South Brunswick Board of Education Adopts School Budget, Cuts Spending; Voters Get Their Say April 27

The South Brunswick Board of Education adopted the 2011-12 school budget at last night's meeting, which maintains the tax levy at its current level for the third consecutive year and cuts spending by about $2.9 million.  Taxpayers will vote on a $95 million general fund levy that carries a 12.2 cent tax rate increase, which raises the proposed school tax rate to $2.802 per $100 of assessed valuation.  South Brunswick is one of only two school districts that hasn't raised the tax levy over the past three years.

"This year represented a perfect storm with a decrease in ratables and increases in enrollment and fixed costs," said Board of Education President Matthew Speesler.  "This budget is a fair budget that will continue to provide the educational opportunities that we have enjoyed for so many years."

A township home with an assessed value of $200,000 would see an increase of about $244 in school taxes under the proposed budget ($20.33 per month) and a home assessed at $300,000 would see an increase of about $366 ($30 per month).

The proposed budget includes the elimination of 34.1 full time equivalent employees from across the district.  The layoffs include five employees from administration, 12.6 from the teaching staff, two employees from educational services, 10 paraprofessionals, 2.5 secretaries, and two maintenance employees.

"I never thought I'd see the day when I would sit here as a board member and have to contemplate laying off any employee," said Harry Delgado.  "This was a very difficult decision and there is no easy way to arrive at this decision."

The layoffs represent the third consecutive year of double digit staffing reductions.  The 2009-10 budget cut 25.3 full-time equivalent employees and last year eliminated 111.9 full-time equivalent employees.  Class size teacher-student ratios for grades K-1 would be 1:23, for grades 2-5 would be 1:25 and for grades 6-12 would be 1:28.

The budget committee had two levels of spending cuts prepared for the budget.  As part of the Level II cuts, the staff reduction could've included 63.6 full time equivalent employees to be cut, but that number was reduced after district officials learned that $836,858 in federal funding from the JOBS Bill would not be subtracted from state aid.  The highest percentage of staff reductions in terms of full time equivalent employees in the proposed cuts would come from administration as part of the proposed budget.

Earlier this month, the South Brunswick Board of Education asked the district's eight bargaining units to accept a wage freeze that board members said could have reduced the number of positions that needed to be cut as part of the budget.  It was projected that had all eight units agreed to the freeze, it could have saved about $2.4 million.  The unions for teachers, secretaries, paraprofessionals, custodians, and bus drivers voted to reject a wage freeze.

 The district's Central Office Administrators, which includes Superintendent Gary McCartney, had agreed to a wage freeze earlier this month that is projected to save $45,208.  The head custodians union also agreed to a wage freeze that is projected to save $29,329.  

The unions for the district's administrators (which includes principals and assistant principals) and supervisors agreed to a half-year wage freeze, which would keep their salaries at the current level from July 1 through Jan. 1, 2012.

The partial year freeze is projected to save about $64,000 according to district officials.  The units that did not accept a freeze or accepted a partial freeze amounted to about $2.2 million in funding that could've been saved.

"We're sad to lose 34.1 full-time equivalent employees but we're happy to have a positive collaboration with the district's bargaining units," Dr. Speesler said.

During the public hearing last night, a resident criticized the teachers union for rejecting the wage freeze, saying the union "didn't want to share in the pain."

South Brunswick Education Association President Chris Hines said during contract negotiations last year the teachers union conceded most of what was included in their initial proposal and the teachers did give back at the negotiations table. 

"I don't know that you can compare teaching jobs with private sector jobs," Hines said during the meeting.  "But you can compare the jobs of teachers in other districts."

Hines said the median salary for a teacher in South Brunswick is lower than the county and state average and that the average class size in South Brunswick is higher than the state average, while the per pupil expenditure is lower. 

The New Jersey state average cost per student is $13,860, while South Brunswick's is $12,054.

"The decreased ratable base is to blame for the economic situation not the salaries of teachers," Hines said.  "No teacher or other employee of this district should have to justify their salary in a setting such as this.  In every measurable way South Brunswick's schools achieve at a higher rate and give a better product than what you see in surrounding districts at less of a cost."

Board member Dan Boyle said the decision to cut staffing was a difficult business decision that had to be segregated from personal feelings.  He also said blame should not fall on district employees and unions for economic difficulties.

"A lot of people want to place blame on the teachers and unions but it's not their fault," he said.  "Teachers didn't steal from the pension fund, politicians did."

At last week's budget committee meeting, South Brunswick Township Chief Financial Officer Joe Monzo laid out the financial challenges facing the district due to a 4.3 percent drop in the township's total assessed value to approximately $3.7 billion.  Monzo said that drop in and of itself would cause an increase in taxes, even if the school budget remained the same as last year.  He added that for the first time in 20 years, South Brunswick's total assessed value dropped for two consecutive years.  Monzo said a drop in property values and commercial/industrial values also contribute to the ongoing difficulties for the township and district.

"The economy is not just a local issue, it's a national issue," said board Vice President Stephen Parker.  "Because of the economy we have to deal with a decline in the ratable base.  Education is funded on the backs of our property taxes and this has a direct impact on our schools."

The district lost about $9 million in funding due to successful tax appeals last year. With the decrease in ratables, the district had to increase the tax rate by 4.5 percent just to get back to the same tax levy as last year.  The district also faces a projected increase to health benefits (includes health, dental and prescription) of $1.8 million or about 10.5 percent and a pension cost increase of about $89,000 or 4.8 percent, according to Business Administrator Anthony Tonzini.

"We all feel the pain of the economy," said board member Barry Nathanson.  "When the budget increases our taxes increase.  The biggest affect is from the ratables and that goes into what's happening with the economy.  People are winning tax appeals in record numbers."

The district will receive about $20.1 million in state aid this year, an increase of $1.26 million, but still short of the $6.3 million in aid that was cut last year.  The district is also expected to lose about $1.6 million from state aid for approximately 150 students from South Brunswick that the state projects to attend charter schools.  The funding lost to charter schools represents a 221 percent increase over last year.

The budget focused on several key core areas of importance that included preserving a comprehensive educational program; a continuation of best practices that contribute to positive results, including enrichment and student activities; a protection of investments for facilities and properties; and planning for the future with efficiencies, savings and cost containments.

The district saved about $12.1 million with measures that included refinancing a 1997 bond issue, grants and an energy audit program.  The district reduced transportation costs by $100,000, employed a different approach to purchasing supplies to save about $200,000 and is exploring opportunities to generate revenue through selling advertising.  

The proposed budget includes pay to participate fees for athletics and music, clubs, Advanced Placement courses and high school parking.  Each club would have a $25 participation fee, seniors at South Brunswick High School who wish to park their car in the parking lot would have to pay a $25 fee for the year, and Advanced Placement courses would also carry a $75 fee.

The board announced that students on free or reduced lunch would be exempt from any pay to participate fees.  The South Brunswick PAL also has a $5,000 scholarship in place to assist students who don't qualify for free and reduced lunch, but still can't pay the fee for participation in athletics or music.

Board members said the budget process was both fair and open to the public, while also including "outside the box" thinking, such as the six-member Citizens Budget Advisory Committee.  

School elections will be held on Wednesday, April 27 with polls open from 7 a.m. to 9 p.m.  Voters will cast their ballots to decide on the $95 million general fund levy and on six candidates seeking three open three-year seats on the Board of Education. Incumbents Speesler and Arthur Robinson will be challenged by Edward Birch, of Kendall Park; Patrick Del Piano, of Monmouth Junction; Raymond A. Kuehner Jr., of Dayton; and Deven M. Patel, of Dayton.

By state law, if the budget is defeated it would go before the South Brunswick Township Council who would make recommendations for further cuts.

"I can't stress the importance of voting enough," Kuehner said during the meeting.  "We can simply not afford any deeper cuts than what we're experiencing already.  We must pass the budget in the best interest of our future, our students."

Click here to download voter registration forms.  The deadline to register to vote is April 6.  

Click on the image above to view the Board of Education Budget Presentation from last night's public hearing.

South Brunswick School District Proposed Budget Reductions 2011-12: