P'burg School District braces for staffing cuts Board faced with $10 million shortfall Tuesday, February 26, 2008 • By ANDREA EILENBERGER • The Express-Times PHILLIPSBURG | Phillipsburg School District's proposed $59.6 million budget means cuts across the board -- including employees and programs -- but district officials aren't yet providing specifics. School board members introduced a preliminary budget Monday night that hinges on an 8 percent increase in local tax revenue. Closing a $10 million budget gap in a labor-intensive environment has forced the issue of employee cuts, board President Paul Rummerfield said. "With the figure we had to cut -- it's going to necessitate some job reductions," Rummerfield said. Salaries and benefits comprise about 75 percent of this year's budget, school officials have said. Rummerfield said it is premature to disclose which positions could be on the chopping block but said that board members have looked at all staff levels. School officials are also proposing reductions in things like programs, clubs and athletics, but they wouldn't elaborate. "I think you're going to see cuts in all areas," Rummerfield said. The district is also exploring the possibility of early retirement incentives, he said. Phillipsburg Education Association President Barbara English said she met Monday morning with Assistant Superintendent Jacqueline Attinello. English was told staff at all levels could be affected but she wasn't given specifics. The association includes teachers, paraprofessionals, security staff, secretaries and maintenance and custodial workers. School officials said the budget will likely change before it is up for public hearing March 25, which is one reason why they aren't releasing further information. "Typically we don't go into a lot of detail at this point," Business Administrator Bill Poch said. The district is expected to receive just a 2 percent increase in state aid next year -- the lowest possible under Gov. Jon Corzine's new school funding plan. Phillipsburg was already $2.2 million in the hole because it appropriated that amount from a previous surplus to cover a shortfall in state funding for the 2007-08 budget. Rummerfield said the state has indicated the district could raise as much as $9.9 million in local taxes. The state feels taxpayers aren't paying enough toward the district, he said. Last year, Phillipsburg received about 70 percent of its $61 million budget from the state. Poch said fixed costs, like utilities and insurance, increased an average of 6 percent. District officials are further along in the budget process than prior years because they are seeking to exceed the state's tax cap. The state prohibits districts from raising taxes more than 4 percent, but there are several exceptions school officials can use to justify exceeding that limit. The district submitted a cap waiver request to the state and Warren County's superintendent of schools on Feb. 19. They sent a letter from Richard Shapiro, an attorney representing Phillipsburg and several of the state's other needy districts, strongly opposing the new funding system along with the request. Requesting a waiver puts the proposed spending plan under scrutiny, meaning it could come back with recommendations or "reallocations" Poch said could be mandatory. Reporter Andrea Eilenberger can be reached at 610-258-7171 or by e-mail at aeilenberger@express-times.com.