Aid battle brews in P'burg State gives district option of accepting 3% increase or heading to court, official says. Wednesday, March 14, 2007 • By DANIEL HAUSMANN • The Express-Times PHILLIPSBURG | State officials have told the Phillipsburg School District to expect a 3 percent hike in state aid, far less than the $7.7 million the district planned to request. District Business Manager Bill Poch said the state Department of Education informed New Jersey's 31 economically disadvantaged school districts, also known as Abbott districts, of the budget changes during a March 6 meeting. The department gave districts such as Phillipsburg the option of taking a 3 percent hike in state aid or submitting a flat-funded budget and then appealing for court-mandated state assistance. The same thing happened during the 2006-07 budget process. Phillipsburg was flat-funded and asked for close to $10 million in state aid. After a lengthy appeals process, the district settled for $886,000. This year, Phillipsburg needs $7.7 million in assistance. Taking the 3 percent means only $1.1 million in state aid and also layoffs. The state already told Phillipsburg it would have to compensate for a $271,000 cut in state aid with the first local school tax hike in a few years. Poch said it's too early to know how much staff would have to be cut. "We have to look at the entire budget for more reductions," Poch said. Administrators have been able to rework the budget to get the difference down to about $1.6 million. "It's a serious situation we have to face," Superintendent Gordon Pethick said. "At what point will the cuts impact us to the point where we can offer the programs for improvement?" Department of Education spokesman Jon Zlock didn't have any information on the budget requirements Tuesday afternoon. Administrators already are looking to cut new elementary school security positions and facility repairs from the budget. The district also could cut $143,000 in expiring high school trailer leases if the state Schools Construction Corp. picks up that tab. Pethick said decisions on a tax increase fall to the board. Phillipsburg was supposed to adopt a budget by Tuesday but the state gave Abbott districts an extension until March 20 to make a decision. Phillipsburg will introduce the budget in a special meeting Monday night. It's all part of an annual spring fight with the state that began when the Abbott court orders went into effect. "I don't think we ever got what we initially asked for," Poch said. "It's gradually gotten worse and tighter." Attorney Richard Shapiro represents Phillipsburg on Abbott matters. He said he is concerned about what the state's actions could mean to the Abbott mandates. "The districts were flat-funded last year with the understanding that was a one-year occurrence," Shapiro said. "This could lead to the undermining of the Abbott decrees. You're talking about reductions in Abbott funding over a two-year period." Shapiro said he and his clients, who include other Abbott districts, were looking into possible court actions. Reporter Daniel Hausmann can be reached at 610-258-7171 or by e-mail at dhausmann@express-times.com. © 2007 The Express-Times. Used by NJ.com with permission.