Governor's reforms tighten school budgets Some districts see tax relief, others layoffs Wednesday, April 09, 2008 • BY JOHN MOONEY • Star-Ledger Staff As school budgets go before voters April 15, the state's effort to reform school funding is clearly having an impact --from tax relief in some places to threats of teacher layoffs in others. Gov. Jon Corzine and the Legislature recently boosted school aid overall by more than $600 million, limited spending and imposed a 4 percent cap on tax increases. The goal, say state officials, is to more evenly distribute nearly $8 billion in aid based on amounts it deems "adequate" for every district, with extra weight given to low-income and immigrant students. Corzine said tax relief was key to his initiative. "I would think you would at least see a slower rate of (tax) increases," Corzine said this weekend after a cordial meeting in South Brunswick with school board leaders. "I doubt you would see significant (tax) cuts, but it should reduce the pressures." That appears to be happening in many towns, with scores of budgets falling below the 4 percent limit, school leaders say. In Somerset County, the average increase will only be about 2 percent, according to a Star-Ledger analysis. In Middlesex, the overall levy is rising just under 3 percent. South Brunswick, for example, would see its smallest school tax increase in almost a decade, thanks to a $4 million bump in state aid. Hillsborough's school taxes would go up less than $100 for the typical taxpayer, and there are a few districts that actually may see their school taxes drop. But the limits have come with a price. In Mount Olive and West Orange, towns that were supposed to be winners under the new school funding law, there is talk about deep cuts. West Orange may have to lay off two dozen teachers because of restrictions on how they can spend the additional money, officials said. "It was supposed to be a good year for us, but with everything else, we're still limited from doing what we think our kids should be entitled to," Superintendent Jerry Tarnoff said. At Corzine's meeting in South Brunswick with about 100 school board members from across the state, the mood was largely upbeat, with officials giving the governor a standing ovation. A Burlington County official said he just voted for his first school budget in a decade with an actual tax cut. South Brunswick's superintendent, Gary McCartney, praised Corzine for his "courage" to provide more aid for education at a time when the state's financial cri sis was forcing cuts elsewhere. "This is coming at a good time for everyone here, I would think," said South Brunswick board member Barry Nathanson. Still, the good cheer is hardly universal. Some at the South Brunswick meeting openly questioned the administration's definition of "adequate" funding, saying it undercuts what many successful districts have done. An independent analysis by the state's Office of Legislative Services found 60 percent of all districts exceed the state's models for "adequacy," with about 80 percent of wealthy districts doing so. Urban districts -- which under a Supreme Court mandate were the beneficiaries of hundreds of millions in additional state aid -- argue they have been among the hardest hit by the new funding plan. Orange schools are among those proposing a 4 percent tax increase on residents and also the elimination of nearly two dozen positions, more than half of them teachers. "It's a harbinger of things to come for Abbott districts," said Nathan Parker, the Orange superintendent. "It's an unwinding of some significant programs that have brought some significant progress." More than 60 districts statewide did seek waivers from the state to raise taxes above the new 4 percent cap. The state wound up approving about half the requests, but officials also took the unprecedented step of recommending changes and putting districts on notice that in years ahead they will order them. Flemington, for example, was told to cut back on equipment purchases by $46,000. "This was a district overspend ing in operations and maintenance, and we reduced it by that," said Joan Saylor, who oversees the state Department of Education's budget reviews. She said districts seeking waivers would find their entire budget "open for inspection." A new state requirement mandating a 60 percent plurality on separate ballot questions for extras -- everything from security guards to classroom teachers -- also seems to have had an impact. Just 28 districts have gone to voters with them, down from more than 70 in each of the last few years. Kevin Ciak, president of the state's school boards association, noted that no other public question in New Jersey requires such a "super-majority" vote. "The requirement could stand in the way of communities' ability to raise their own funds for needed school programs," he said. John Mooney may be reached at jmooney@starledger.com or (973) 392-1548. © 2008 The Star-Ledger. Used by NJ.com with permission.