BY LAYLI WHYTE
Staff Writer
RUMSON –– Members of the local school board believe they have found a way to finance needed building repairs despite stringent new regulations that limit school budgets.
Restricted by the new school budget cap law, S-1701, the Rumson-Fair Haven Regional High School board of education is taking advantage of a type of reserve account that permits school districts to set aside funds for repair of existing facilities.
The maintenance reserve fund has been an available option for schools since October 2001, according to Margaret Neathery, business administrator at RFH, and would act much like a capital reserve fund, allowing schools to carry money over from year to year without adding it to surplus.
RFH board member and chair of the buildings and grounds committee Kathleen Gasienica brought the program to the board’s attention at last week’s meeting.
Neathery said this is a good year for the district to take advantage of the reserve fund because of the new restrictions placed on school budgets since former Gov. James McGreevey signed S-1701 into law last summer.
S-1701 capped school budget surplus at 3 percent for the 2004-2005 school year and lowers it to 2 percent of the budget for the 2005-2006 school year.
Any excess surplus must be returned to the taxpayers in the form of property tax relief.
Under S-1701, the general budget can only be increased as a whole by 3 percent from year to year.
The maintenance reserve fund would be used for funds that are to be allocated toward different maintenance projects that would help to increase the life of the building and grounds of the school.
Routine maintenance, such as cleaning, landscaping and inspecting for problems would not be covered by this fund.
But items such as patching minor cracks in the roof, repairing locks on doors and windows, painting walls and replacing tiles would be covered because they would help maintain the integrity of the building.
Larger scale projects such as roof replacements or renovations, any major structural repairs or major interior renovations, such as demolishing a wall, would remain covered by the capital reserve fund.
“A capital project is when you build something new,” explained Neathery, “so the life expectancy of that is just beginning. Required maintenance is work done on a structure that is already built.”
“It’s for extending the useful life of an asset,” said board member John Hendrick, “but not replacing that asset.”
Neathery said the fund would act as a protection for the building for years to come.
“One fear that districts have with going down to such a low budget is the ‘what ifs,’ ” said Neathery.
She said this is one way of putting money aside for smaller projects that would not be considered capital fund projects.
“It’s better than no alternative,” said Gasienica.