P.O. Box 909 ● Trenton, NJ 08605-0909 ● Phone: 609.695.7600 ● Fax: 609.695.0413 ● Web: www.njsba.org/PI

Voters OK Three-Quarters of Proposed School Budgets
Additional State Aid Continues High Approval Rate – NJSBA

TRENTON, April 16, 2008 — Voters approved approximately 74 percent of the proposed school budgets during the April 15 school elections, according to unofficial results compiled by the New Jersey School Boards Association. 

On Tuesday, voters in more than 90 percent of New Jersey ’s school districts acted on proposed school budgets for 2008-2009 and elected candidates to fill 1,594 school board seats.

Tuesday’s 74-percent budget approval rate came on the heels of a $533 million increase in state aid for public schools. In 2007, voters approved 78 percent of the proposals after a state aid increase of approximately $300 million.  By comparison, voters approved only 52 percent of school budgets in 2006—which marked the fifth consecutive year of frozen state aid.

NJSBA officials attributed this year’s large number of budget approvals to the state aid increase, which ranged up to 20 percent in some districts, as well as to sound fiscal planning by local school districts.

“In the face of a slow economy, the governor’s infusion of state aid for public schools helps taxpayers across the state,” said Kevin E. Ciak, NJSBA president. “Every dollar contributed by the state represents a dollar that does not have to come from the pockets of property taxpayers. It’s clear: State aid eases the burden on property taxes, and helps to build community support for the schools.”

Statewide, this year’s proposed school budgets reflected an average tax levy increase of less than 3 percent.  The average increase also represents a decline from the current year’s 4.3 percent increase and the 6.6 percent average tax levy increase in 2006-2007, according to Gov. Jon Corzine.

Above-Cap Questions Voters in 28 school districts also approved four (or 12 percent) of 33 additional ballot questions. Often referred to as “second ballot questions,” these proposals ask voters to support spending beyond the 4-percent caps on the tax-levy increase. The same law that created the 4-percent property tax cap on the base budgets also requires a 60-percent supermajority approval for any second ballot questions. This 60-percent requirement took effect this year.

 “No other public question in New Jersey requires a supermajority vote, not even Constitutional amendments,” Ciak said.

Had the 60-percent rule not been in effect this year, 11 other second ballot questions, which received support from 50 percent to 59 percent of voters, would have been approved.

Not surprisingly, the 60-percent rule also had a chilling effect on the number of second ballot questions that school boards presented to voters. The 28 school districts with 33 second ballot questions on Tuesday was the lowest number since the current system of second questions was established a dozen years ago. Last year, 65 school districts proposed a total of 87 additional spending questions; 49.5 percent of those proposals gained voter approval.

Construction Bonds Fifteen other school boards asked voters to approve school bond referendums for construction projects.  Voters approved 12 of the 15 construction plans, for a total of $73.75 million of the $136 million that was proposed.

The annual school election, held on the third Tuesday of each April, is one of five dates a year when school boards can schedule special bond referendums. The next date will be Sept. 30.

Review of rejected budgets If voters reject a base budget, the proposal is sent to the municipal governing body for review. The municipality can leave the budget intact, or make cuts.

By Thursday, April 17, election results must be certified, and within two days of that date, school boards must deliver rejected base budgets to municipal governing bodies for review.  The municipal governing body has until May 19 to consult with the school board and determine the amount of local property taxes to be raised for school purposes.

Under certain circumstances, a school board may appeal a municipality’s cuts to the school district’s base budget—if the cuts would undermine the school district’s financial stability, or if the cuts would prevent the school district from meeting state standards for a thorough education. Such budget appeals are uncommon.  School districts have 10 working days following completion of municipal review to file an appeal.

Starting this year, a defeated second ballot question no longer goes to the municipality for a review; the voters’ word is final. Barring a donation from outside, the program or service is lost for the year, and the school board can not fund the program or service by transferring money within the budget. 

The New Jersey School Boards Association, a federation of district boards of education, advocates the interests of school districts, trains local school board members, and provides resources for the advancement of public education.