P'burg's
schools dodge proposed funding cuts
Eight Abbott districts at risk.
State thinks they should contribute more.
Friday, March 24, 206 • By SARAH CASSI •
The Express-Times
For anyone who's ever complained about
Phillipsburg's taxes, here's a case where they may have come
in handy.
State education officials notified eight
of New Jersey's neediest school districts that funding might
be cut because their property tax rates are too low compared
to their economic development.
Phillipsburg didn't make the
list.
Phillipsburg Business Administrator Bill
Poch said district officials were aware of the impending
cuts last week, but he didn't know which districts would be
on the list.
The unsettling news came the same week
the school board unanimously approved a $65.9 million budget
for the 2006-07 school year that called for no tax
increase.
"I don't know how much of a sigh of
relief it was (not to be on the list) because we're still
asking for a lot of discretionary aid," Poch
said.
The district's budget hinges on almost
$10 million in discretionary aid -- state money awarded to
New Jersey's 31 poorest districts known as Abbott districts,
a group that includes Phillipsburg. New Jersey has 31 Abbott
school districts, poor districts named after court decisions
ordering equitable per-pupil financing.
Poch has said 35 new positions and
programs would be the first to go if the requested
discretionary aid is cut.
The state will announce discretionary aid
figures in May.
"We're not commenting on what this means
for Abbott districts beyond what it means today," state
Department of Education spokesman Jon Zlock said.
On Thursday, Abbott districts Newark,
Jersey City, Garfield, New Brunswick, Perth Amboy, Asbury
Park, Long Branch and Neptune learned they could face tax
increases to compensate for the loss in funding.
Kathryn Forsyth, director of the
department's public information office, said the districts
were chosen because "basically, they've become a little bit
wealthier." Forsyth said districts' economic development was
taken into consideration.
In a letter to Newark school officials,
acting Commissioner of Education Lucille Davy said the cuts
were only applied to Abbott districts that could afford
it.
"While all other school districts have
had to raise local taxes to address increases in spending
during the past several years, the Abbott districts have not
been required to raise their local levy during that time
period whether or not they were fiscally able to do so. The
governor's recommendation is designed to begin to address
this inequity," Davy said.
The Newark school district faces the
largest cut, according to figures released Thursday by the
Department of Education. Newark's state aid would go from
$69.9 million in 2005-06 to $69 million for the upcoming
school year.
The Garfield school district had the
least cut, losing $404,038 in funding for the next school
year.
The state is limiting the resulting tax
increase to $125 for the average household tax. Newark stood
to lose $17.3 million based on their property tax rates, but
the imposed limit kept the cutback to $8.2
million.
Forsyth said districts could make budget
cuts rather than increase taxes to accommodate the loss of
aid. If that would happen, Forsyth said, the state would be
obligated to review the district's budget and ensure the
education provided met state standards.
Reporter Sarah Cassi can be reached at 610-258-7171 or by
e-mail at scassi@express-times.com.
© 2006 The Express-Times. Used with
permission.
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