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"...We do appreciate that the state has ‘run’ the formula for next year so that districts know where they stand in terms of enrollment increases and local ability-to-pay...(As GSCS stated in last year's budget testimony) "Not only are schools among the few areas not being cut in the Governor’s proposed budget, they also are receiving increased aid, or flat aid overall"...The same can be said for the state aid provided to schools via the Governor’s March 10 Budget Message, and for this we are grateful. The infusion of federal stimulus dollars goes a long way to help school budgets stabilize programs for students, as least for FY10. But the economic crisis has meant that in year two, the SFRA formula cannot be funded as designed and even with the prop of the federal stimulus aid, schools will face reductions in programs and staffing.
Attached is a GSCS Quick Survey that reflects today’s reality and predicts a downward spiral that will continue to affect many districts across the state."
Garden State Coalition of Schools/GSCS Message for Fiscal Year 2009-2010: Stability and Fairness
Testimony before the Joint Assembly Budget and Appropriations Committees
State Budget FY10, March 26, 2009, Committee Room 11, The Annex
Good morning, Chairman Greenwald, and members of the Committee. I am Lynne Strickland, Executive Director of the Garden State Coalition of Schools. Today GSCS represents a range of school districts throughout the state—from lower to middle to upper income districts—that share a common denominator interest in and support for quality public education. Together our member districts serve approximately 375,000 children through its statewide membership of more than 100 school districts (www.gscschools.org).
Thank you for the opportunity to provide brief comments before you today on the State Budget for FY2010.
School Funding Context
FYI - Since 1990 there have been 5 different school funding formulas, in between there have been approximately 6 to 7 years of flat funding without the formulas being run, so that enrollment increases and local ability-to-pay criteria were not updated. The list is this: QEA, QEA II 1992, Public School Reform Act (PSRA) 1994, Comprehensive Education Impact and Finance Act (CEIFA) 1996, School Funding Reform Act 2008. More often than not these formulas were only fully funded in their initial year; CEIFA was suspended altogether its last 6 years.
These are daunting times for so many in NJ...We are confronted by a flailing national economy that has been nominated as the worst since the Great Depression of 80 years ago; the School Funding Reform Act of 2008 - a brand new law- is currently under challenge at the Supreme Court.
We do appreciate that the state has ‘run’ the formula for next year so that districts know where they stand in terms of enrollment increases and local ability-to-pay. And, as we noted in our state budget testimony last year, “Not only are schools among the few areas not being cut in the Governor’s proposed budget, they also are receiving increased aid, or flat aid overall.” The same can be said for the state aid provided to schools via the Governor’s March 10 Budget Message, and for this we are grateful. The infusion of federal stimulus dollars goes a long way to help school budgets stabilize programs for students, as least for FY10.
But the economic crisis has meant that in year two, the SFRA formula cannot be funded as designed and even with the prop of the federal stimulus aid, schools will face reductions in programs and staffing.
Attached is a GSCS Quick Survey that reflects today’s reality and predicts a downward spiral that will continue to affect many districts across the state.
Some basic concerns
- The pension deferral plan: builds a hole into school budgets that will costs more to fill in future dollars.
- Federal Stimulus: 1) Fiscal Stabilization funds - Good for FY10, but what happens in FY11? 2) Lack of information of what, when, how of the additional Title 1 and IDEA funding will impact budgets? This aid should help local districts a great deal but it remains up in the air to date. Schools have been advised not to include them in their budgets for FY10.
- Special Education Costs: Still far outpacing state caps, now averaging 10% increases. Bergen County reports a spread of 4%-34% in tuition increases. Shouldn’t there be cost controls relative to the 4% levy cap? The $78M for Extraordinary Aid in the proposed budget is needed more than ever to help stabilize the impact of these costs.
- Rising fixed costs continue to exceed the levy cap for health benefits, utilities, special education mandates.
- Policies for new programs that effect immediate change need review for impact and district readiness.
Flexibility is needed now and in the near future
We look forward to working with you in seeking possible legislative changes where flexibility – e.g., such as increasing allowable general fund balance percents or revisiting the 60% super majority required to pass second questions (Whelan/Voss bills) - may become a necessary element in order to provide underpinnings that enable district programs to remain stable and be fairly treated during the economic turbulence we all face. Thank you.
GSCS Quick Survey STATE BUDGET TESTIMONY FY0910 : 12 GSCS Member districts (updated 3-25-09)
1 Will your district have to layoff people? (FYI - Not having to lay off = a 2% district; a 20% district) 10 of 14 = yes
2 Approximately how many will be laid off and what type of functions (teaching, administrative, PERS type of employee?)
1] 7 Secretaries, 6 teachers, one librarian, on administrators, two business office personnel, 9 aides and half the lunch aides, 13 coaches and several club advisors.
2] 1 supervisor, 2 librarians, 2 elementary (4 teachers; 1 supervisor) All are real positions; either retirements not being replaced or staff reduction from current levels. The elementary cuts are generated by increasing class size.$837,000 cuts in staff (salaries only, this does not count benefits) - this list is more complete with numbers; Supervisor (120,000) Building Tech Aides (100,000) 1/2 PE (25,000) 1/2 Theater (25,000) Spec Ed CST member (100,000) Guidance (97,000) 2 Librarians (190,000) 1 middle school (50,000) 2 elementary (100,000) part time music (30,000) – Music is likely to be restored with the additional aide we received
3] We will lay off 5 aides, 1 custodian and 1 secretary. Our Board is meeting this week (ahead of our final budget hearing on 3/30) to determine if we will lay off teachers to get our tax levy increase below 3.9%
4] 2.6 FTE (would have been more but enrollment declined)
5] If the budget passes we will have to cut 1 admin. 1 teacher, and 1 secretary. This added to a budget that had already had three staff positions cut when we thought we would get the 20% aid. (Anticipating a 20% increase in state funds and wanting to get to a zero tax levy budget, we cut one administrative position and 4 teacher positions. We rejected requests for three additional positions the curriculum dep’t. recommended. When we got 5% aid (not the 20% the SFRA would have provided if fully funded) increase, we had to make an additional 1.2 million in cuts, that included an additional administrative position, a teacher and a secretary amongst an array of other cuts in program and supplies.)
6] no
7] 19 staff positions: 9 teaching, 3 administrative/supervisory, 3 custodial, 1 grounds, 2 clerical
8] We have reduced staff over the past three years- Art teacher, Music teacher, Computer teacher, Librarian, Vice Principal, Night Custodian—for 2009-2010. We will be reducing secretarial help - 2 will now work only four days a week instead of five days a week.
9] no
10] custodial staff
11] Each year now, under the 4% cap, we just lay off more and morepositions and cut programs. The immediate flow of stimulus funds to the district would prevent some of the proposed cuts. To get within the 4% cap, we had to cut $800,000 from the proposed budget of approximately $30 million, including six positions (5 teachers, 1 office staff).
12] no
13] 2 teachers/10 support staff
14] We are not laying anyone off per se, we are reducing classrooms assistants by 9 full-time positions and our technology coach from F/T to P/T to fund 7 new teaching positions that are required based upon our pr
3 Will your budget be at or under the 4% tax levy cap? 14 of 14 = yes [1 at 0%; 1 at 1.62%; 1 at 1.68%; 8 under 4%]
4 Are you going out for a separate question? 14 of 14 = no
5 What is your surplus/general fund balance anticipated to be for FY0910? 7 = 2%; 1 = 1% 1 = less than 1%; 5 = NA
6 Will your budget anticipate any federal stimulus funding? IDEA? Title 1? 10 = no; 1 = yes; 3 = NA
