Defeated Budget Review Process:
NJSBA Offers Resources

For the first time in 34 years, a majority of the state’s local boards of education and municipal governing bodies are participating in the complex and potentially divisive review of defeated school budgets. By May 19, the review must be complete and school tax levies struck.

To help local school boards through the difficult process, NJSBA has developed the following resources:

• Your School Budget Has Been Defeated: What’s Next? A recording and slides from NJSBA’s April 22 telephone conference is accessible under the “What’s New” section of www.njsba.org. The 90-minute program features school and municipal officials with experience in the budget review process, as well as state education officials, including Commissioner of Education Bret Schundler.
• The 2010-2011 Budget Review and Restoration of Reductions Memo will be available soon on the NJSBA website. The document provides legal background on the defeated budget review process. (See sidebar at right.) The memo is also designed to help boards determine whether to apply for restoration of reductions made by the governing body.
• School officials may also consult directly with NJSBA Legal & Policy Services staff by calling toll free (888) 886-5722, ext. 5254, after 1 p.m. Field Service Representatives can also provide guidance. Call (888) 886-5722, ext. 5218.

Contract Reopening On March 18, NJSBA called on the state teachers union to encourage its locals to cooperate with school boards in reopening contracts with the goal of attaining a wage freeze. Over 85 percent of the approximately 360 school boards with existing teacher contracts agreements asked their local unions to reopen negotiations, according to an NJSBA survey. However, state Department of Education data, issued April 15, shows teachers agreed to wage freezes or other salary concessions in only 20 districts.

In all, 145 districts have reported some number of staff – either administrators, teachers or support staff – accepting either a wage freeze or other compensation change.

Last week, Commissioner Schundler called on municipal governing bodies involved in budget review to approach teacher unions concerning the reopening of contracts.

“NJSBA believes most boards would welcome municipal governing bodies weighing in on the effort,” said Marie S. Bilik, NJSBA executive director. “However, the board is responsible for negotiating with the union and must be involved in every step of the process.”

Restoration Process In an April 22 memo to school board presidents and superintendents, Schundler made note of school districts’ ability to apply to his office for restoration of school tax levy reductions made by the municipality following budget review.

“The Commissioner of Education is required to consider the appeal in an impartial manner and if proposed spending reductions would make it impossible for a school district to provide a through education to students, the Commissioner will support the district’s appeal,” he wrote.

No school districts exercised that option, which can be used under limited circumstances, in 2008. Only two districts filed for restoration last year. In 2008 and 2009, however, voters approved close to three-quarters of school budgets. With the majority of budgets defeated this year, more school boards may find it necessary to file appeals.

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