LAWRENCE: State proposal could cut aid

By Lea Kahn, Staff Writer
School district officials are scrambling to figure out how to deal with a proposal from the state that would allow the school district to defer its annual contribution to the Public Employee Retirement System this year — but that would also result in a permanent decrease in state aid.
    The bombshell was dropped on the school district March 31 — the day before the Lawrence Township Board of Education held a public hearing on its proposed $65.3 million budget for 2009-10.
    The district was told it could defer half of its annual $500,000 pension contribution until 2012, and then pay it back — with an unknown amount of interest — for the next 15 years, school district Business Administrator Thomas Eldridge told the school board at its April 1 meeting.
    “The state says, ‘Since we relieved you of the obligation (to contribute to PERS), we won’t pay you state aid (in the same amount of $246,000).’ The state said it would never restore that state aid,” Mr. Eldridge said.
    Mr. Eldridge said the impact would be immediate, because the district had expected to receive $246,000 in state aid payments for April, May and June.
    “The problem we face is, if we don’t receive the funds in the amount we expect in the (2008-09) budget, we will be short $246,000 in revenue,” he said. “We will have to go to surplus or cut it from some other place and decide not to spend money (between now and the end of the school year).”
    School board member Michael Brindle was angry and suggested that school district officials “lock the door and put the key under the mat.” He also suggested suing Gov. Jon Corzine and state Commissioner of Education Lucille Davy.
    “The governor said there would be no cut in state aid and we were cut immediately. This is another lie from the politicians,” Mr. Brindle said, adding that he meant members of both political parties.
    School board member Bill Michaelson said the issue is “in our laps” and it would be discussed by the school board’s Finance Committee, which is expected to report back to the full school board at its April 15 meeting.
    But Superintendent of Schools Philip Meara reassured the school board that school would be open and the district would be able to serve the students, regardless of the looming loss of some state aid.