Simmering Resentment over Wage Hikes

The chorus of demands for the Bridgewater-Raritan Schools administration (including principals and supervisors) to set the example by enacting a voluntary wage freeze on their own compensation has been growing louder as the days go by. That strong sentiment was made abundantly clear at last Thursday’s meeting at the JFK School in Raritan Borough, when many motivated speakers challenged the administration on that topic.

The audience consisted largely of parents with school-age children, as well as a very large contingent of bargaining unit staff personnel who made their presence known. But there were also several residents without kids in the school system. It took a lot of guts to get up to that mike and declare that this is the time for a wage freeze.

The idea that this community needs to push back on wage hikes that it can no longer afford is not new. Nor is it simply my own. A year ago, on March 11, 2009, I wrote a blog post highlighting an example from the administrator of another school district. Below is an excerpt:

So there you have it.

“In a front-page Courier News article today, Hillsboro Schools Superintendent Edward Forsthoffer III indicated that he would forsake his salary increase for the 2009-2010 school year. Finally! Someone at the top of the administrative chain has decided to do what has been evident to just about every responsible New Jersey taxpaying citizen: Hold the line on salary.

With respect to the Bridgewater-Raritan School District, I’ve had it in mind to write that the administration, beginning with Superintendent of Schools, Dr. J. Michael Schilder and School Business Administrator/Board Secretary, Peter Starrs, should be among the first to give up their pay raises. Their example should be followed by all other leading educators in the Bridgewater-Raritan School District.

I never thought that a superintendent from another nearby school district would be the first to do it. The example has been set, but it’s only a beginning

Getting the three Bridgewater-Raritan schools bargaining units to see the economic light is like trying to start a camp fire in the rain.

The largest of these groups, the Bridgewater-Raritan Education Association has been meeting in the last 24 hours with its membership to consider the issue. At Thursday’s meeting, Board member Evan Lerner, who is on the Negotiations Team, publicly asked to meet with representatives of the BREA.

That meeting should happen on Monday, one day before the full board of education is scheduled to meet to refine its budgeting strategy. The other two members of the Negotiations Team are Board President Jeffrey Brookner and Board Member Lynne Hurley.

Meanwhile, the other two significant bargaining units – the first representing school principals and the other representing school supervisors – are hanging tough. Board President Jeffrey Brookner told Thursday evening’s public assembly that these groups have not yet given up a dime of their scheduled pay increases – nada, rien, niente. Thanks for checking in. Stay engaged

Sunday evening, March 21st revisions: This post has been revised to correct the fact that the Bridgewater-Raritan Negotiations Team consists of board members Jeffrey Brookner, Evan Lerner and Lynne Hurley. Board policy gives the board president flexibility in appointments. Cindy Cullen, Jill Gladstone and Arvind Mathur were previously identified as being on the Negotiations Committee. This confusion arose due to an incorrect posting and titling of committee assignments found on the official Bridgewater-Raritan web site.

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.

B-R Schools to Incur Additional $4.4 Million Budget Hit

Today, Governor Christie’s administration announced the last round of cuts in state aid to New Jersey school districts for the 2010/2011 school year beginning July 1st, 2010. Consequently, the Bridgewater-Raritan School District was notified that it will incur another reduction in state aid of $4.4 million, on top of previous cuts.

Tonight, 8:00 PM, at the John F. Kennedy School in Raritan the B-R BOE and administration will present another pared-down version of the budget. None of the previous presentations to the public – the latest of which was on February 23rd – provide room for a reduction as steep as those necessitated by the State of New Jersey’s cuts announced today.

I expect a very large turnout of Bridgewater-Raritan residents and a big group of staff and union representation. The February 23rd meeting was standing-room only.

Jeffrey Brookner, President of the B-R BOE had sent letters previously asking all bargaining units, including those representing teachers, principals and supervisors to re-open contract negotiations. The purpose was to reduce or rescind the 4.35% pay raises included in the proposed 2010/2011 school budget now under stress. Total wage increases are reported to be worth $2.7 million.

To date, no information has been made public about the responses of those bargaining units to Mr. Brookner’s request. The only concessions made so far have been from a small group of non-bargaining administration officials to reduce their pay raises by 2%, or about $60,000 in total.

As of this writing, the impact on Bridgewater and Raritan real estate tax levies is uncertain. However, at the time of the latest budget draft on the 23rd, the combined tax levy for both municipalities was still going up by 4%, the maximum allowed by New Jersey law.

Freeze Bridgewater-Raritan School District Salaries

On Tuesday, December 18, 2007, the Bridgewater-Raritan Board of Education approved a multi-million dollar wage hike which translated into a 12.8% salary increase spread out over three years. Beginning this summer, the last part of that increase – 4.35% – is scheduled to be paid to district employees for the 2010-2011 school year.

The B-R BOE needs to reopen all of its contracts with representatives of school employee bargaining units. Everybody knows that times have changed drastically. The old normal no longer exists. Bargaining units need to agree with the Board of Education that the third-year pay hike is no longer viable. (It wasn’t when originally negotiated in 2007.) It should be rescinded, and contributions to health benefits need to be put on the table.

We finally have a governor who has recognized what all New Jersey citizens have known for years: we have overspent and mortgaged the futures of our children. Consequently, Governor Christie has declared a state of fiscal emergency to plug a $2.2 billion hole in the state budget.

Unfortunately for all of us in the communities of Bridgewater and Raritan, he has also decided to withhold $4.02 million in state funding originally allocated to this district under the Corzine administration. Nobody likes this. I do not. Nonetheless, I’ve seen these problems rising on the horizon for years. To illustrate: The pension fund for school employees is severely underfunded, threatening its ability to pay out future benefits. We’ve been warned about this problem for a long time.

A salary freeze in the Bridgewater-Raritan School District should be established from the top on down – beginning with the Superindent of Schools, then all administrators, followed by teachers, building and grounds personnel, and everyone else. Inflation has been running well below that wage hike of nearly 13%. It has even dipped into negative territory. Bridgewater and Raritan just can’t afford this level of wage increases anymore.

If the sacrifice is not evenly distributed, expect that this Board of Education and its Administration may be forced to enact cuts that could highlight weaker bargaining units or members of the Bridgewater-Raritan employee population for elimination. And that’s not equitable.

Tomorrow night, at 8:00 pm in the Wade Building in Martinsville, there will be a presentation of the second draft of the budget.