BCHD Misrepresents its Ratio of Program Costs to Property Taxes

In it's June 12, 2024 memo, BCHD represents the Priority Based Budget (PBB) costs are "fully loaded" on page 13. BCHD also referred to those costs in California Public Records Act responses.

BCHD Memo Transmittal block from https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/2697912/2FY24-_1.PDF

Based on BCHD's self identified fully loaded program costs, BCHD "delivers" only $12.4M (p 31) annually in programs against $5.2M in property tax revenue (p 24)

Simple 3rd grade math demonstrates that BCHD only "delivers" $12.4M in program expenses against $5.2M in property taxes which results in $2.38 in "services" per $1 in property taxes. BCHD frequently misrepresents this amount at $3 or more using BCHD gross expenditures, many of which are not services for District residents.

Furthermore, BCHD revenues all derive from the property taxes, assets, land, and rents of Taxpayers. Taxpayers purchased the land. Taxpayers purchased the buildings. Taxpayers pay the Property Taxes.

BCHD's Claim below is unequivocally false.

However, BCHD's annual revenues are best described as coming sufficiently from Taxpayers and Taxpayers assets to cover nearly 100% of services delivered: (1) Property Taxes from Hermosa Beach, Redondo Beach and Manhattan Beach ($5.2M), (2) Lease revenues from Taxpayer-owned and funded Prospect campus land and buildings ($4.1M), Taxpayer interest off of cash holdings ($0.2M), and Revenue from Taxpayer-owned and funded Sunrise Assisted Living ($1.9M). Taxpayers from Property Taxes and their land and building holdings contribute $11.4M annually in revenues against BCHD's fully loaded program costs of $12.4M.

In short, BCHD revenue operations contributes a mere $1M toward the $12.4M in services, while Taxpayers directly provide $11.4M. That results in BCHD providing $1.19 per $1.00 of Property Tax based on BCHD revenue contribution of $1M in services contribution on $5.2M of property taxes.

EITHER WAY - BCHD'S CLAIM IS FALSE.

BCHD Memo Page 24, Property Taxes $5.2M

BCHD Memo Page 31, Fully Loaded Program Costs $12.4M