State aid increase on way to district

But new planned cap could be ‘tough’

By: Cara Latham
   HIGHTSTOWN — The good news for the East Windsor Regional School District is that it will be receiving about $750,000 more in state aid for the 2007-2008 school year.
   The bad news is that there is a proposed state cap on the money it can raise through taxation in its next budget, which Superintendent Ron Bolandi says could cause the district to lose about $1 million in revenue and stop it from budgeting a whole lot more.
   As a result of not yet knowing more about the latter, the school board Monday delayed introducing next year’s budget. But Mr. Bolandi did say the budget would include nine new teachers and a new social worker.
   Mr. Bolandi warned that the cap could mean the district will have to make "tough decisions" when determining the budget.
   "The state has told us we’re going to receive about $17 million in state aid," said Mr. Bolandi. "In years past, we received about $16 million, so we have a $1 million increase. That looks pretty good on face value."
   But a new cap could change things.
   "It’s real nice to read the papers, and the governor saying all these districts got all this money, but if you structure a cap based on taxes, that money really is insignificant," he said.
   The proposed 4 percent cap on property tax increases was recently passed by the state Senate and Assembly but still awaits Gov. Jon Corzine’s signature, state Department of Education spokesman Jon Zlock.
   East Windsor Regional is in line to see a 4.4 percent increase in state aid, totaling $749,423, from about $16.9 million to about $17.7 million, according to the state Department of Education Web site. The statewide increases mark the first move away from flat school aid since 2002.
   Mr. Bolandi on Monday gave the board and community members "round numbers" regarding the new budget and said a tentative budget will be introduced at the board’s March 12 meeting.
   The budget is expected to be finalized for a public hearing on March 26.
   The preliminary budget, he said, is "in the neighborhood" of $78 million, the same as the current budget, and includes nine new teachers, one new social worker and capital improvements such as fixing roofs and internal roads.
   Mr. Bolandi later said the new positions are needed to address current enrollment and associated class sizes. Four of the new teachers would be at the High School, he said.
   Of the $78 million, the school district might only be able to raise about $51 million through taxation because of the possible new cap, Mr. Bolandi said.
   Last year, the district raised $52 million through taxation, he pointed out.
   If the budget stands at $78 million, the district receives state aid of $17.7 million and it can only collect $51 million from taxpayers, "the rest you have to come up with either by cutting or taking money from various sources," Mr. Bolandi said. "The various sources we have probably generate about $1 million. So, now, we’re looking at a sizable, if you will, situation of $8 million that we’re still going to be off. I’m hoping that minor explanation is wrong."
   Otherwise, if he doesn’t get the answers he’s looking for, "That $78 million budget is history," he said.
   The sources he referred to include fund balance, tuition revenue and miscellaneous revenue.
   Mr. Bolandi said this is the first time he’s ever seen a cap based on the tax levy. Rather, a cap was placed only on expenditures in years past. The 3 percent expenditure cap would be replaced if the new cap on the tax levy is approved, Mr. Bolandi said.
   "In our situation, if I’m accurate, and I hope I’m wrong, we’re looking at the potential of reducing a preliminary budget by a sizeable amount of money," he said.
   The superintendent said he did not get all of his budget information from the state until Feb. 23 and didn’t receive figures on state aid until 3:30 p.m. Monday. Therefore, there are still a lot of "unresolved" questions, he said.
   In the meantime, Mr. Bolandi said administrators will be reviewing areas in the budget and seeing where they might trim more money.
   "We’ve got to go back and find a number that is below $78 million, and we have to reconfigure the budget," Business Administrator Kurt Stumbaugh said Wednesday.
   Administrative staff has to look at "the most efficient way and effective way to carry out the instructional" goals of the district, even with less money, he added.
   Mr. Bolandi on Monday asked the public to be patient as the district tries to get all the answers it can from the state.
   "In my opinion, early on, it’s a lot of smoke and mirrors at the state level, and I’m hoping those smoke and mirrors clear up and the dust clears, and I can give you a better explanation in two weeks," he said.
   Voters defeated the last two school budgets. Last year, members from the township and borough councils trimmed half a million dollars from the budget, but residents still saw a school tax rate hike of 23 cents in the township and 14 cents in the borough.