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Current budget calls for $268 increase
(by Kathryn A. Burger - March 05, 2008)
It’s number-crunching time for the Park Ridge Board of Education. The budget was defeated last year, for the first time in more than a decade. The board has endeavored to make the process as transparent as possible this year help taxpayers understand where their money is going and why.
Cap Waivers
At a special meeting on March 3, Robert Wright, the district’s business administrator, reported that the county had approved the preliminary budget the district submitted last month. However, the district’s request for approximately $775,000 in cap waivers was not as successful. Districts cannot consider increasing the tax levy more than four percent over the previous year’s unless they are granted waivers.
As reported, waivers in five categories were requested: Capital Outlay, Special Education, Energy Costs, Insurance, and the Public Employee Retirement Fund. The county reduced the total amount the district can exceed last year’s levy to $384,000. Unscathed were Energy Costs and the Public Employee Retirement Fund, the latter a state-mandated expense. The county disallowed the entire $256,514 requested for Capital Improvements.
The waiver requested for Special Education was reduced by more than half to $123,914. Special Education costs are estimated at $3 million for the 2008-2009 school year.
Tax Impact
Based on the revised waivers, the tax levy now stands at $20,904,009, about 5.45 percent over last year. The total budget is $22,571,343, about 7.25 percent higher than last year.
The tax increase would be $268, based on the average assessed home value of $504,000. Wright said this average value is the most current the board has been given and could change.
Had all the waivers been approved and the district opted to use them, the increase would have been $325.
Timetable
As the board continues its work, it is mindful of the deadlines all school districts must meet. The budget is now being reviewed by the state, which must advise the district of its ruling by March 16. The district must “strike” or finalize the budget and submit it by March 29. The state requires that a public hearing be held prior to the approval of the budget and that the budget be published as a legal notice before the hearing.
Wright, the business administrator, explained what this timetable means to the district’s budget process.
“We may not hear from the state until March 16. To keep on schedule, we should publish the budget on March 14, 10 days before the hearing.” He said the budget has to be submitted for publication a few days prior to the insertion date, so a decision by the board on the budget needs to be made by early next week, whether or not the district has heard from the state.
In addition to changes that may result from the state, there may be changes made as a result of the March 24 public hearing. Those changes would have to be incorporated in the final budget that must be submitted by March 29.
Separate Proposal
The county did approve the district’s request to place a separate question on the ballot to fund, through taxation, items not included in the budget. Wright said, “They approved the concept, not the actual content. That has to be finalized and approved by the board and submitted to the county for final approval, should they decide to ask for additional funding.”
What’s next
The board and administration will meet again on Wednesday, March 5, at 8 p.m. when various budget scenarios are expected to be discussed. One will be based on the state approving the budget the county approved.
Another will be if the state disallows the waiver amount the county approved, in which case the board will have to trim approximately $400,000 from the budget. About 90 percent of the budget consists of fixed costs – salaries and benefits, among them. “Discretionary” items, including supplies and textbooks, make up the other 10 percent, about $500,000. Programs and/or staff cuts may be the only option the board has to bring the budget under cap.
Wright said another meeting has been tentatively scheduled for Thursday, March 6 in the event that the board cannot finalize both the budget and the separate question at the Wednesday meeting.
The next regular meeting of the board will be held on Monday, March 10. It is anticipated that the budget will be reviewed, and a vote taken to approve it for publication later in the week.
Kathryn A. Burger's e-mail address is burger@northjersey.com.
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