Budget Watch:
Consider Total Package – Not Just Salary Freeze

Gov. Chris Christie’s recent comment on school budgets – that voters should reject the proposals if the local teachers union has not agreed to a wage freeze – caused consternation and concern in the education community. Christie made the statement during a news conference on an unrelated subject on Monday in Princeton.

“Voters should consider all of the cost efficiencies made by school boards and, significantly, the education programs and services provided by proposed budgets,” said Marie S. Bilik, NJSBA executive director.

“NJSBA strongly supports the governor’s call for a wage freeze. However, assessing proposed budgets on the basis of whether or not teachers agreed to a wage freeze is neither fair nor accurate.”

Bilik pointed to the wide range of cost efficiencies school boards have incorporated into this year’s proposed budgets due to sharp cuts in state aid.

“NJSBA surveys indicate that over 90 percent of the proposed budgets reflect layoffs of staff, and two-thirds will cut extracurricular programs,” she explained. “Substantial numbers are turning to subcontracting and other methods to preserve education programs. A large number also have received wage concessions from administrators and non-teaching staff.”

In addition, the governor’s comments do not take into account a practical consideration: over one-third of the state’s school districts are now in the process of negotiating contracts that cover the 2010-2011 school year. Therefore, voters in over 260 school districts won’t know on April 20 whether or not the board and the union achieved a wage freeze.

“The New Jersey School Boards Association urges citizens to vote on April 20, and to make informed decisions on proposed school budgets and the candidates seeking over 1,600 board of education positions statewide,” said Bilik.

Rejected Budgets Voters in 538 school districts will act on proposed school budgets on April 20. Rejected budgets undergo review by the municipal governing body, which can reduce the proposed tax levy.

To help school boards and municipalities that will undertake the budget review process this year, NJSBA and the state League of Municipalities will sponsor a teleconference, “Your School Budget Has Been Defeated: What’s Next?” on Thursday, April 22 from noon to 1 p.m.

Restoration School districts that believe they cannot provide a thorough and efficient education with the funds authorized by the municipality may apply to the state Department of Education for restoration of funds. During a hearing before the Senate Revenue and Appropriations Committee on Tuesday, Commissioner of Education Bret Schundler stated that the education department would give full consideration, as specified by statute, to school district applications.

Such applications, however, have been rare in recent years. No districts applied in 2008; only two filed appeals last year. The situation resulted from the high level of voter approval of budgets in recent years – for example, 73.3 percent last year – as well as an active role by the executive county superintendents in expediting the agreements between school boards and municipalities.

State Revenues Down Any hope that state revenues may increase and result in an increase in state aid for 2010-2011 were diminished following updates by the state Treasurer and the Office of Legislative Services to the Assembly Budget and Senate Revenue and Appropriations Committees last week. State revenues through June 2011 will be $250 million below previous projections.

Public Budget Hearing On Monday, April 19, the Assembly Budget Committee will hear public testimony on the proposed state budget, including state aid to education. The meeting will take place at the State House Complex in Trenton, starting at 1:30 p.m.

For updates on the state budget, visit “2010 School Budget Resources”.

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