State Aid Prompts BR-BOE to Increase Budget; Taxes Increase

Steve Beatty, teachers' union head, asks for clarification of teacher stipends.

When Dr. Michael Schilder, Superintendent of Schools, gave the final version of the Bridgewater-Raritan School Budget for the fiscal year 2011-2012 at last night’s Board meeting, his mood was much lighter and upbeat than the somber presentation of January 25, during which he put forth a tentative budget of $127.9 million.  That number projected that state aid would be lowered by $807,933.

Last night, reflecting Trenton’s announcement of a $1,331,546 increase in state aid, together with the addition of several other fund items outlined in a PowerPoint slide under “Budget Reconciliation,” Schilder and the Budget Committee came forward with a final proposal of $129.5 million. 

That’s an increase of $1.6 million, or 1.3% from the prior tentative budget of $127.9 million.  The Board approved the upwardly revised $129.5 million, and you can expect to vote on it in April. 

At yesterday’s meeting, a PowerPoint slide titled, “Budget Increase Comparison” shows the budget moving up by 0.7% instead of 1.3%.  That lower result is achieved by not including the impact of the $1.6 million.

Simply put, the $.8 million in state aid reduction assumed in the tentative budget was not held steady, but was added back to the final budget (the Administration calls it a “Leveling of Projected Aid”).   

Combine $.8 million to the $1.3 million in state aid, both of which were used to further hike the budget, and what you get is $1.6 million of added spending, not counting two other items totaling $109,169. 

The net result is $2,248,648 of further spending (the Administration and the Board call it “Additional Funds Realized”), all of which are incremental to the tentative budget presented on January 25^th.

The good news is that the final budget is below the 2% state-imposed cap on the tax levy. 

The bad news is that real estate taxes in Bridgewater and Raritan will still increase:  This is due in part because of an unplanned hike of $1.2 million in health benefits for school employees. 

Another reason, according to School Business Administrator/Board Secretary, Peter Starrs, is that the value of the municipal tax base has also declined -- a result of the continuing slide in housing values. 

Starrs further indicated that the Bridgewater-Raritan total tax bill (the “tax levy”) is rising from $118 million to $119.7M.  That’s a a bump-up of $1.7 million, or 1.5%.

I hope I haven’t bored you with these numbers, but their forward march is relentless, and our taxes are going up – again.

Thanks for reading, and treat yourselves well.