BERKELEY HEIGHTS -- The Board of Education offered up some good news at its final public meeting telling residents that an unexpected increase in retirements freed up money to bring down the tax increase from the previously estimated $125 for the average assessed home to $114 for the year. The BOE approved the $41.4 million budget, which is a .52% decrease over last year's budget.
The board estimated that the savings from the retirements would be $125,000 and would drop the tax rate increase from the projected 1.34% to .99%. While the tax increase for the operating budget is $114, the actual school tax increase will be $375 dollars. The additional $261 dollars is the school district's share of the decrease in rateables led by the tax settlement with Alcatel Lucent in January.
"This has been the most frustrating and uncomfortable situation we have ever been in," said Finance Chairperson John Sincaglia."You won't see any enhancements in the budget -- you'll see things that we used to do but can't do anymore."
Business administrator Donna Felezzola echoed the frustration. "Our budget keeps going down, but costs and the loss of revenue is causing our tax levy to go up," she said. "So we are more reliant than ever on taxpayers for our budget." She said that property taxes account for 87% of the school revenue.
The district started the budget process facing a 2% cap that only allowed the budget to increase by $715,000 but was looking at more than $1.3 million in contractual increases for health benefits, salaries, unemployment insurance and pension contributions. Despite making cuts to every department and receiving $404,000 in state aid, the district had to cut an additional $1.6 million to come in under cap.
And the cuts represent some significant changes to the school district. Kindergarten has been reduced from 3 hours to 2.5 hours, Middle School sports have been eliminated, classes in music and foreign language have been reduced along with electives at the high school resulting is higher class sizes, courtesy bussing has been eliminated and close to 17 staff members will be let go. Capital projects like replacing floor tiles and ceilings in aging classrooms have been put on hold and only health and safety issues are being addressed.
A copy of the budget presentation that will be made tonight can be found at www.bhpsnj.org.