Plan would batter P'burg

Education funding formula could cause $4.5 million shortfall.
Tuesday, December 18, 2007 • By ANDREA EILENBERGER The Express-Times

PHILLIPSBURG | Phillipsburg School District officials fear they'll face a devastating financial future if Gov. Jon S. Corzine's new education formula is approved.

Although they are seeking answers to a series of questions about the plan, district Business Administrator Bill Poch warned board members Monday they might be hit with a roughly $4.5 million to $5 million shortfall next year.

"There are so many uncertainties under the formula," he said.

The district is already looking at a $2.2 million gap because it appropriated that amount from surplus last year. District officials had accepted the state's 3 percent increase in funding rather than appeal for additional money when the state asked for exemption to funding requirements.

Additional costs, such as salary and insurance increases, are going to further widen that gap, Poch said.

Poch said principals and other staff who prepare budgets were advised not to include new positions or other additions, and they could see cuts up to 10 percent.

He said the new formula is unclear in some areas, such as how certain figures were derived and exactly how budgets beyond next year will be affected.

The plan seeks to get rid of the Abbott designation, which Phillipsburg shares with 30 other districts. The state Supreme Court ruled that the Legislature needed to funnel additional money to the 31 poorest districts so they are funded on par with the richest districts.

Phillipsburg is projected to receive a 2 percent increase in aid next year. That increase is the proposed formula's minimum. The school district receives about 70 percent of its $61 million budget from the state.

Poch said he was one of many Abbott officials on a Monday conference call with the Education Law Center. He said the Education Law Center is looking for information showing how the formula could affect the districts.

The Education Law Center has fought for Abbott rights, and Poch said the group doesn't want the Legislature to rush this formula through. It must pass the Legislature before Jan. 8 for the 2009 budget season.

Board President Paul Rummerfield suggested the district document its concerns in letters to area legislators: Assemblyman Michael Doherty, Assemblywoman Marcia Karrow and Sen. Leonard Lance.

Superintendent Gordon Pethick said every Abbott district should have the right to address its special needs.


Reporter Andrea Eilenberger can be reached at 610-258-7171 or by e-mail at aeilenberger@express-times.com.

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