Howell board forced to make extra cuts
School spending plan is subject of debate at June 6 meeting
BY LARRY HLAVENKA JR.
Correspondent

After voters rejected the Howell K-8 Board of Education's proposed 2007-08 school-year budget in the April 17 school election, most residents thought the board needed to shave $1.52 million from the $108.5 million spending plan in order to fulfill the Township Council's recommended cut.

However, it was revealed at a board meeting on June 6 that in addition to paring the $1.52 million as expected, Howell school district administrators also needed to account for an additional $2.65 million shortfall in order to balance the budget.

According to administrators, new state regulations forced the district to operate within a 4 percent "cap" limit; that required $2.5 million worth of cuts to the board's original budget before it was submitted to the state. To place the budget under cap, $2.5 million was taken out of two portions of the spending plan: the district's salary account ($1.5 million) and its capital outlay/lease purchase debt account ($1 million).

Then, an additional $150,000 shortfall was realized due to increasing enrollment and the need for at least three new teachers. Given the council's recommended cut ($1.52 million), the state's cap restrictions ($2.5 million) and the need for teachers ($150,000), the district faced a $4.17 million shortfall.

The board sorted out the financial head-ache during its June 6 meeting at Howell Middle School North in an auditorium filled to near capacity and raced to finish the spending plan, which needed to be submitted to the state by the following morning. Administrators had been given an extension from the original May 31 deadline.

During the meeting, and addressing the assembled gathering of parents and teachers, board member Robert Antonaccio lamented the difficult decisions the board members faced and said the cuts will undoubtedly affect the district's constituencies. He said cuts may be favorable to one group, but distasteful to another, and that creates a difficult paradox.

Regardless, he said it was the community's fault for not passing the budget.

"I'm aggravated with the community for not coming out to vote for the budget and putting us through this mess," Antonaccio said. "And that's what it is - a mess."

Eventually, the board voted 5-2 in favor of a proposal that will rely heavily on an Early Retirement Incentive Program (ERIP) for teachers who are nearing retirement age.

An ERIP offers service credit to teachers and presents them with package incentives in order to help convince them to retire earlier than they had planned. The district sees immediate savings by no longer having to pay their salaries.

Cuts in the areas of activities, athletics and other offerings were made as well.

Board members Patricia Blood, Vice President Louis Corato, Joseph Moscato, Valerie Rosenberg and Antonaccio voted in favor the plan. Board President Mary Cerretani and Sherry Roses voted against it. Board members Elizabeth O'Connell and Gene Tanala did not attend the meeting.

Among the decisions by the board, it used $1 million from its 2006-07 unexpended balance account (money from the present school year's budget which went unspent) for its capital outlay account which had been left $1 million short in order to comply with the state-imposed cap.

Another $1 million toward reducing the $4.17 million shortfall was realized from a change in the district's health care coverage. Officials said the change will not impact the quality or type of health care district employees receive.

The district will save $720,000 based on changes to the three middle school non-core curriculum class schedules. Less class time will be offered in subjects such as art and music. The financial savings will come from teaching positions that will not be filled after other individuals retire.

Additional savings were realized with the elimination of after-school busing ($133,650); a reduction in the athletic account ($100,000); a reduction in staff development money ($93,400); the abandoning of the communication/research officer position ($73,000); a reduction in the co-curricular account ($69,350); and the elimination of the summer paint program ($55,000).

In total, that left the board with $1.05 million to balance the budget, including a $120,000 attrition modification addition.

With a few board members speaking against a large ERIP, the board's attention turned to courtesy busing - a $658,000 item.

Courtesy busing refers to transportation the district provides to students who live close to the school they attend. By law, those students do not have to be provided with transportation and the district offers that service as a "courtesy."

Cerretani said parents would have no trouble with the responsibility of getting their children to school, especially given "the amount of children whose backyards touch school property."

Corato and the majority of the board did not want to eliminate courtesy busing.

"I don't want any child walking to school these days," he said. "Pardon me for saying it, but, there are too many nuts out there."

The board also decided against eliminating five in-school media assistant positions which would have resulted in a $95,000 savings.

Corato said his reasoning was academic-based.

"When I, looking at this from a financial standpoint, looked at the numbers, the elimination of the five media assistants which actually touch the children did not make financial sense," he said.

With few options remaining, the board agreed on an $850,000 ERIP that assumes at least 53 senior-level (10 years of experience) teachers and employees will accept a buyout package. The decision will need to come soon, however - the board set a June 19 deadline for qualified individuals to accept the deal.

On the odds of the ERIP's success, Assistant Superintendent Herbert Massa said, "We are reasonably sure the goals will be achieved."

In 2004, the board voted to exercise a similar ERIP. More than 85 teachers and district employees enrolled in the plan.

Cerretani, who voted against the budget with the large ERIP, said her decision was based on the loss of superior teachers.

"The last time [we did this], we lost a lot of teachers which would have been nice to keep," she said. "I think we lose a lot of talent when we say yes to that."

Superintendent of Schools Enid Golden said she thought the board had few options aside from the ERIP. She believes the district will continue to flourish.

"I strongly urge us to do [the ERIP]," she said. "It is true that we lose master teachers, great friends, but we do have the benefit to attract the best teachers to the district."

Even with the ERIP in place, an additional $200,000 was needed to balance the budget. Rosenberg pressed for the administration to make line item cuts, which it agreed to do. Those cuts are expected to be announced shortly, but will not include teaching or academic-based items.

Rosenberg was displeased with the process.

"Here we are at the 12th hour with no other options and I find that very hard to vote on this evening," she said. "We had choices six weeks ago, but we have no choice tonight."

In April, voters rejected a general fund tax levy of $61.4 million to support the board's $108.5 million budget for the 2007-08 school year. The school tax rate was projected to be 98.9 cents per $100 of assessed valuation ($3,461 in K-8 school taxes to the owner of a home assessed at $350,000).

Township officials said the $1.52 million reduction recommended by the council would instead result in a tax rate of 97.8 cents per $100 of assessed valuation ($3,423 in K-8 school taxes to the owner of a home assessed at $350,000).

More specific information about the total budget and revised tax levy were not available earlier this week.

The K-8 school tax is one portion of a property owner's overall tax bill. The tax bill also includes municipal taxes, Freehold Regional High School District taxes, Monmouth County taxes and several other assessments.

The Howell school district operates 10 elementary schools and three middle schools.