L ocal elected officials told members of the public attending a public forum hosted by the Middletown Township School District that school districts are being asked to make tough but necessary choices given the state’s fiscal crisis.
Middletown Superintendent of Schools Karen Bilbao describes the proposed budget cuts that may occur in the public school district during a community forum held at Middletown High School North on March 4. ERIC SUCAR staff The public budget forum was held at Middletown High School North on March 4 and attracted hundreds of community members.
Assemblywoman Amy Handlin (R-13th District) explained that the district’s choices are not easy, but that they are essential in order to move forward.
“New Jersey can go bankrupt, and that’s no joke,” Handlin said. “California is literally printing money. They are giving their districts IOUs because they’ve run out of cash. We could go that route, and that would be the end of public life as we know it on the town level and on the school level.
Sen. Joseph M. Kyrillos and Middletown Superintendent Karen Bilbao answer questions. “I don’t think anyone here would think that would be a better option. Step one is to face the facts, step two is to recognize the tools we do have and can develop and work as cooperatively as we can.”
Handlin spoke during the panel, which included 13th District legislators Assemblyman Samuel Thompson and Sen. Joseph Kyrillos as well as Monmouth County Executive Superintendent Carole Morris and school district administrators.
Faced with an anticipated 10 percent cut in state aid, the Middletown Township School District — the largest in Monmouth County — is proposing budget cuts of $4.5 million for the 2010-11 academic year to include personnel cuts and staff layoffs.
Hundreds of residents in attendance listen to the guest panel answer questions on the budget cuts proposed in the Middletown Township Public School District during the community forum. “The reductions in personnel were the most critical decisions that had to be made,” said Superintendent Karen Bilbao. “There is no way to get to the extent of the reduction we needed without reducing staff.”
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 their surplus funds to offset withheld state aid. The governor has announced a plan to cut $475 million in state aid to school districts, part of a plan to deal with the state’s multibilliondollar budget gap.
Assemblyman Samuel Thompson explains that budget cuts have been made necessary by the state’s fiscal crisis. PHOTOS BY ERIC SUCAR staff “Consequently, he had very few choices about what to do,” Thompson said during his address to the public. “There is no more money in Trenton. It’s just not there. The suggestion to utilize surplus money seemed like one of the best courses he could take.”
School districts are allowed to have a surplus account, with any amount above 2 percent considered excess surplus and earmarked for taxpayer relief. By Christie’s direction, the district must use the excess surplus toward the 2009-10 budget.
Districts also have funds in reserve accounts, called reserve surplus, targeted for expenditures like facility upgrades. The Middletown district was required to cut reserve funds by 25 percent in each of three categories: capital reserves, emergency reserves and unreserved funds.
The district is expecting cuts to total $2.8 million, which will impact the 2009-10 budget.
The governor’s budget message will be delivered March 16, and state aid to school districts will be announced on March 18.
Pending the announcement, district officials said they are anticipating $2.3 million in state aid cuts and are planning to substitute surplus funds to offset the aid cuts and reduced funding for the 2010-11 budget.
Approximately 16 percent of the district’s $144.4 million budget comes to the district through state aid, according to Business Administrator Bill Doering. The district received $457,225 in state aid for 2009-10.
Thompson explained to the audience that Christie’s plan was aimed at reducing excess surplus above 2 percent and 25 percent of reserve funds.
“He [Christie] was not taking all of the reserves from districts,” he said. “Consequently, it did not touch monies committed to any budgeted programs to classes. This was strictly done from the reserves.”
Bilbao presented a side show about the methodology the district took in terms of spending reductions assuming a 10 percent cut in state aid for the 2010-11 budget.
The district would cut 36 teaching positions of 920 teachers total, achieving a savings of $2,340,000. Of the 36 teachers, 18 would be eliminated from the elementary schools, nine from the middle schools and nine from the high schools, she said.
Two of 48 administrators would also be cut, achieving a savings of $210,000.
Of 303 paraprofessionals, 18 positions would be reduced, saving $340,000. The reductions would only be made from nonmandated programs, Bilbao said. Preschool and kindergarten programs are mandated by the state and will remain untouched.
Four secretaries and four facility staff members would be cut, creating a combined savings of more than $300,000.
Other areas such as teaching staff stipends, extended detention at high schools, decreased substitute rates and the reallocation of summer salaries to federal grants will result in approximately $383,000 in savings.
Various departments including building, technology, athletics and capital projects would see a reduction of $700,000 total.
Other strategies Bilbao said are being considered to offset the aid reductions are increased class sizes; redistricting of students; elimination of subvarsity athletic programs; and charging a flat fee for athletic/co-curricular activities.
Residents in the audience were encouraged to submit questions on index cards to the forum panel. Marie Curtis, a representative of the League of Women Voters, moderated the question-and-answer portion of the meeting.
The theme of many of the questions focused primarily on teachers and health care costs. Based on the data from the presentation, residents cited concerns that the district should cut more administrative positions, not teachers.
However, Bilbao explained that the district has one administrator for every 206 students within the 17-school district.
“We need administrators to supervise instruction and to support the staff we have,” she said. “We also need administrators to support parents and students in our schools.”
Other questions revolved around employee health care benefits. In her address, Laura Agin, Middletown Board of Education president, said the district has achieved cost savings by increasing health care co-pays and eliminating traditional insurance plans for district employees, negotiating caps for accrued sick and vacation time.
According to the district, approximately $22,452,353 was budgeted for 2009-10 for employee benefits.
During the panel discussion, Bilbao said, “Employees already contribute to health care costs.”