By Greg Forester, Staff Writer
The 2009-2010 Princeton Regional schools budget and what kind of tax increase, if any, should be passed on to taxpayers during the continued economic downturn was the subject of a Princeton Regional Board of Education budget workshop Tuesday night.
The discussion revealed that taxes paid by Princeton Borough property owners are sure to increase next year.
Business Administrator Stephanie Kennedy told the board that even a budget with zero increase translates into a $233 increase for the average borough homeowner and an $8 increase in school taxes for the average homeowner in Princeton Township. The discrepancy stems from the formula used uses to calculate each municipality’s share of the total tax burden, based on its volume of taxable property.
The formula resulted in a borough share of 33.3 percent of the total tax levy, up .5 percent from last year. The township’s share of the total tax levy will be 67.7 percent, down from 68.3 percent last year.
Ms. Kennedy said the district still lacks some budget information from the state, meaning concrete information on various budget increases and the impact on taxpayers was unavailable Tuesday. Despite the lack of data, board members spent some of Tuesday night debating the appropriate size of a budget increase with respect to budget information the district does have.
A 2009-2010 budget with a 4 percent increase would result in no programmatic cuts, according to Ms. Kennedy, who said the difference between a 4 percent increase and a 2 percent increase was approximately $1.1 million in revenue,.
She noted contractual increases in salaries and health benefits represent an automatic $2.1 million increase over last year’s figures.
Also impacting this year’s budget was an estimated $370,000 loss in investment revenue, according to Ms. Kennedy.
Good news came in a confirmation that $550,000 in federal stimulus funds is on the way, with the same amount expected next year.
Construction work related to energy efficiency is eligible for $140,000 of the federal funds.
The $410,000 balance is planned for use in special education funding, according to Superintendent Judy Wilson.
”It’s a windfall for the taxpayers,” said board Vice President Rebecca Cox, of the stimulus.
The Princeton Charter School required an 11 percent increase in funding in the new budget, according to Ms. Wilson. The increase translates to $548,000, or nearly the same amount of money expected from the federal government.
Some board members expressed concern that the state government, which handles incoming federal stimulus dollars, could make additional aid cuts in light of what the district is set to receive from the federal government.
The district already expects reduced state aid, in light of “what we’re hearing from Trenton. I wouldn’t be surprised if (state aid) shrank,” said Ms. Wilson.
Throughout Tuesday’s workshop board members spoke of the proper size of increase, especially in light of the events of 2007, when voters in Princeton Borough voted down the budget for the first time in 17 years. Mr. Hegedus said he believed the board’s decision to submit a 2008-2009 budget with a 3.3 percent increase had built up significant “goodwill” in the community.
However, Ms. Wilson said that a budget with a 3.3 percent increase in 2009-2010 “I think, is a very difficult context as (revenues) continue to plummet in every possible way.”
Board member Joshua Leinsdorf said the board needed to carefully weigh cuts and justify decisions not to cut programs or staff to the community, which “values education.”
Board member Dorothy Bedford said community members had informed her that an increase of less than 2 percent could be acceptable by the community.
”If it’s 3 percent, it says ‘we don’t get it,’” Ms. Bedford said.
Some board members said taxpayers would be looking to see what cuts were made and how many positions were eliminated.
”There’s a whole lot of stuff I would like to throw out the window,” Mr. Leinsdorf said.
Much of the board’s Tuesday discussion was “like reading the ether,” according to board member Walter Bliss, who said the economic climate meant voters might “very well vote down whatever budget we put up.”
”I am totally in favor of a 0 percent budget,” said Daniel Haughton, another board member. Taking $1 million out of the budget would not “destroy the Princeton Regional School District,” he said.
The board will meet again Feb. 17 for a second budget workshop, with a preliminary budget due at the Mercer County superintendent’s office by March 18.
With county approval, the district plans on having a March 31 public hearing on the budget.

