School Board Sets Aside Funds for Measure H Refunds

The Alameda Unified School District will designate $5.8 million of its reserves for potential refunds of Measure H tax payments, the board of education decided Tuesday night, according to an article on The Alamedan.

The board's decision came partially in response to a January 2013 notification from the Alameda County Office of Education that the AUSD budget needed to show how the district would pay back any required refunds.

The $5.8 million represents about 80 percent of the district's potential liability.

The California Court of Appeal ruled earlier this month that the Measure H parcel tax for Alameda schools passed by voters in 2008 is partially invalid.

The court sent the case back to Alameda County Superior Court, which had originally upheld the tax in a lawsuit filed in 2008 by George Borikas. Borikas asserted that the tax violated state law requiring school district taxes to "apply uniformly" to all taxpayers and property. Measure H applied different rates to residential and commercial properties.

The school district has said that the Court of Appeal position could result in a substantial financial loss of $7.4 million.

You may read The Alamedan's complete article here.