School Board Exploring Cuts to Music, Sports to Make Up for Budget Gap

The Scotch Plains-Fanwood School District is considering cuts to middle school and ninth grade sports and the music program to help fill the $1.2 million gap in the 2010-2011 budget.

At the public hearing on the budget Wednesday night, Business Administrator Anthony Del Sordi said the district may make cuts to those two programs, in addition to laying off more teachers, if it cannot find other avenues to reduce the budget by $1.2 million, which is necessary to address the district's loss of $3.8 million in state aid.

The district has already proposed making up for $1 million of that state aid loss through a tax levy increase, raising taxes on average by $299 in Scotch Plains and $439 in Fanwood. About another $1 million will be realized through 10 layoffs (two administrators, three teachers, one child study team member and four secretaries) as well as reductions in summer salaries, contracted services, maintenance, supplies, equipment and construction.

Where the final $1.2 million will come from is the only question that hasn't been answered in the budget.

Del Sordi said the district expects the final $1.2 million to be realized through salary and benefit adjustments, reductions in staffing, or some combination of the two pending a negotiation settlement between the board and the teacher's union, and emerging state regulations.

But with negotiations still pending with the Scotch Plains-Fanwood Education Association now that the Board of Education has voted down its memorandum, the district has yet to determine how much of the money needed can be realized through a new settlement.

If the district were to reduce the budget by $1.2 million by just laying off staff, it would equate to a loss of about 25 teachers. Superintendent Margaret Hayes assured the public Wednesday night that the district is actively exploring other outlets for reducing expenditures, other than just layoffs, including the reductions to the sports and music programs.

"It's not something we want to do, but if we have to, it may happen," Hayes said. "As superintendent I have to look at judiciously across all areas of the budget, so each area has to absorb some part of that problem."

The public turnout at the budget hearing was significantly less than it was at the district's special March 22 meeting, which packed the cafeteria of Evergreen Elementary, but the emotions were just as impassioned.

Parents in attendance commended the board for voting down the proposed teachers' contract, which, agreed upon prior to the loss in state aid, included a 3.9 percent increase for union salaries in 2009-2010 and a 3.5 percent increase for 2010-2011; all employees contributing $250 toward their health care premium; the elimination of the Etna HMO health care option; additional lunchtime supervision; and a reduction of daytime teacher conferences to three days from four.

Stil, several parents said even more needs to be done to realize savings and ease the burden on taxpayers. They also raised serious concerns that the programs and extracurriculars that enhance the school experience could be reduced.

"Those numbers are irresponsible to the non-teaching public," said Scotch Plains dad David Bernstein. "It's time to bring the public into the process. Let us know what's being negotiated and what's being given back. I think our teachers are great, but if we can't manage a $1.2 million gap and potentially cut music, other electives and sports — I moved here because of the schools, and when you start taking that stuff away, I have no reason to stay."

As it stands, the tax levy in the 2010-2011 budget is $77,311,517 (including debt service), which equates to 95 percent of the district's total revenue. That's a 7 percent increase from what taxpayers paid last year.

"The issue we're having is that it's less of a spending issue driving the tax increase; it's a revenue issue," Board President Trip Whitehouse said, pointing out that the district's spending will actually drop by $369,989 next school year. "A big chunk of our revenue went away when the state reduced its aid."

Some of the parents in attendance said they understood the board was fighting a hard battle, but that with today's tough economy hurting everyone, they wouldn't agree to vote for anything more than a zero percent tax increase over last year.

"I know you've cut costs over the past four years. I know you've done a wonderful job. But we just cannot as a public absorb a 7 percent tax increase," said Fanwood dad Henry Lubinski. "There has to be additional cuts. As presented, this has to be voted down."

One resident questioned the potential impact of a recent announcement by Gov. Chris Christie that additional state aid will flow to districts whose teachers agree to a wage freeze.

Del Sordi stated that for every $1 million in savings, the district would receive about $75,000, which is computed based on the pension and social security savings the state would save and reimburse to the district.

The district is also still waiting to see how new legislation could impact negotiations and savings, including the governor's call for public employees to contribute 1.5 percent of their salary to health benefits.

While these changes could lessen the financial burden on the district, Superintendent Hayes noted that planning a budget with this level of uncertainty hasn't been easy.

"They're rolling out changes even as we put our budget together," she said. "It's tantamount to changing the tire on a car as it's rolling down the road. It doesn't make for good, sound fiscal planning."

One father called for wages to be freezed across the board, and even asked the superintendent if she'd be willing to take a hit to her salary.

Hayes said she would in fact agree to a wage freeze, but that she couldn't speak for the other administrators in the district, who are also currently undergoing contract negotiations.

Several parents in attendance called for more drastic measures for reaching the desired zero percent tax increase, including refusing to provide some of the services mandated by the state, like transportation and tuition for the magnet school.

"Can't we have a sign-up sheet?" Doreen Binkiewicz suggested for the school's busing service.

Del Sordi said the district is actively working to realize potential savings in that service and the other mandated requirements.

Other parents called for ending negotiations with the union altogether.

"If we get sued for unfair labor practices, so be it," Scotch Plains father David Bernstein said. "You'd have a lot of people here supporting you."

Del Sordi said the board's negotiating team is slated to meet with the teachers' union next week to continue discussions. The two parties are now in the final phase- super conciliation – but Del Sordi said even if they don't reach an agreement by the April 20 public vote on the budget, there is some flexibility to deal with that shortcoming. The business administrator noted that the district will really be honing the budget all the way up to the start of the next school year.

"We are stewards to the taxpayers, but we are also tasked with delivering an education for the students in the district," said Board President Whitehouse about the challenge the district faces in creating a budget that fairly spreads the costs to all parties.

Whitehouse said that the board understood the public's concern about another tax increase, but that to suggest there be no increase at all could mean the district would have to cut upwards of 80 additional teachers to make up for the shortfall.

"To suggest a zero tax impact – we get it," he said. "But I'm not prepared to gut this district to come up with another $3.8 million."

Del Sordi noted during his budget presentation that even if the budget is defeated at the April 20 public vote, it doesn't mean taxes won't go up.

"What it means is that control shifts from the Board of Education to the two town councils to determine further reductions in spending," he said. "While any further reductions may reflect small savings to taxpayers, it could lead to additional layoffs and reductions in programs for the district."

Del Sordi noted for every additional $100,000 cut from the budget – the equivalent of two teaching positions – the average taxpayer in Scotch Plains would only realize about $5 in savings. In Fanwood, that would be $8.

The board will continue to present the budget to the public through a series of meetings across the two towns over the coming weeks. To view those dates and locations, go here.