All of the collective bargaining groups in the Upper Freehold Regional School District voted to delay their contracted salary increases, resulting in a $434,567 savings in the 2010-11 budget.
Superintendent of Schools Dick Fitzpatrick said the funding that would have been used for the pay increases will be used to offset the $800,000 increase in health benefits that the state plan imposed this year. The agreement with the bargaining groups will also help the district maintain appropriate staffing and class sizes despite the $813,180 reduction in state aid this year, Fitzpatrick said.
“I think it’s a landmark decision that reflects real concerns about class sizes, the staffing needs of kids, and keeping programs available for kids,” Fitzpatrick said. “This is a demonstration on the part of all workers — teachers, assistants, secretaries, custodians, safety and security people, maintenance people, bus drivers, superintendents and assistant superintendents. This is everyone saying we understand what the times are like and we are looking for a way to reduce the impact on kids.”
On Feb. 18, the New Jersey commissioner of education advised all school districts to anticipate a 15 percent decrease in state aid revenue in preparing their budgets. Gov. Chris Christie has also directed that all school districts use all of their surplus funds to replace withheld state aid.
The school district must apply its $896,228 surplus, which was set aside for the opening of the new middle school, to this year’s budget to offset the loss in state aid.
“What people don’t understand is that what they are losing is tax relief, not money that is just sitting there, but money to offset taxes,” Fitzpatrick said, adding that districts will not have any surplus left next year when the state is expected to reduce state aid again by at least 15 percent.
The school district still does not know if the state will mandate a 3 percent or 4 percent cap on the amount it can raise taxes in support of its 2010-11 budget. The budget has to conform to the tax cap law unless the Monmouth County superintendent of schools gives the district a waiver for extraordinary circumstances, such as opening the new school.
“If we are not able to get the support of the county as we open our new middle school, we will continue to have to look at staff at all levels, not only teachers but support staff at all levels, to come up with the difference,” Fitzpatrick said.
If the district has to abide by a 4 percent cap, it would have to cut an additional $1,022,682 from the budget. If the district has to abide by a 3 percent cap, it would have to cut an additional $1,196,569 from the budget. The district would contemplate having students pay bus fees, selling the Imlaystown facility that was appraised at $300,000 prior to the decline in the real estate market, privatizing technology services and transportation, having students pay to participate in sports and extra-curricular activities, and moving custodial equipment back and forth between two campuses.
However, the school district will apply this week for a waiver to increase the tax levy for school-related purposes by 9.88 percent. Any waiver has to be approved by the county superintendent and then by voters in the April 20 election. If the school district gets the waiver, voters in Allentown and Upper Freehold will be asked to support a $22.5 million tax levy for a $34.3 million budget. The school district has tentatively projected the tax impact, as final assessment values in both towns have not yet been determined. The average homeowner in Allentown with a house assessed at $153,400 could see taxes increase $391.16. The average Upper Freehold homeowner with a house assessed at $492,900 could see taxes increase $850.92.
To produce a budget that relies on a 9.88 percent tax levy increase, the school district has already had to cut $2.4 million worth of services and programs. Staffing, supervision and curriculum development costs were cut $588,934. Special education service costs were reduced by $88,894.
Student activity funds were cut by $121,003. Athletic programs at the middle and high schools were cut by $85,500. Support service costs were reduced by $239,801. Custodial and maintenance service costs were reduced by $269,826. Instructional and support service costs were slashed by $356,042, among other reductions.
Fitzpatrick said the district cannot cut funding for state mandates. For example, the schools must provide a specific amount of physical education, must start teaching students a different language in kindergarten, and must provide a seat on a school bus for every student in the district whether they ride the bus, walk or drive to school.
“We can’t do all this with good intentions, we need to have resources,” Fitzpatrick said.
Fitzpatrick also took issue with the state raising the cost of health benefits $800,000 (25 percent) while imposing a $662,000 or less tax cap on the school district.
The budget will continue to be refined until the public hearing at 7 p.m. March 31 in the high school auditorium.
The board’s next meeting will take place at 7 p.m. Feb. 24.