3. How will the state budget deficit impact school aid and school funding in general for Fiscal Year 2010-2011?

1. The likelihood that school elections will be moved to November. There seems to be bi-partisan concensus to effect this change. GSCS has been consistent in its approach to this issue:

· GSCS is for eliminating school budget votes when budgets are at cap or below.
· GSCS is against moving school board member elections to November.
·GSCS is against moving votes to November for the portion of a school budget that exceeds cap, primarily on the basis that the timing of that vote-in the middle of a school fiscal year-is unworkable and contradicts sound budget practices.

Note that the recession and state budget deficit impact may mean that many more school budgets will exceed cap. For example, see COLA implications immediately below. 

2. The Cost of Living Adjustment (COLA) for municipal and county budget caps has been released by the Division of Local Government Services.

"The COLA is based on the Implicit Price Deflator for State and Local Governments, calculated by the U.S. Department of Commerce, Bureau of Economic Analysis.  The Price Deflator calculation for CY 2010 reflects, for the first time, a reduction of one percent (-1%).   Because the law does not provide authority for reductions, the COLA for CY 2010 is zero percent (0%)."

Go to:  www.nj.gov/dca/lgs/lfns/09lfns/2009-26.doc