Chathams School District administrators, principals, assistant principals and supervisors announced this week they are settling on a 2 percent raise -- compared with the up to 6 percent raise guaranteed in their contracts -- for the 2009-10 school year..."

Morris County school administrators are latest officials to give up pay in tough economy

by Leslie Kwoh/The Star-Ledger

Tuesday December 16, 2008, 6:31 PM

In an unprecedented move to help their school district weather the economic downturn, 27 Morris County administrators have volunteered to accept cuts in their annual pay raises for the coming school year.

Chathams School District administrators, principals, assistant principals and supervisors announced this week they are settling on a 2 percent raise -- compared with the up to 6 percent raise guaranteed in their contracts -- for the 2009-10 school year. The move could help the six-school K-12th grade school district save $70,000 in its toughest budgetary year yet, officials estimate.

"We've had people in the community lose investments and jobs," said Superintendent Jim O'Neill of the affluent township and borough, which together funds more than 90 percent of the district's budget. "It's very obvious we're not in the same place we were a year ago."

O'Neill, who has a salary of $205,000, said he received a nearly $7,900 raise last year and is foregoing half of a $8,200 raise this year.

While many districts across the state have toyed with the idea of reopening contracts, the Chathams are the first to make such a move, according to the New Jersey School Boards Association. But others might soon follow suit, especially as many anticipate the economy could impact state aid grants for next year, said association spokesman Frank Belluscio.

"I think you're going to see school districts looking very closely at it," Belluscio said. "There's a real concern out there."

Municipal employees across New Jersey are also making similar concessions. In Montclair, township manager Joseph Hartnett, whose salary is $153,292, announced this week he will forego his annual pay raise. Last week, Essex County executive Joseph DiVincenzo Jr. said he and his staff will forego raises for two years, and this week, Orange Mayor Eldridge Hawkins Jr. said he will relinquish the salary from his second job as the community's fire director.

Meanwhile, in Dover, township officials were expected to vote Monday on 60 percent to 70 percent pay raises for the mayor and board of aldermen. Following opposition from residents and some town officials, however, Mayor James Dodd proposed a 3 percent raise instead.

In the Chathams, the 27 participating administrators include five central office positions: superintendent, assistant superintendent, business administrator, personnel director, special services director. They also include 22 principals, assistant principals and supervisors who -- as members of the Association of Chatham Principals and Supervisors -- had a contract through 2010 guaranteeing raises of between 2 percent and 6 percent.

"There were a lot of job layoffs in the community. We thought if there was something we could do to show the community we're sensitive to that, we should," said association head Ralph Pesapane, who makes about $150,000 annually as principal at the Southern Boulevard School.

Even with the forfeited pay raises, other cost-cutting measures in the district will be "inevitable," O'Neill said. The school district, which has an annual budget of $55 million, received $1.2 million in waivers from the state last year to help cover special education, increases in student population and pension plans, he said.

But with no guarantees for next year, officials are exploring options such as larger class sizes, a hiring freeze and possible position cuts. Areas like athletics and extracurriculars are being heavily scrutinized, he said.

Meanwhile, the 3,740-student district continues to grow by between 125 and 145 students a year, with officials predicting the number will be higher next year as families who have traditionally sent their children to private schools look to save money by enrolling them in public schools instead.

Still, with money so tight, the $70,000 in relinquished pay raises could make a big difference.

"It could mean the saving of a teacher, if it comes down to it," said school board president Richard Ford.

Ford called the administrators' decision to cut their pay raises an early "holiday gift" and a sign of their dedication to the district. He added that he hoped others -- not only school districts but also state departments --would follow their example. Teacher contract negotiations begin in January.

"It would help tremendously with our current crisis," Ford said. "This should be an example for everyone across the board."