Members question board’s

borrowing funds from twp.

By vincent todaro

Staff Writer

EAST BRUNSWICK — The Board of Education is taking advantage of the township’s financial capability, but not all board members are thrilled with the recent borrowing of funds.

At its Nov. 7 meeting, the board approved two measures that will allow the district to enter into an interlocal service agreement with the township and use the township’s financial services, which provide "highly competitive" interest rates, according to the resolution.

The agreement allows the board to borrow $2.9 million, which it will have to repay over a five-year budget cycle.

Board member Charles King said the board is not actually borrowing from the township, but rather using its borrowing capabilities. The board will save money on interest by using those services.

However, board member Michael Danatos was not pleased with the board’s borrowing nor its decisions on how to spend the money.

He said he was concerned the board was piling up too much debt by borrowing more money, and he also questioned the board’s priorities.

The money is primarily for three purposes: $900,000 is for technology improvements at Churchill Junior High School, including wiring and computers in classrooms; $400,000 for improving technology district-wide; and the remaining $1.6 million is for other items for Churchill.

King said the $1.6 million is divided as follows: $350,000 for equipment, $1.1 million for built-in furniture, and $150,000 for carpeting.

The district is over-budget on the Churchill work and needs the additional money to finish the project, he said.

Board member Holly Howard said the technology is needed to get the expanded and improved Churchill school "off the ground."

Danatos recommended deferring the purchase of some computers and using that money to finish the school, rather than going further into debt.

He said the board entered into a $5 million interlocal agreement just last year.

"It is necessary at this point to continue with our computer replacement," Howard responded.

Danatos said the board needs to reconsider its priorities because of its financial constraints.

Board member Charles King added that the board should look into how much it has left from the previous interlocal agreement before it approves further borrowing.

Also, noting that the 2002-2003 school budget was defeated by voters, King said representatives of the township and the board resolved to cut some of the funds that had been earmarked for technology in the board’s initial budget. The board agreed to take $300,000 out of the $500,000 it had originally budgeted, he said, but is now putting $400,000 back in and borrowing the money to pay for it.

Board member Patrick Sirr argued that the $900,000 for technology at Churchill was an important expenditure. He said the new building added onto the school needs furniture and computers.

"If we want our kids to be successful, they have to have these computers," he said.

King asked that the measure be split so that he could vote in favor of the funds needed for Churchill, but against the district-wide technology improvements.

Danatos said he agreed that the Churchill addition project needs to be finished, but that the money the board was borrowing and putting into its budget in this case was not voter-approved. He said that because it is through an interlocal agreement, the money will show up in the budget as voter-approved debt service even though it is not.

He added that the board would be foolish if it did not look for alternatives to further borrowing.

The board split the measure into two parts, both of which were approved. Danatos and King voted against the $400,000 for district-wide technology, and Danatos also cast a dissenting vote on the $2.5 million for Churchill, citing his debt concerns.