Saturday, May 8, 2010

CAN THE COUNCIL CUT THE BOTTOM LINE?

I am trying to find the law that prohibits the Council from cutting the bottom line of the School Budget. To date through multiple files this letter from DOE is the only reference I have found. It seems to contradict all verbal statements including municipal Counsels, that are made to the contrary.

NJDOE News

For More Information Contact the Public Information Office:
Alan Guenther, Director
Kathryn Forsyth
Beth Auerswald
Richard Vespucci
609-292-1126

For Immediate Release: April 21, 2010


Information on Preliminary School Election Results

Question: Does time remain to save jobs and programs if teachers accept wage freeze?

Answer: Although many school budgets were defeated in yesterday’s election, Education Commissioner Bret Schundler today reminded teachers, school boards and taxpayers in all districts that they can continue to work together to reduce layoffs and save important academic programs.

"This year, whether local school budgets were defeated or not, we will be encouraging all school boards and teachers’ unions to continue negotiating until the state budget is adopted at the end of June. If more teachers accept a one-year wage freeze, there is still time to save the jobs of their colleagues and preserve important programs for children," Commissioner Schundler said.

According to preliminary figures, 58.4 percent of the school budgets, statewide, were defeated this year. For the past two years, 26.4 percent were defeated. Eight districts requested additional spending in separate ballot questions, and all were defeated.

Budgets fared much better in districts where teachers accepted wage freezes. Voters approved 13 of the 19 budgets in wage freeze districts for an approval rate of 68.4 percent – much better than the statewide average.

Voter turnout, statewide, increased sharply, from 15 percent last year to 26.68 percent this year. Last year, 728,414 people cast votes. This year, voter turnout increased by nearly half a million people, with 1,250,436 going to the polls.

"Taxpayers have spoken, and their voice should be respected," Commissioner Schundler said. "They want relief. The teachers’ union, school boards and local governments should work together to reduce taxes while minimizing layoffs and program cuts."

Question: What happens to defeated budgets?

Answer: In districts where voters defeated the school budget, boards of education must submit their spending plans to the local government for review, and town councils or committees should examine budgets to see if cuts can be made.(red mine)

"School budgets consume the greatest share of local property taxes. Mayors should consider the will expressed by voters as they examine whether it is proper to make cuts that can trim property tax bills," the commissioner said.

Unless they appeal the decision, school districts must reduce spending by the amount recommended by the local governments. The governments may make suggestions about which programs or personnel should be eliminated, but school boards can make their own decision about what to cut, as long as the same amount of money is saved.

Question: Can budget cuts be appealed?

Answer: If school boards feel the cuts are too deep or important programs are being hurt, they can appeal budget reductions to the commissioner.

"I will review budget cuts submitted to me in an impartial manner, with input from executive county superintendents," Commissioner Schundler said. "If the proposed cuts would actually harm school districts or eliminate essential programs, we will support the school district’s appeal."

Commissioner Schundler finished his remarks by thanking all the voters who participated in Tuesday’s elections, while supporting reforms that would increase turnout.

"It is my hope that, next year, school elections will be held in November, as Gov. Christie has recommended. I agree with the governor that moving the elections to November would increase voter turnout even more, and on a continuing basis," Commissioner Schundler said, "so that a larger number of people can decide who will be elected to school boards and what will happen to future tax bills."

I find no mandate that the Council can not make cuts in the budget before returning it to the BOE., if this DOE memo is to be believed. I will try to find the legislation repealing the Abbott Districts which our Assembly persons supported to see if the there is a mandated annual increase in the amount that community must contribute to to PSS. That could be the only item which can not be altered downwards. Whoever finds it please post it here in comments.


1 comment:

  1. Look at the school funding act of 2008, which is codified at New Jersey Statutes Annotated, Chapter 18A:7F. You can find it at the New Jersey Legislature website, then click on Statutes in the left menu bar. At 18A:7F-5(b), the statute provides "b. Each district shall have a required local share. For districts that receive educational adequacy aid pursuant to subsection b. of section 16 of P.L.2007, c.260 (C.18A:7F-58), the required local share shall be calculated in accordance with the provisions of that subsection." Plainfield, as a former Abbot District, receives educational adequacy aid. When you look at section 7F-58(b) that is noted above, it contains a pretty technical description of the funding formula, but it provides that we must pay our general local levy plus 4%. I believe that the 4% is a reference to the 4% cap that currently exists on local levies. The bottom line on this, so far as I can see, is that the former Abbot districts must pay their general local levy plus 4% in order to phase in their increasing share of the cost of education in their districts. Therefore, the City Council cannot decrease the amount of the general local levy, all that they could do is move line items around without decreasing the amount. Maybe someone on the City Council can comment on this to see if the above is correct.

    ReplyDelete