ALLENTOWN — A recession, a state aid reduction and a new school add up to the perfect storm for the school district’s budgeting process this year.
Superintendent of Schools Dick Fitzpatrick has reported that the Upper Freehold Regional School District will likely have to cut between $1.3 million and $2.3 million in costs this budget season. He and Business Administrator Diana Schiraldi started talking about the budgeting process with the Board of Education on Jan. 13.
“We are absolutely in a situation where we have to find a balance between resources and needs,” Fitzpatrick said. “As conservative as we thought that we have been, thinking about the worst possible scenario, it’s worse than we thought.”
Fitzpatrick said the school district’s mission is to inspire all students to excellence.
“Cuts so dramatic will affect all aspects learning — student-to-teacher ratios, class sizes and all services we provide,” Fitzpatrick said.
Schiraldi said administrators have been trying to project potential costs based on information that is constantly changing. The school district will not know how much state aid the budget will be able to rely on until March 18.
“The county office recommended that we take 10 percent off what we received last year,” Schiraldi said.
The Upper Freehold Regional School District officials are currently anticipating that the state will again allow a maximum 4 percent tax levy increase for school-related purposes. However, the Millstone School District and others have heard rumors that the state may cut the cap down to 3 percent and are drafting their spending plans with that in mind.
Although the school district does not have all of the information necessary to finalize a spending plan or determine the budget’s tax impact, it has started the budgeting process and anticipates $3.2 million in new costs for the 2010-11 school year.
The new costs include an estimated increase in salaries of $951,376 and in health benefit costs of $1.1 million. Custodians for the new middle school will cost $243,314. Energy costs will also increase as a result of opening the new school and have been projected to rise $357,871. The borough of Allentown is expected to bill the district $42,341 more for sewer service in 2010-11. Out-of-district placements will cost $357,565 more than last year. Other anticipated increases for supplies, textbooks, and other items, are expected to total $97,639.