2010-2011 School Budget Election Guide

Scotch Plains and Fanwood voters who head to the polls on Tuesday from 2 to 9 p.m. will be asked to vote "yes" or "no" on a $74,967,662 general fund tax levy, which accounts for most of the proposed $80,958,048 budget for the 2010-2011 school year.

As the proposed budget stands, the total tax levy, including debt service (which was previously approved), is $77,311,517. $17,535,304 of that proposed tax levy would be funded by Fanwoodians, equating to an average tax increase of $439. The average is based on an average home value assessment of $84,595 in the borough.

In Scotch Plains, residents would fund $59,776,213 of the proposed tax levy, equating to an average increase of $299. The average is based on an average home value assessment of $122,400.

Scotch Plains would make up 77.32 percent of the total tax levy. Fanwood would cover 22.68 percent of it.

Fanwood's estimated tax increase over last year is 7.18 percent. Scotch Plains' is 4.32 percent.

Why is Fanwood's increase higher than that of Scotch Plains? School officials have emphasized that for the 2010-2011 budget period, the total property valuation in Fanwood increased, while the Scotch Plains valuation decreased. Consequently, the percentage rate charged to Fanwood increased from 22.3 percent to 22.7 percent, while the rate for Scotch Plains decreased from 77.7 percent to 77.3 percent. The state determines these valuations. The property tax calculation is based on these valuations and not on the per-pupil cost for students from Scotch Plains or Fanwood.

What happens if I vote yes for the budget?

If you vote yes, you will be supporting the $74.9 million tax levy and the budget as it has been proposed. If the budget passes by a majority vote in both towns, it will remain as it's been presented.

The school district lost $3.8 million in state aid this year, forcing the Board of Education to quickly make decisions about how to accommodate for that loss in the budget. They have proposed cutting about $1 million of it through 10 layoffs and operational reductions, and have suggested passing another $1 million onto the taxpayers. The remaining $1.2 million gap has yet to be accounted for, but could come from further givebacks in contract negotiations, additional staff layoffs and program reductions.

If you vote yes, the budget will remain intact and the only thing left for the board to determine is where to find that final $1.2 million.

Business Administrator Anthony Del Sordi noted that the district is hoping to get that $1.2 million filled through its ongoing negotiations with the teacher's union. If they can't get that amount entirely from the SPFEA, then the board will look at other line items within the budget. Additional teacher layoffs would be likely, and cuts to middle school and freshman sports and the music program have all been proposed.

Del Sordi noted that the board still has time to make final decisions about where to make that $1.2 million cut and will involve the public in the process as it moves forward.

Voters on Tuesday aren't deciding where the cuts should be made within the budget. They're only deciding whether they approve of the proposed tax levy.

What happens if I vote no?

If a majority of voters in the two towns defeat the school budget, then the Board of Education has 48 hours to get information to the two town councils for review. The councils then have until May 19 to decide on an additional amount to reduce the tax levy by. Such a move would likely mean the board would have to make cuts beyond the $1.2 million it's already anticipating.

The councils can make suggestions as to where those cuts should come within the line items, but the Board of Education does not have to accept those recommendations. The board must accept the new tax levy as set by the town councils, but can still decide on its own what to cut out of the budget to accommodate that loss.

Del Sordi said that some people seem to think that a budget defeat will lead to the teachers settling for less in their contracts, but that that's not necessarily the case.

For every additional $100,000 cut from the budget, Scotch Plains residents would see a tax savings of $5 and Fanwood, $8. If another $1 million was cut from the budget, Del Sordi said that would translate to a $55 savings in Scotch Plains and a $90 savings for Fanwood.

Del Sordi said how much the councils decide to reduce the budget by would likely be influenced by voter turnout.

"If the budget is defeated by one or two votes, that sends one message, rather than if it's defeated by 500," he said.

If both councils can't agree on a new tax levy, then the decision would be passed on to the county superintendent, with some influence possible from the state Department of Education.

How many votes are needed to approve or defeat the budget?

Del Sordi said the budget has to be passed by the majority of voters overall. It's the cumulative total for the two communities that matters. The vote in Scotch Plains is not weighed differently than the one in Fanwood.

How can the Board ask for voters to approve a budget if teacher contract negotiations aren't complete?

Every year the proposed budget either takes into account an exact amount based on a prior settlement or an anticipated amount based on an upcoming settlement. Del Sordi noted that when the Board went into its 2009-2010 budget, they did not have a settlement with the SPFEA. Thus, they projected what they thought would be reasonable to settle at and made projections. Sometimes the district has sufficient money in the budget to accommodate the ultimate settlement, and sometimes it doesn't, Del Sordi said. Adjustments can be made to the budget throughout the year to accommodate whatever is decided.

Del Sordi noted that proposed changes at the state level – including the proposal that teachers contribute 1.5 percent to their health benefits – could help make up for some of that $1.2 million gap in the budget, if approved.

How is the Board of Education able to raise taxes this year above the 4 percent cap?

When the governor cut state aid to districts, one of the provisions was that districts were then given the OK to raise taxes above the 4 percent cap to accommodate for the loss. Because the school district lost $3.8 million in aid, it had the right to raise taxes above 4 percent, and thus ultimately raised the total tax levy by about 5.4 percent. When broken out, of course, that equates to a 4.32 percent increase in Scotch Plains and a 7.18 percent increase in Fanwood. Del Sordi said the state software will automatically adjust SP-F's budget to include that in law.

What is the proposed budget made up of this year?

Salaries - $44,497,186 (55 percent of the budget)

Benefits - $14,028,176 (17 percent)

Student Services (Special Ed/Basic Skills) - $7,979,490 (9.9 percent)

Other (Instructional items, sports & co-curricular activities) - $3,988,213 (4.9 percent)

Custodial/Maintenance - $3,832,595 (4.7 percent)

Transportation - $2,868,394 (3.5 percent)

Grants (Special revenue fund) - $1,420,000 (1.8 percent)

Debt Service - $2,343,994 (2.9 percent)

Total: $80,958,048

Where's the money coming from to pay for this?

Local tax levy (including debt service) - $77,311,517 (95.5 percent)

Surplus funds - $500,139 (0.6 percent)

Miscellaneous - $695,590 (0.9 percent)

State aid $659,090 (0.8 percent)

Federal & Other Programs - $1,791,712 (2.2 percent)

Where has the Board of Education made specific reductions in the budget so far?

To get a full look at which line items had funds reduced, go here. The total budget represents a 0.45 percent decrease over last year.

What else is the ballot asking me to do?

Tuesday's ballot will also ask you to elect new members to the Board of Education.

In Scotch Plains, two 3-year seats are open, and both are being run for by incumbents Nancy Bauer and David Gorbunoff.

In Fanwood, a 1-year open term is being run for by incumbent Rob O'Connor. A 3-year seat is also up for grabs, and is being run for by incumbent Amy Winkler, Michael Lewis and Christopher Pflaum. Click on each of their names to read Patch's profiles of the candidates and their stances. Their names appear here in the order they will appear on the ballot.

What else is there to know?

Here's some other facts for you to consider.

Proposed School Tax Rate Increases Across the Area:

Westfield - 4%

Berkeley Heights - 5.4%

Bernards - 5.19%

Chatham - 7.4%

Fanwood - 7.18%

New Providence - 4.18%

Scotch Plains - 4.32%

Summit - 5%

Per Pupil Spending for 2009-2010 School Year:

Scotch Plains-Fanwood - $11,975

Westfield - $12,009

Cranford - $12,831

State Average - $13,835

Summit - $14,411

Scotch Plains-Fanwood officials have touted their low per-pupil expenditure, which is ranked 18th lowest amongst similar districts in the state, as proof that they've worked hard to keep expenditures low.

Don't know where to vote?

Go here for a list of polling districts. The polls will be open from 2 to 9 p.m. Tuesday. Stay tuned to Patch for the full results after the polls close.

Got other questions?

Voters may e-mail Patch editor Lindsay Wilkes-Edrington at lindsay@patch.com and she will try to answer any additional questions prior to the election. Voters are urged, though, to also call the district's budget hotline at 908-889-9665 and to review all of Patch's previous coverage. Links to all of our stories on school board candidates and the proposed budget are below.

Patch's previous coverage of the 2010-2011 proposed budget and other funding issues:

Budget Supporters Dominate Board of Education Meeting

Park PTA Heads Speak Out at Board Meeting

Seniors Speak Out About School Budget

School Budget: A Breakdown of the Cuts

Pflaum Aspires to Bring Fresh Voice to Board of Education

Winkler Hopes to Extend Service on Board of Education

School Budget Cuts: How Neighboring Towns are Dealing

Board of Education Votes Down Teachers Contract Memorandum

School District Loses $3.8 Million in State Aid

Letters to the editor about the budget:

Resident Urges Yes Vote on School Budget

Maggie Savoca in Response to SPFEA's April 15 Letter

Superintendent Encourages April 20 Vote

BOE President on Results and Spending Comparison of School Districts

From the SPFEA to the Public

Board of Education Candidate Lewis on the Budget

A Word on the School Board Election

Board of Education President Speaks Out About Budget

SPFEA Union President Speaks Out About Teacher Contracts

Park Middle Teacher: An Open Letter to the People of Scotch Plains and Fanwood

PTA Council Supports 2010-2011 School Budget