2026 Measure H School Parcel Tax: Anticipated to grow annually at a 3% CAGR starting 2028, well above current 2% CAGR

The current parcel tax has annual tax increases limited to a maximum of 2%. The actual increase is decided by the School Board each year.

Each year since 2019, the School Board decided to raise the parcel tax by the maximum 2% allowed in the parcel tax language approved by voters.

The new parcel tax, put on the ballot as Measure H, will increase the maximum allowable increase to 3%. Clearly the 2% was deemed insufficient and the Budget Advisory Committee advised the Superintendent and School Board to ask for a maximum 3% annual increase. So taxpayers should expect 3% annual increases, barring some kind of miracle.

Don’t be fooled by what appears to be a small additional 1% increase (3% – 2%). The additional percentage is annual and the percentage increase is applied to the prior year’s parcel tax which has already grown from previous increases. Thereby the tax grows compounding exponentially. It is not additive or incremental.

If the School Board increases the parcel tax to the maximum allowable increase each year, the new parcel tax (Measure H) will have a Compounded Annual Growth Rate (CAGR) of 3%. A “True Renewal” would continue the existing 2% CAGR.

The “Not a Tax Increase” marketing of Measure H is only true for 2027. It is false and misleading advertising.

It should be clear why Prop 13 and the current parcel tax limited the annual increases to 2%. (To contain the exponential growth factor.)

These higher parcel taxes are primarily dumped on future Piedmonters, likely pricing out many Gen Alpha Piedmonters currently entrusted to the same School Board trustees that calls Measure H “Not a Tax Increase”.

PUSD needs a True Renewal of the existing parcel tax with a maximum allowable CAGR of 2%.

No genuine need or explanation for a 3% CAGR was presented to the School Board. There is no transparency or accountability as to how the funds from the anticipated tax increase will get spent.