PHS tuition, insurance lead to spending hike
By: Casha Caponegro
Township taxpayers could pay 1.4 percent more in school taxes in 2002-2003 if a $9.85 million school budget introduced Tuesday is approved by voters.
An increase in tuition for Cranbury students attending Princeton High School and in health and liability insurances were the driving factors in a proposed 11.9 percent spending increase.
The budget was unanimously passed by the school board and sent to the county. A public hearing, in which residents will be able to comment on this budget, will take place Thursday. The school board will take its final vote on the spending plan following this hearing.
Residents will be able to vote on this budget at the school board elections on April 16.
If approved the budget will increase school taxes 2.7 cents per $100 of assessed valuation, a 1.37 percent increase from last year’s tax rate of $1.965 to $1.992.
Under the proposed rate, the owner of a house assessed at the township average of $275,000 would pay $5,478 in school taxes, a $74.25 increase.
Last year voters approved an $8.8 million spending plan, which raised school taxes 5.64 percent, or 10.5 cents, from $1.86 to $1.965.
School Business Administrator Walter Pudelko said that an expected enrollment increase of 20 students attending Princeton High School next fall is the driving force behind this year’s tax increase.
There are currently 182 students enrolled at PHS, which will increase to 202 students next fall.
"The increase in the number of children at PHS is really what’s driving tuition increases," said Mr. Pudelko.
About 23.6 percent of the budget, or $2.33 million, will go to PHS tuition. That amount is up about 13.1 percent from last year’s PHS tuition of $2.06 million.
The PHS tuition per child will be $11,769 per student, a 3.9 percent increase from last year’s $11,318 tuition.
Also driving the tax raise is a significant increase in the cost for insurance in the school district, including health care, liability and workman’s compensation.
"Insurance costs have gone up significantly in the past year," said Mr. Pudelko, who said the events of Sept. 11 are most likely the cause of these insurance increases.
The cost for health care in the school district is expected to rise 26.4 percent from $735,729 to $930,000; liability costs are expected to be up 25.2 percent from $21,000 to $26,300 and workman’s compensation costs are likely to increase 85.7 percent from $21,000 to $39,000.
Also adding to the district’s spending is its desire to hire a new resource room teacher at a yearly salary of $40,000 and $10,000 in employee benefits.
Budgeted capital projects are expected to increase by 163 percent, from $43,688 to $115,000.
"This is primarily attributed to the fact that we want to keep on schedule with our five-year technological plan," said Mr. Pudelko. About 73.9 percent, or $85,000, of the total will be spent on the technology.
The district is anticipating $596,386 in total state aid, the same as last year. The district anticipates receiving $114,025 for transportation, $461,991 for special education, $10,476 for bilingual education and $9,894 for academic achievement awards.
The district expects to earn $10,000 in interest on its accounts.
The remainder $9.25 million will be raised from property taxes.
In addition to the $9.85 million budget, the district will also have a 3 percent fund balance of about $295,748, which will be set aside in case of an emergency.