Budget Watch:
NJSBA Testifies at Assembly Budget Hearing

On April 19, NJSBA testified before the Assembly Budget Committee hearing, recommending the Legislature consider several strategies to help local school boards preserve their educational programs, while not overburdening property taxpayers.

Michael Vrancik, director of governmental relations at NJSBA, urged lawmakers to extend the so-called “millionaires’ tax” for one more year. Vrancik urged lawmakers to use a portion of the additional revenue the state would see to restore some of the aid cuts made for the coming school year, giving priority for restored funding to districts whose employees have agreed to a wage freeze or other wage concessions.

Extending the revenue source for one additional year would also allow time for the governor’s proposed negotiations and management tools – aimed at helping boards control costs – to go into effect.

In the complete testimony, which is posted on the NJSBA website, the Association discussed the need for school district employees to agree to wage concessions in order to help save jobs and educational programs in districts, and expressed the hope that more districts would attain concessions.

NJSBA also suggested the Legislature consider enacting further pension and benefit reforms, noting that the reform package recently signed into law requires new hires to contribute to post-retirement medical benefits when they retire. “That’s a move in the right direction, but it will not start having an impact for at least 25 to 30 years from now,” stated Vrancik’s testimony. “We need action much sooner.”

In addition, the Association reported to the lawmakers on the extraordinary measures that school boards around the state are taking to deal with the current financial crisis and the cuts in state aid they have seen. According to an NJSBA survey, more than 92 percent of districts are proposing layoffs in their 2010-2011 budgets, while a majority of districts are also making program cuts and cutbacks in extracurricular activities.

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