The school district has received the goahead to ask voters to approve a 9.88 percent tax levy increase in support of the 2010-11 budget.
The Upper Freehold Regional School District submitted a proposed $34.3 million operating budget to the Monmouth County superintendent of schools on Feb. 24 in an effort to obtain two tax levy waivers that would allow it to go over the 4 percent cap set by the state. The district received a letter last week stating that it has permission to use a $514,677 waiver for opening a new school and a $508,005 waiver to cover a 25 percent increase in health benefit costs.
“That’s huge for us,” Superintendent of Schools Dick Fitzpatrick said. “That means we can go forward now and ask the people.”
If voters approve the proposed tax levy increase in the April 20 election, an Upper Freehold resident with a house assessed at $492,900 would pay an average tax increase of $851. An Allentown resident with a house assessed at $153,400 would pay an average increase of $391.
If voters turn down the proposed tax levy increase, the budget would go to Upper Freehold and Allentown officials for review and the school district would likely be forced to make cuts in addition to those it has already made for the upcoming school year. As a result of increased fixed costs and decreased state aid, the district had to cut over $2.2 million worth of services to achieve a tax levy increase proposal of less than 10 percent.
If, for example, Upper Freehold and Allentown officials agree on reducing the tax levy increase to 9 percent, $153,247 more would have to be cut from the budget. To achieve a 6 percent levy, $674,908 would have to be cut. Over $1 million would have to be cut to reach 4 percent and nearly $1.2 million would have to be cut to reach 3 percent. If the municipalities cannot come to an agreement over the budget, the executive county superintendent would determine the tax rate increase, if any.
“To cut in the magnitude of millions, it has to be salaries,” Fitzpatrick said.
He noted that the district would open its new middle school this year. Although the district planned to budget for an additional six teachers, two paraprofessionals and an assistant principal to staff the school, it could not do so in order to save $773,334 to put toward fixed costs, according to Fitzpatrick.
“We’ve cut everyone from the new middle school except for the custodians,” Fitzpatrick said.
Fitzpatrick said increases to contracted health benefit, contracted salary, energy, and out-of-district placement costs alone represent a $3.9 million increase over the 2009- 10 budget.
“We are as vigorous as we can be, but some of these [costs] are way out of our control.”
The school district had the lowest perpupil spending all K-12 districts in its district factor group (DFG) and the fourth lowest per pupil spending among all K- 12 districts with similar budgets in its DFG in 2009-10, according to Fitzpatrick.
School districts will not know their exact reduction in state aid until Gov. Chris Christie gives his budget address on March 16. The Upper Freehold Regional School District’s proposed spending plan relies on a 10 percent reduction, but state officials have told districts to be prepared for a 15 percent reduction.
If the latter comes to be, the district would have to cut another $272,000 from its proposed budget prior to the public hearing scheduled for March 31.
The district will be able to make changes to its proposed school budget up until the public hearing. After public comment, the Board of Education will vote on whether to adopt the proposed spending plan.
The board did not receive any public comment regarding Fitzpatrick’s budget presentation at the last board meeting. The next Board of Education meeting has been rescheduled from March 17 to March 24.