-normal cushion that you'd have in the budget.”

— Sunita Ganapati, Parcel Tax Oversight Committee Member (paloaltoonline.com)

“As a result, per pupil funding now stands at $35,000, more than double the level in 2014, and in 2014, we already felt well-funded. The parcel tax, at about $15 million a year, now represents less than 5% of total funding, and becomes a smaller percentage each year.”

— Todd Collins, Former Board Member (paloaltoonline.com)

“We are an incredibly well-funded district, and we're an incredibly high performing district. This community just really demands and expects the best programs across the board, and that requires a lot of investment to make happen.”

— Tom Culbertson, Palo Alto Teacher's Union President (paloaltoonline.com)

What’s next

The renewed parcel tax will appear on the June 2, 2026 ballot for Palo Alto voters to consider.

The takeaway

Palo Alto's school board has sought to balance the district's funding needs with community concerns about tax burdens, renewing the parcel tax at a lower rate in an effort to maintain support for critical educational programs.