Phillipsburg School District initial stimulus application rejected, must reapply for $1.3 million still available

PHILLIPSBURG | Phillipsburg School District officials must find other ways to spend stimulus monies after the state Wednesday rejected their original application to use a portion of the funds.

The New Jersey Department of Education this month made available half of the nearly $1.29 million earmarked for town schools. Phillipsburg applied for only $156,000 of the roughly $744,000 available in Individuals with Disabilities Education Act, or IDEA, funds, School Business Administrator William Bauer said.

The balance of the money -- about $543,000 -- comes from funds designated for Phillipsburg because of its status as a low-income district.

The district focused its initial IDEA request on computer hardware upgrades that the state subsequently deemed "unallowable expenditures" under stimulus spending guidelines, Bauer said.

Education Department spokeswoman Beth Auerswald said the district will have an opportunity to reapply next month. At that time the district will also have access to its entire share of stimulus money.

"First off, the money is not gone," Auerswald said. "In some cases, they can apportion out some money for special education. Otherwise they can apply for a different use altogether."

Auerswald said the state did not see how the proposed hardware upgrades would specifically help special education students.

She said the IDEA funds can only be used for the portion of the program's cost solely benefitting special education students.

Among the programs the district was hoping to fund included a computer system tracking student data and a cafeteria program capable of following students' needs such as which ones receive free or reduced lunches. Bauer said these programs were proposed with the district's special education population in mind.

According to Bauer, there is no way for the district to dispute the state's decision on the application.

"There's no recourse or place to go to appeal," he said. "We'll just have to move on."

Superintendent Mark B. Miller said he wants more information from the state on why the expenses were denied and what the approval rate has been so far across the state.

"The state doesn't give you a reason," Miller said. "I'd really like to know why."

Bauer said the next step is for the district's Office of Special Services to examine what other areas in the district are in need of extra dollars.

Bauer said the district was told originally the funds would not be available until October, but said the district will seek them whenever they are made available.

"If it's ready earlier, we'll apply earlier," Bauer said.

The stimulus funds have been a hot topic in the district since being awarded in April. District critics include Phillipsburg Education Association President Barbara English, who lambasted school officials for not using the money to save teachers' jobs.

The district this year had to cut 25 teachers and 18 aides to fill a $2.3 million budget shortfall.

English said the No. 1 federal guideline accompanying the funds is to save and create jobs.

Miller points to another element in the federal guidelines warning district's to spend funds wisely, as the money will only be available to districts for a maximum of three years.

Phillipsburg School District officials applied to use $156,000 of their nearly $1.3 million in stimulus money for special education programs, but the New Jersey Department of Education denied the district's specific requests. Programs applied for include:

-- A student data tracking program capable of recording test scores, state reports, health information and more.

-- A cafeteria program able to track students' dietary needs, including who receives free or reduced lunches.

-- An upgrade to the district's Cisco computer hardware and expansion of secure wireless access from pre-kindergarten to 12th grade.