Mayor and council question
board’s request to borrow
Board drops request to use munic. borrowing power for $400K in technology
By vincent todaro
Staff Writer
EAST BRUNSWICK — The Township Council has put the brakes on a Board of Education request to use municipal services and borrow $2.9 million for district expenditures.
Council President Donald Klemp said the governing body is hesitant to approve the request for an interlocal service agreement between the board and the township. The board recently passed two resolutions asking that the governing body allow it to use township financial services to bond for school district purchases such as supplies and technology.
The board decided earlier this month that it would seek to borrow $2.5 million to finish furnishing the newly renovated Churchill Junior High School and also supply it with technology. In a second request, the board sought $400,000 for district-wide technology improvements.
However, the board is no longer seeking to borrow the money for district-wide technology. Township officials were concerned with that request because they had resolved to cut technology from the defeated school budget earlier this year.
By using the township’s borrowing power rather than its own, the board can get bonds at an interest rate of about 1.4 percent. On its own, the district would get an interest rate of about 3 percent, according to board Vice President Charles King. The board would not be borrowing money from the township, but would simply use its borrowing capability.
But, keeping in mind that the council recommended a reduction in district-wide technology expenses when reviewing the board’s defeated 2002-03 budget last spring, Mayor William Neary and Klemp said they will not comply with any request until all their questions about the expenditures are answered.
"We want to find out exactly what it’s all for," Neary said. "We’re very concerned that the money will be put back into what’s been cut."
When that budget was defeated by voters in April, the council demanded that $2.6 million be cut. The board agreed, and district-wide technology expenses were reduced by $300,000.
When voting on the interlocal agreements, King and board member Michael Danatos both opposed the $400,000 expenditure. Danatos also voted against the $2.5 million that would pay for equipment, furniture, carpeting and technology at Churchill, which is being expanded to accommodate more students. He said the district should seek alternatives to going further into debt.
"If they want us to go into debt for something outside the budget, I’d be opposed," Klemp said. "I don’t want to participate in them going around the will of the voters."
He said he has questions about both proposed expenditures.
"Prove to us that it’s needed and you’re not just circumventing the cuts," Neary said.
The council may get their answers directly from the board.
Last week, King said the board decided that he and board President Michael Baker should appear before the council to explain why the money is needed. The board has asked that the discussion be placed on the next available council meeting agenda.
At the same meeting, the board also decided to ask for only the $2.5 million for Churchill, not the $400,000 for district-wide technology, King said.
"I would be comfortable giving the rationale for the $2.5 million, but not so inclined to do that for the $400,000," he said.
King said there is a connection between the $400,000 asked for as part of the agreement, and the money cut from the budget in April. Asking the council and residents to pay for that now would be "insulting," he said.
He said the board "re-thought" its plan to ask for the $400,000 and through a consensus vote, decided against it.
King said he strongly supports the money for Churchill, though.
"We’re not going to open Churchill without furniture, and things the science labs need, and chairs in the cafetorium," he said.
Klemp and Neary said Monday night they would welcome the board members to present their case.
"We’d be happy to listen to them," Klemp said.
Neary also said he wants to know why the board did not anticipate having to spend the extra money for Churchill when preparing the $26.8 million referendum for that project, which was approved by voters in 2000. The school’s two existing buildings are being improved, while a new core facility is being constructed between them, enabling all of the structures to be connected.
That project is expected to be completed by the start of the 2003-04 school year.

