Post by BrianSullivan on Feb 27, 2010 12:41:17 GMT -5
BY CLARE MARIE CELANO Staff Writer
FREEHOLD — A recent announcement by Gov. Chris Christie will suspend state aid payments to school districts for the remainder of the 2009-10 school year and compel administrators to use their district’s surplus and reserve funds for current operating expenses.
Christie said he took the action to close a deficit in the current state budget. He has indicated that state aid for the 2010-11 school year will be reduced as he looks to close a projected deficit in the 2011 state budget.
In the Freehold Borough K-8 School District the loss of state aid will translate into a $1 million reduction between now and June 30, according to Business Administrator Patrick DeGeorge.
The district was expecting to receive $9.3 million in state aid during the 2009-10 school year (in support of a $20 million school budget), but that state aid amount will now be reduced by about $1 million, according to the business administrator.
“The state is telling us how we will make up the difference in funds,” DeGeorge said. “They told us we have to (use) 100 percent of our excess surplus from 2008-09 and then (use) 25 percent of all remaining surplus and reserves.”
He explained that $724,000 will be taken from the 2008-09 excess surplus and $304,000 will be taken as the 25 percent from other surplus and reserves.
In addition to the $724,000 the district had as excess surplus, the savings included $825,000 in the maintenance reserve, $250,000 in the emergency reserve, and $142,000 in an excess unreserved account.
DeGeorge said the district’s excess surplus of $724,000 was expected to have been placed in the 2010-11 budget as a source of revenue. The district will no longer have that money to place in the budget for the coming school year.
“The (money in the district’s surplus and reserve accounts) would have been used for any increase in health benefits, or emergency situations, and for any capital improvements projects,” De George said. “Those projects may now be in jeopardy.”
News reports published on Feb. 17 indicated that Christie has advised school district administrators to prepare for a 15 percent reduction in their state aid for the 2010-11 school year.
The Freehold Borough Board of Education is scheduled to adopt a tentative 2010-11 budget on March 22. A public hearing for the budget is scheduled for March 29. Residents will vote on the spending plan in the April 20 school election.
newstranscript.gmnews.com/news/2010-02-24/Front_Page/District_will_use_surplus_to_make_up_for_aid_cut.html
FREEHOLD — A recent announcement by Gov. Chris Christie will suspend state aid payments to school districts for the remainder of the 2009-10 school year and compel administrators to use their district’s surplus and reserve funds for current operating expenses.
Christie said he took the action to close a deficit in the current state budget. He has indicated that state aid for the 2010-11 school year will be reduced as he looks to close a projected deficit in the 2011 state budget.
In the Freehold Borough K-8 School District the loss of state aid will translate into a $1 million reduction between now and June 30, according to Business Administrator Patrick DeGeorge.
The district was expecting to receive $9.3 million in state aid during the 2009-10 school year (in support of a $20 million school budget), but that state aid amount will now be reduced by about $1 million, according to the business administrator.
“The state is telling us how we will make up the difference in funds,” DeGeorge said. “They told us we have to (use) 100 percent of our excess surplus from 2008-09 and then (use) 25 percent of all remaining surplus and reserves.”
He explained that $724,000 will be taken from the 2008-09 excess surplus and $304,000 will be taken as the 25 percent from other surplus and reserves.
In addition to the $724,000 the district had as excess surplus, the savings included $825,000 in the maintenance reserve, $250,000 in the emergency reserve, and $142,000 in an excess unreserved account.
DeGeorge said the district’s excess surplus of $724,000 was expected to have been placed in the 2010-11 budget as a source of revenue. The district will no longer have that money to place in the budget for the coming school year.
“The (money in the district’s surplus and reserve accounts) would have been used for any increase in health benefits, or emergency situations, and for any capital improvements projects,” De George said. “Those projects may now be in jeopardy.”
News reports published on Feb. 17 indicated that Christie has advised school district administrators to prepare for a 15 percent reduction in their state aid for the 2010-11 school year.
The Freehold Borough Board of Education is scheduled to adopt a tentative 2010-11 budget on March 22. A public hearing for the budget is scheduled for March 29. Residents will vote on the spending plan in the April 20 school election.
newstranscript.gmnews.com/news/2010-02-24/Front_Page/District_will_use_surplus_to_make_up_for_aid_cut.html