Aid Loss Prompts RIH to Cut Budget by $1.8 Million

The regional school board will make spending cuts in a variety of programs and increase the tax levy to make up for the loss of more than $2.1 million in state aid.

The Ramapo Indian Hills Board of Education unanimously voted Monday to accept a $47,810,386 budget for 2010-11 that represents a 1.6 percent reduction from current expenditure levels while coming in at $1.8 million under the initial proposed budget for next year, which was slated to reach $49.5 million.

The 2010-11 plan would spend $800,000 less than currently budgeted, although taxes will rise for the sending districts: Wyckoff, Franklin Lakes and Oakland. Business Administrator Frank Ceurvels said the average township resident, based on assessed home values, would see a $101 tax increase (3.5 percent jump); the average Franklin Lakes taxpayer would absorb a $177 hike (4 percent); and the average Oakland resident's taxes would rise $39 (2 percent). The tax levy to support the 2010-11 plan will be $45,929,029.

After bracing for a possible 15 percent reduction in their aid award, the board was notified last Wednesday afternoon that it would lose its entire aid package, roughly $2.1 million, as part of Gov. Chris Christie's plan to balance the state budget by slashing aid to schools and municipalities, among other austerity measures. The announcement left RIH officials and their counterparts in other districts scrambling, trying to locate funds to complete budgets that were due to the county on Monday.

The board could have achieved an expenditure waiver to apply the entire $2.1 million aid loss toward the tax levy, a prospect that would have represented an average 9 percent tax increase over the three municipalities, which would likely have faced a rough reception at the polls. Instead, the board chose to exceed its state-mandated 4 percent expenditure cap by $300,000, with the balance of the aid loss ($1.8 million) to be made up in spending cuts.

"Taxes are going up 4.64 percent to support a reduced budget," Ceurvels said, noting that the initial proposed 2010-11 plan would have hiked taxes by an average 3.9 percent across the sending districts.

Officials stressed that while the board and administration will have to adhere to the tax levy voted on Monday, the potential cuts are not yet fully decided.

"It's in the formulation stage," Superintendent Dr. C. Lauren Schoen said. "We're trying to reduce (spending) in areas across the board."

"We have to work backwards now," Ceurvels said.

The largest cut could come from capital expenses, as the administration and board have discussed slashing the expenditure by more than $1 million. Doing so will delay projects that are desperately needed, Ceurvels said, citing the need to update items such as windows in both schools, heating systems and necessary infrastructure upgrades.

"These aren't going to get any better, they're not going to go away," he said. "We have to find a way to regroup."

The administration met with department heads late last week to help determine the areas that could be cut with the least impact to district education. Schoen said cuts were identified as possible across the following areas: capital, staff, facilities, school accounts, the university programs, co-curricular activities, athletics and technology.

"We have spent the past few days working with district administrators to develop a budget reduction plan that would minimize the effect on our students' programs while maintaining the quality educational opportunities for our students which parents and community members have become familiar with over the years," Schoen wrote in a letter to parents that went out today.

The cuts, if made, could impact programs and staff equally across both Ramapo and Indian Hills. Schoen said the schools' facility budgets could be slashed in half; student field trips may be eliminated. Various administrative assistants could be switched from full-year jobs to 10-month schedules. The schools' university programs could see less funding, while student clubs with low enrollment could be cut, Schoen said.

The district could spend less on travel expenses for teacher conferences while generally reducing funds available for professional development opportunities. Planned lab science programs could end up being more modest than initially envisioned, and there could be a reduction among technology staff. Additionally, Schoen said the district will look to reduce its special education costs by determining whether more needs can be addressed within the district, saving on tuition costs.

The board and administration also are looking at reducing its athletic costs by eliminating rentals of outside facilities used for some practice sessions.

At the same time, Ceurvels said the district is actively looking for new sources of revenue, mentioning the rental of facilities to outside groups as well as payments from monopole placements on school property.

The budget will be up for a public vote on April 20. Officials warned that the fiscal situation would likely get worse should residents reject the plan, which would spark another round of cuts.

"If this budget goes down, my guess is that there will be severe programmatic consequences," member Ira Belsky said.

"The budget needs to pass... if it doesn't, this is just the beginning," Schoen said.

Residents can hear more about the district's plans and can ask questions at a public hearing scheduled for 7 p.m. March 31 in the Ramapo High School auditorium.