Board of Education Proposes School Cuts, Tax Increases

After months of debate, the Bernards Board of Education presented a complete draft of the school budget Wednesday evening, including a 5.07 percent increase in property taxes and $500,000 in program cuts.

The Board voted unanimously to adopt the proposal after hearing public comment and holding a board forum.

The proposal includes cutting $110,000 in administrative costs, $40,000 in support services, $290,000 in kindergarten and special education aids (preserving a full-day kindergarten model) and $60,000 by eliminating American Studies and Japanese classes.

The tax increases amount to $1 million over the four percent tax cap and about a $338 increase in the annual tax bill per household. The board is able to ask for money over the cap due to a state mandate that allows school districts to recoup up to the amount of money they lost in state aid for 2010-11 in new taxes, which would mean up to $3.9 million in Bernards.

The board will also push for a 1.5 percent salary increase for teachers instead of the original prediction of a 3 percent increase. If successful in negotiating lower salary increases, the board predicts the district would save $600,000 toward the 2010-11 budget. Other savings could come from declining enrollment and retirements, currently projected as $300,000 in savings.

The board will appropriate $1 million in surplus extraordinary aid funds, as well as the new $1.5 million extraordinary aid payment from the state toward the 2010-11 budget, essentially depleting the district's current surplus funds. Combining the $2.5 million in extraordinary aid funds with the $600,000 in lower salary increases, $300,000 in declining enrollment and retirements, and $500,000 in program cuts adds up to replace the $3.9 million hole in the 2010-11 budget.

Board of Education finance chair Lou Carlucci stressed the importance of building a surplus for the 2011-12 school year. Carlucci said that without taxing $1 million over cap this year, the district would see a $3.3 million budget shortfall for 2011-12, with no available surplus to help cover the gap. Because the extra $1 million would count as part of the tax base in the following year, any cap restrictions would limit the percent increase to a number $1 million more than if the district chose not to raise taxes over the cap this year. That multiplier effect would result in a predicted budget shortfall for 2011-12 of $1.3 million as opposed to $3.3 million. Both scenarios assume a 2.5 percent tax cap for 2011-12 as proposed by Gov. Christie.