Post by admin on Apr 9, 2010 5:00:52 GMT -5
newstranscript.gmnews.com/news/2010-04-07/Front_Page/Revised_budget_trims_size_of_tax_increase.html
FREEHOLD — The Freehold Borough K-8 School District Board of Education unanimously adopted a $20.7 million budget for the 2010-11 school year following a March 30 public hearing.
Unlike many Garden State school boards that are putting their final stamp on a new budget, in Freehold Borough there will not be any reduction in staff, no programs will be eliminated and class size is expected to remain stable in the upcoming school year.
Administrators revised the budget in the short time span between its introduction and its March 30 adoption. The budget as introduced totaled $20.8 million and had a general fund tax levy of $8.3 million.
The adopted budget totals $20.7 million and has a general fund tax levy of $8.1 million.
The general fund tax levy is the amount that voters will be asked to approve in the April 20 school election. If voters approve the tax levy, the budget is passed.
If voters reject the tax levy, the school district’s budget will be sent to the Borough Council for review. The council may recommend a reduction in the proposed tax levy or leave the budget as the board proposed the spending plan.
The tentative 2010-11 budget proposed a 3-cent increase in the K-8 school tax rate from 78.8 cents to 81.8 cents per $100 of assessed valuation.
The adopted 2010-11 budget proposes a 2.2-cent increase in the K-8 school tax rate, from 78.8 cents to 81 cents per $100 of assessed valuation.
That means the owner of a home that is assessed at the borough average of $250,000 will pay $2,025 (instead of $2,045) in K-8 school taxes in the coming year, up from $1,970 in the current year.
The owner of a home that is assessed at $450,000 will pay $3,645 (instead of $3,681) in K-8 school taxes in the coming year, up from $3,546 in the current year.
The cost of health care benefits, which have risen $500,000, in addition to the rising cost of energy and utilities, which have gone up $61,000, account for a significant portion of the budget increase.
The district’s 2009-10 budget totaled $20 million, which is about $700,000 less than the budget that has been adopted for 2010-11.
The 2010-11 operating budget accounts for $17.4 million, while grants and entitlements total $2.5 million, up from $1.8 million in 2009-10. The 2010-11 budget carries a $796,321 debt service payment, up from debt service of $771,677 in 2009-10.
The Freehold Borough school district will receive $8.4 million in state aid in 2010-11, a reduction of $858,585 from 2009-10.
A combination of property taxes, the use of $700,000 in surplus (savings), other revenues and cost-cutting measures such as a reduction in certain line items will fund the budget, according to Business Administrator Patrick DeGeorge.
DeGeorge explained that in order to balance the 2010-11 school budget, officials had to look at where reductions in spending could occur.
In-house supplies were reduced by $148,540 for starters. Maintenance of plant costs was reduced by $103,326. DeGeorge said the district’s facilities need certain maintenance and/or equipment, but those items will have to wait.
Other reductions included administrative costs, which were reduced by $37,669, and workshops and travel, which were reduced by $53,978. He said he will continue to pursue shared services agreements that will have a positive financial outcome for the district.
“Is this budget adequate? No. Adequacy is what a district spends on things which are part of a thorough and efficient (T&E) education. The state maximum total cost per student is $13,835. The 2010-11 Freehold Borough per student cost is $11,616.” De- George said.
“This means we are $2,219 (per pupil) below maximum. The state says our T&E budget should be $20.4 million. Our actual 2010-11 T&E budget is $15.9 million, which makes us $4.5 million below adequacy. That is $489,287 worse than 2009- 10,” he explained.
The business administrator said the impact of being below adequacy is that school officials cannot add classrooms to solve the district’s capacity issues.
“We cannot repair or replace all the items we need to in our buildings and grounds, teachers will have less and less tools, and programs and staff may eventually need to be eliminated. Students will suffer,” DeGeorge said.
According to Superintendent of Schools Elizabeth O’Connell, the Freehold Borough K-8 School District had 1,337 pupils in 2008-09; there are 1,360 pupils enrolled in 2009-10; and the projected enrollment for 2010-11 is 1,416 pupils.
FREEHOLD — The Freehold Borough K-8 School District Board of Education unanimously adopted a $20.7 million budget for the 2010-11 school year following a March 30 public hearing.
Unlike many Garden State school boards that are putting their final stamp on a new budget, in Freehold Borough there will not be any reduction in staff, no programs will be eliminated and class size is expected to remain stable in the upcoming school year.
Administrators revised the budget in the short time span between its introduction and its March 30 adoption. The budget as introduced totaled $20.8 million and had a general fund tax levy of $8.3 million.
The adopted budget totals $20.7 million and has a general fund tax levy of $8.1 million.
The general fund tax levy is the amount that voters will be asked to approve in the April 20 school election. If voters approve the tax levy, the budget is passed.
If voters reject the tax levy, the school district’s budget will be sent to the Borough Council for review. The council may recommend a reduction in the proposed tax levy or leave the budget as the board proposed the spending plan.
The tentative 2010-11 budget proposed a 3-cent increase in the K-8 school tax rate from 78.8 cents to 81.8 cents per $100 of assessed valuation.
The adopted 2010-11 budget proposes a 2.2-cent increase in the K-8 school tax rate, from 78.8 cents to 81 cents per $100 of assessed valuation.
That means the owner of a home that is assessed at the borough average of $250,000 will pay $2,025 (instead of $2,045) in K-8 school taxes in the coming year, up from $1,970 in the current year.
The owner of a home that is assessed at $450,000 will pay $3,645 (instead of $3,681) in K-8 school taxes in the coming year, up from $3,546 in the current year.
The cost of health care benefits, which have risen $500,000, in addition to the rising cost of energy and utilities, which have gone up $61,000, account for a significant portion of the budget increase.
The district’s 2009-10 budget totaled $20 million, which is about $700,000 less than the budget that has been adopted for 2010-11.
The 2010-11 operating budget accounts for $17.4 million, while grants and entitlements total $2.5 million, up from $1.8 million in 2009-10. The 2010-11 budget carries a $796,321 debt service payment, up from debt service of $771,677 in 2009-10.
The Freehold Borough school district will receive $8.4 million in state aid in 2010-11, a reduction of $858,585 from 2009-10.
A combination of property taxes, the use of $700,000 in surplus (savings), other revenues and cost-cutting measures such as a reduction in certain line items will fund the budget, according to Business Administrator Patrick DeGeorge.
DeGeorge explained that in order to balance the 2010-11 school budget, officials had to look at where reductions in spending could occur.
In-house supplies were reduced by $148,540 for starters. Maintenance of plant costs was reduced by $103,326. DeGeorge said the district’s facilities need certain maintenance and/or equipment, but those items will have to wait.
Other reductions included administrative costs, which were reduced by $37,669, and workshops and travel, which were reduced by $53,978. He said he will continue to pursue shared services agreements that will have a positive financial outcome for the district.
“Is this budget adequate? No. Adequacy is what a district spends on things which are part of a thorough and efficient (T&E) education. The state maximum total cost per student is $13,835. The 2010-11 Freehold Borough per student cost is $11,616.” De- George said.
“This means we are $2,219 (per pupil) below maximum. The state says our T&E budget should be $20.4 million. Our actual 2010-11 T&E budget is $15.9 million, which makes us $4.5 million below adequacy. That is $489,287 worse than 2009- 10,” he explained.
The business administrator said the impact of being below adequacy is that school officials cannot add classrooms to solve the district’s capacity issues.
“We cannot repair or replace all the items we need to in our buildings and grounds, teachers will have less and less tools, and programs and staff may eventually need to be eliminated. Students will suffer,” DeGeorge said.
According to Superintendent of Schools Elizabeth O’Connell, the Freehold Borough K-8 School District had 1,337 pupils in 2008-09; there are 1,360 pupils enrolled in 2009-10; and the projected enrollment for 2010-11 is 1,416 pupils.