by Lisa Rich, Special Writer
MILLSTONE — The township Board of Education has approved a tentative budget that carries an 11-cent increase in the school tax rate and cuts nine staff positions.
That hike, previously estimated at about 9 cents per $100 of assessed property value, rose in part because the district administration cut some fees for transportation and extracurricular activities.
”All along there have been complaints about residents not wanting to feel nickled and dimed,” Business Administrator Bernie Biesiada said Tuesday, the day after the board spent hours discussing the budget before giving it unanimous approval.
The budget totals $36.4 million, including a general fund of $32.7 million along with debt service and special revenue. That’s about $1 million more than the current total budget of $35.4 million, including a general fund of $31.6 million.
A public hearing on the financial plan is scheduled for Monday. Residents go to the polls April 21 to vote on a tax levy of $26.4 million that would support the budget.
If approved, the budget will increase by about $450, or 5.5 percent, the annual school tax bill for a homeowner assessed at the township average of $408,600, according to Mr. Biesiada.
”We are trying to strike a balance between our educational needs and our taxpayers’ ability to pay,” said board President Thomas Foley. “The point is this is not a good time to be asking for more money. But that’s the situation we’re in, and most of it is not in our control.”
In fact, Mr. Foley said, the county superintendent of schools has requested Millstone raise the tax burden even more, from a $1.15 million tax levy to the cap of $1.5 million, in order to increase the district’s surplus.
The state Department of Education strongly recommends all districts have a minimum 2 percent surplus. Millstone’s budget falls short of that goal by almost $100,000.
Raising the tax levy to increase the surplus would add an extra 2 cents onto the school tax rate.
”We feel there’s already a hardship on multiple fronts,” Mr. Foley said. “To increase the tax levy to cap, we felt just wasn’t appropriate and it created conflict in the preparation of the budget.”
Roughly 80 percent of the proposed budget is allocated for salaries and benefits, including contractually obligated raises for nine administrators.
Another 10 to 15 percent is dedicated toward debt service payments that are slated to increase by 3.8 percent, and nearly $800,000 in tuition payments to Upper Freehold Regional for the students who attend Allentown High School.
Millstone educates students from kindergarten through eighth grade. High school-aged pupils are sent to Allentown High with tuition costs paid for by Millstone. Next year, the district expects 657 of its students will attend Allentown, Mr. Biesiada said.
Questions have been raised on why the district is paying Upper Freehold in full, when there is an option to spread the debt over three years without interest.
”It just doesn’t make sense to me,” said board member Kevin McGovern. “We have the option for an interest-free loan and we’re not taking it. I haven’t heard a good argument yet as to why we’re doing that.”
Mr. Foley argued it’s best to get the bill off the table, considering there’s no certainty about what the district can afford down the road.
The budget, however, can be amended before or during Monday’s public hearing, Mr. Biesiada said. ”This is not stamped in stone by any means,” he said.
Millstone voters rejected last year’s budget that would have raised the average tax bill by $69. The municipal government also rejected the budget.
If this year’s proposed budget is approved, nine staff positions will be terminated — two teachers, four instructional aides and three non-instructional aides – for a savings of $275,000 in salaries and benefits, according to Ms. Biesiada.
The district also plans to eliminate the pay-to-participate fee for students in extracurricular activities and sports, Mr. Foley said.
That fee was instituted in the 2007-2008 school year and generated about $50,000 a year, said Mr. Biesiada.
The late-bus fee of $50 per child at Allentown High School also will be removed, and Millstone teachers will no longer have to pay a transportation fee of $5 per child for school trips, he said.
”Don’t take this as a threat, because that’s not the intention, but if this budget doesn’t pass, we know where cuts will have to be made,” said Mr. Foley, referring to the transportation and participation fees.
Vic Monaco contributed to this story.

