PENNINGTON: School officials mull ways to address budget shortfall

Interim Superintendent Thomas Butler: “This is really the first year of a multi-year problem”

By John Tredrea, Staff Writer
   A draft school district budget for 2009-10 is about $2 million more than the district is allowed to spend by the state’s budget cap law, and school officials are working to get the spending plan into conformity with what the state permits.
   ”Everything is on the table,” said Interim Superintendent Thomas Butler Tuesday afternoon. “This is really the first year of a multi-year problem.”
   Summarizing a power-point budget discussion presented to the Hopewell Valley Regional Board of Education Monday night, Dr. Butler and school district Business Administrator Robert Colavita said the bottom line of the draft budget is $69.3 million.
   However, the total estimated revenues the district will receive in 2009-10 total $67.3 million. School officials are exploring ways to close the $2 million gap, a major cause of which is the state law that allows school districts to increase their tax levy a maximum of 4 percent over the levy of the preceding year.
   Possible strategies for closing the $2 million gap, or budget shortfall, under consideration and study by school officials include:
   • A 15 percent reduction of day to day operational expenses.
   • Holding utility costs at the 2008-09 level.
   • More efficient transportation.
   • Reduced health benefits costs.
   Dr. Butler and Mr. Colavita said implementation of all the strategies now under consideration still would leave the district about $250,000 short of closing the $2 million budget gap. That money could be gained by addressing the fiscal implications of:
   • Class sizes.
   • Staffing in all areas in all school buildings.
   • Instructional programs.
   • Extracurricular programs.
   • Athletics.
   • Further reductions in energy and health benefits costs.
   • More busing economies.
   • Restricting spending in 2008-09 as much as possible.
   Notice of how much aid Hopewell Valley will get this year is not expected from the state before March 12.
   ”That date has been getting pushed back further every year,” Mr. Colavita said.
   He and Dr. Butler said a reduction from the amount of state aid received last year is a real possibility. Both men referred to the district’s longstanding position against increasing class sizes or eliminating programs, but admitted hard decisions may have to be made in those areas in the months ahead, given the twin pressures of the cap law and a possible cut in aid.
   ”Four percent is 4 percent,” said Mr. Colavita. “We’d have the same struggles in that regard even if there were no recession.”
   Asked about the feasibility of cutting day to day operational expenses 15 percent, Dr. Butler said, “It means being a lot more judicious in your spending, certainly. On every possible expenditure, you have to ask yourself, ‘Do I need it? Or do I want it? Which is it, really?’”
   School officials also drafted a 2009-10 budget calling for no tax increase. The shortfall on that spending plan is $4.6 million.