Phillipsburg School District tentative budget cuts 11 teachers, reduces school tax by 28 cents per $100, could privatize noninstructional staff

Tuesday, March 23, 2010
By Sarah M. Wojcik
The Express-Times

PHILLIPSBURG | Officials in the Phillipsburg School District unveiled a preliminary 2010-11 budget Monday with good news for taxpayers, but a last-minute dispute with the county education office could balloon the number of faculty cuts from 11 to 47.

The $52.4 million proposal would reduce school taxes by 28 cents per $100 of assessment while eliminating 11 certified teaching positions and possibly privatizing noninstructional staff such as security and maintenance.

The proposed budget exceeds New Jersey's 4 percent tax cap, but because of a town-wide property re-evaluation, Phillipsburg taxpayers would be spared a tax hike.

It was not immediately clear what the budget would mean for Phillipsburg School District sending districts.

School Business Administrator William Bauer said the budget exceeds the tax levy cap by about 30 percent. He warned the board the budget could change drastically if the Warren County Department of Education does not approve the additional spending.

Districts are permitted by law to surpass the levy cap in extenuating circumstances such as a severe loss in state aid, but state Education Commissioner Bret Schundler is discouraging county superintendents from allowing such increases.

Phillipsburg stands to lose about $2.6 million in state aid this year following the loss of $12.3 million combined in the last two years.

Bauer said Phillipsburg is in a unique position this year because the property re-evaluation increased the tax base by $425 million. The proposed budget would actually shrink the school tax rate from $1.28 to $1 per $100 of assessed property value.

Because most town property values increased under the reassessment, Bauer said, a typical town resident will likely pay the same or a little less in school taxes under the proposed budget.

The reassessment provides the district with a flexibility that could not have come at a better time, according to school officials.

"If it wasn't for the fact that Phillipsburg reassessed their situation, we'd be dead in the water," Bauer said.

Superintendent Mark B. Miller said if the county forces the district to make no levy adjustments, the losses would be devastating. Eliminating 47 teachers would mean classrooms would swell to between 35 and 40 students, Miller said.

"We just can't do it like that anymore. If the county rejects our budget, we might as well turn the keys over to them," Miller said.

School board President Paul Rummerfield said the district expected an uphill battle with the state but did not anticipate such a fight with the county.

"It's a little disheartening based on the fact that we as the Phillipsburg School District seem to be fighting two fronts," Rummerfield said.

Bauer said he plans on discussing the issue with the county superintendent throughout the week but will advise the school board to introduce the district's tentative budget proposal for a final vote Thursday.

School officials say the future depends largely on how well the district can wean itself off state aid.

"That's where my focus has been, trying to produce more revenue so we're less dependent on the state and don't have to beg them for every dollar," Bauer said.

Rummerfield said the dismal aid numbers are not a fad.

"All indications look like state funding on all levels is going to be reduced, not just on this year, but in subsequent years," Rummerfield said.

The Phillipsburg School District tentative budget introduced Monday will be open for public discussion and a final school board vote 6 p.m. Thursday. The proposed budget includes:

Reducing the tax rate 28 cents for town property owners;

Eliminating 11 certified teaching staff;

Possibly privatizing noninstructional staff, such as security or maintenance.