Friday, March 19, 2010

Bridgewater-Raritan School Board Ponders Budget Cuts

When the Bridgewater-Raritan Board of Education met last night, it was in shock over having to explain to its audience at the John F. Kennedy School ways to deal out an additional $4.4 million in reductions necessitated by the last round of state aid cuts.

At issue was whether to swallow the entire amount while keeping the tax levy at its current state-mandated 4% cap, or to implement one or more options presented by Superintendent Michael Schilder.

The options are no panacea, and it’s important for residents to understand what they are, how they work, and what their implications are upon the Bridgewater-Raritan real estate tax levy:

1. The Bridgewater-Raritan Board of Education can legally invoke an automatic waiver to offset state aid reductions. The cost would be built into the budget and would increase the tax levy beyond the present 4%. This requires no state or county approval and could be implemented next week by the B-R BOE to offset all or a portion of state aid cuts, if the board chose to. Voters would cast their yes or no vote for this in April. We’re talking potentially millions.

2. Place one or more spending proposals on the April 20th ballot to offset lost state aid. Such question(s) would be in addition to a base budget and would also increase the tax levy beyond the 4% state cap. However, in order for such a strategy to be a go, it needs approval from Somerset County Schools Superintendent, Trudy Doyle. We’re still talking potentially millions.

3. Employ a combination of the first two approaches.

4. Don’t alter the proposed budget. It already includes $8.8M in reductions. Lock in the school tax increase at 4%, the state cap. This means more expense reductions, a wage freeze or other cuts to cover the last round of state aid cuts.

The practical effect of implementing any of the first three options is clear: Bridgewater and Raritan residents would, in effect, be asked on April 20th to increase their own tax bills beyond 4% to pay for additional state-imposed cuts in aid.

Just before the public came to the mike last night, a straw poll of board members indicated that the 9-member body was equally split over how to proceed with these alternatives, with one board member expressing no opinion. A decision needs to be made next week.

Next Post: Simmering resentment over wage hikes.

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