The Red Bank Borough Public School District would begin the 2010-11 school year with a $700K deficit if Gov. Chris Christie goes through with a plan to cut $1.6 billion in state aid to school districts across New Jersey.
According to Superintendent of Schools Laura C. Morana, the lost funding would force the district to use the surplus from the 2008-09 $15 million budget.
“Our $701,865 surplus means we were very efficient with our budget. That money is used all the time to offset the following school year’s budget,” Morana explained during a monthly meeting with the press on Feb.18.
The district is also dealing with the potential 5 to 15 percent reduction in state aid, which Christie must announce by March 16.
“The impact for our tiny district would be significant. We’d have to eliminate programs, sports, field trips and technology. Layoffs of support staff like counselor and coaching positions are a reality in the worstcase scenario,” said Morana.
According to Morana, cuts would hinder the learning experience for students in the district.
“We want what’s in the best interest for our kids. It’s all a part of the system we’ve created for our students. They’re making such great strides here, and all of that is in jeopardy right now.
“We’ve established a school system that enhances learning, and I see this possibly being dismantled if we had to cut some of our support services,” Morana said. “We’re just looking to maintain what we have.”
School officials are in the midst of crafting the 2011 budget, which must be submitted in early March, prior to the governor’s announcement.
“We have to craft a budget based on not knowing much at all,” Morana said. “Our only basis is to expect a significant reduction.”
Morana said she has already decided to eliminate two positions that she couldn’t justify, moving forward, and that she’s looking for answers in the days to come.
“Right now we’re dealing with nothing but a million questions,” she said. “We have several drafts based on the various different outcomes. Pre-K funding is still unknown.”
The district’s enrollment is significantly increasing by 10 percent from the 2009-10 of 1,000 students to 1,100 students in the 2010-11 school year.
By signing an executive order earlier this month, Christie’s plan immediately froze spending on programs to close a $2.2 billion state budget gap.
Christie’s plan forces school districts to use their excess budget surpluses in place of state aid payments, an effort that would save the state $475 million of what Christie refers to as “excess surplus,” Morana explained.
School districts that have surpluses greater than 2 percent would lose their additional surplus funds.
According to Morana, the governor feels that surplus funding is basically found money and that therefore there is zero impact at the tax and school levels, a theory she vehemently disagrees with.
“That’s just wrong. It will impact our students and it will hurt our taxpayers,” Morana said. “It might not be felt this year, but it would be significant next year for everyone.”
According to a Feb. 11 press release from the Governor’s Office, “Aid to local school districts and higher education institutions is being reduced, requiring them to use surpluses to fund operations for the balance of the school year. The school aid reductions do not impact any approved school budget funding.
“Other hard choices include eliminating programs across virtually all departments, including some very good but non-essential programs that simply cannot be afforded at this critical time in New Jersey’s history.”
“The inequity is apparent. The district’s surplus comes as a result of the grants we secured. It’s as if we’re being penalized for being responsible,” Morana added.
Any surplus used immediately won’t be available to offset property taxes for the next school year.
Last year, the Red Bank school district was the only district in the area that had a flat tax rate. This year, that would not be possible, Morana said.
“Districts with the largest surpluses, effectively those that are run most efficiently, will experience the largest losses of aid, while districts with essentially no surplus won’t be affected,” said Morana.
Morana said she has good reason to believe most people don’t fully understand the impact of the cuts. She added that the cuts would have no impact at the Red Bank Charter School, because her district would continue to be required to pay $1.8 million of the slightly over $2 million received in state aid.