ALLENTOWN: Higher taxes, activity fees explored in UFRSD

by Judy Bocklage, Special Writer
   ALLENTOWN — Homeowners in Upper Freehold and Allentown could soon see their school taxes rise by hundreds of dollars a year. And parents of students in the Upper Freehold Regional School District could start paying fees for their children’s extracurricular activities.
   That’s the picture as district officials, well aware of the effects of such measures, review options for cutting costs and looking for alternate revenue sources leading up the April 21 school elections.
   At a work session in early February school board members asked Superintendent Richard Fitzpatrick to prepare scenarios showing the effects on average homeowners of tax increases of 1 percent through 4 percent.
   Legislation signed by Gov. Jon Corzine in 2007 put a 4 percent annual cap on property tax increases used to fund school districts, but the Upper Freehold Regional board fears voters won’t approve a tax hike of that size, considering economic conditions. Among the cost-cutting options being reviewed is considering dropping some cherished plans, such as addressing the issue of class size.
   The district also is considering a “pay to play” plan under which parents would pay extra for their children to participate in athletics and extracurricular activities. The proposal envisions a fee of $50 per athlete per sport and $25 for extracurricular activities such as the marching band, board President Joseph Stampe explained Sunday. That, he said, would generate an estimated $50,000 a year for the district.
   Another possible revenue generator under review is to charge parents a late-bus fee for their children who participate in after-school activities,” Mr. Stampe said. Parents would pay $25 per semester, bringing the district about $40,000 a year in extra revenue, he said.
   For the current school year, the district’s tax levy brought in about $16.9 million. According to Dr. Fitzpatrick, a 4 percent tax increase for the 2009-2010 school year would generate about $17.6 million and would mean a tax increase of about $315 for the average homeowner in Allentown, and about $538 more for the average homeowner in Upper Freehold.
   A 3 percent tax hike would generate about $17.4 million, and would be enough to maintain current programs at the status quo. It would mean an increase of about $279 for the average Allentown homeowner and about $481 more for the average homeowner in Upper Freehold.
   ”If we did nothing additional, added no new programs or teaching staff, the 3 percent tax levy would be needed to cover expenses,” Mr. Stampe said. However, he said, he suspects that the lack of progress toward the board’s stated goals would disappoint many parents.
   ”You can’t put a miser budget forward when the community has aspirations for its kids,” he said.
   For example, he said, the board wants to hire more teachers for history, health and math classes at Allentown High School at an additional cost of about $108,000 in an effort to reduce class sizes.
   The board also wants to add one full-time teacher for the seventh and eighth grades at an additional cost of about $35,000, Mr. Stampe said.
   Another “extra” the board wants: using the district’s own custodial crew to clean the elementary school, instead of an outside occupational-training firm. The board isn’t satisfied with the cleanliness of the facility, Mr. Stampe and other board members have said. To use its own crew, the district would have to hire an additional six people and a supervisor. Cost: $55,000.
   The board has targeted $6,000 in miscellaneous expenses that could be cut, such as trips for board members to Atlantic City for an annual training conference, and using volunteers instead of professionals to take photos at school functions.
   While those amounts are relatively small, “we want the public to know we’re looking at every line item to see where we can reduce costs,” Mr. Stampe said.
   In addition to the 4 percent and 3 percent tax increase proposals, the board also is considering a 2 percent hike, which would bring in about $17.26 million, and a 1 percent tax increase that would yield about $17.1 million. Both of those options, as well as no increase in the tax levy at all, would require paring expenses much further.
   ”Every member of the board is aware of the current economy and they are very concerned about any tax increase,” Mr. Stampe said. “We’re also mindful the district has made strides… and we do not want to take a step backward.”
   Dr. Fitzpatrick told the board at its budget work session Wednesday that he is focused on recommending cuts that would be least detrimental to the students. Like the board members, he is well-aware of the effects of the economic downturn on homeowners, the superintendent said.
   ”At the same time, our job is to be advocates for the kids,” he said. In fact, he said, after spending hours studying the budget he feels “We shouldn’t be cutting anything at all.”
   On the revenue side, the school board is considering using $350,000 the district earned in bond interest last year to help balance the 2009-2010 budget instead of saving the money for the following year when there will be new expenses associated with the planned opening of the $50 million middle school.
   Dr. Fitzpatrick’s analysis shows that if the board decides not to use the bond money in 2009-2010, a 4 percent tax increase would amount to an increase of about $315 for the average Allentown homeowner and about $538 for the average homeowner in Upper Freehold. However, if the bond interest is used to shore up the 2009-2010 budget, a 4 percent tax increase would mean an average tax hike of about $240 for the Allentown homeowner and about $421 for the Upper Freehold homeowner.
   There may be other sources of revenue.
   ”I’m very optimistic that we could be getting something from (President Barack) Obama’s rescue package,” Dr. Fitzpatrick said. However, he added: “It may not come in time for this budget season.”
   The district also is waiting for information on how much aid it can expect from the state, but it doesn’t expect to get that data until March 11, the day before the budget is due to county school officials for approval.
   In the current school year, state aid amounted to about $5.47 million. For now, the budget assumes there will be no increase in state aid in 2009-2010, even though student enrollment will be higher, Mr. Stampe said.
   The school board plans to conduct a public hearing in March to gauge taxpayer support for any tax increase. The exact date hasn’t been set yet.
   Meanwhile, the school board has asked the Upper Freehold Township Committee and the Allentown Borough Council to weigh in.
   If voters reject the school tax increase, Allentown and Freehold are required to review the budget. They can make recommendations to reduce expenses, either by specific items, or across the board. That recommendation would be final, although the board could appeal it to the state commissioner of education, Mr. Stampe said.
   ”We have asked to meet with (Allentown and Upper Freehold governing bodies) to get their ideas on the budget so that they are involved in the process,” Mr. Stampe said.