Likely state-aid cuts frustrating districts

In Washington Township, taxpayers were braced for a possible 34-cent tax rate increase for next year's school budget.

Now, the tax shock could be worse for Washington Township and districts across New Jersey.

In a letter to New Jersey's 600-plus school districts, acting Education Commissioner Lucille Davy has advised schools to plan their 2006-07 budgets around current levels of state aid -- "with the understanding that final numbers could in fact be lower."

"Reductions in state aid are only going to shift that tax burden from the state to local revenue," said frustrated Washington Township Superintendent John Szabo, whose district is paying for a new high school and whose taxpayers, on average, can expect to pay $578 more.

This year will mark the fourth in the past five with no significant aid increases for all but New Jersey's poorest school districts.

The state underwent several years of cuts through 1990 before a change in the funding law ended the trend, according to Michael Yaple, spokesman for the New Jersey School Boards Association.

Gov. Jon Corzine's budget address is set for March 21, with figures on classroom aid expected to be released two days later.

Corzine will attempt to bridge a budget gap estimated at $4 billion.

Districts will have to submit budgets to county superintendents by March 14 -- before they actually know how much aid to expect.

Szabo said the situation is unacceptable, and Hamilton Assistant Superintendent Carol Chiacchio echoed the sentiment.

"Naturally, we're not happy about that at all," she said. "It was bad enough when it was flat, which wasn't really flat as enrollments went up."

Her district may cut benefits and facilities maintenance expenditures, she said.

Lynne Strickland, executive director of the Garden State Coalition of Schools, which represents wealthier and middle-income districts, said districts should be ready to tighten belts, not just expect a funding freeze.

"It's as if we're being prepared for bad news," Strickland said. "I hear legislators echo similar statements."

The situation is exacerbated, she said, by a law that restricts surplus funds to only 2 percent of the budget and limits increases to the rate of inflation, which this year is 4 percent.

Special-needs districts such as Trenton, Pemberton Township and Burlington City shared more than a $150 million increase for programs required under the Abbott v. Burke court rulings.

Normally, districts can introduce their budgets in February. They have been on hold because of the delays in the state budget process, said Department of Education spokesman Rich Vespucci.

The department will try to share preliminary news about state aid with the districts if it becomes available, he said.

Hopewell Valley Business Administrator John Nemeth fretted about the minimal time to tell his board the specifics of his proposed budget.

"I can't give out clear directives," said Nemeth, whose district is looking to eliminate nine jobs. "That's scary," Nemeth said, though the district may be able to trim the jobs without resorting to layoffs.

The budget adoption deadline is March 31.

School elections will be as scheduled on April 18.

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Contact Larry Hanover at lhanover@njtimes.com or at (609) 989-5726.