After the proposed separation, the property and parcel tax revenue generated in Malibu would be allocated to MUSD along with applicable state and federal funding. The proposed Santa Monica Unified School District (SMUSD) would receive property and parcel tax funding generated in Santa Monica, State and federal funding, and its other local funding sources: namely sales tax and rents from SM-MUSD properties.
The City estimates that SMUSD’s “other funding” sources generate approximately $50 million per year. This is funding which SMUSD would retain after separation and would largely offset the loss of property tax revenue from Malibu.