School District Braces for Cuts to State Aid Next Year

The Scotch Plains-Fanwood School District is already anticipating a potential loss in state aid for the next school year.

The district received word two weeks ago that it will likely lose $167,667 in aid for the remainder of this year as part of Gov. Chris Christie's plan to slash $475 million in school funding from the state budget. But at the most recent Board of Education meeting, Business Administrator Anthony Del Sordi told the board that the district could potentially lose 10 to 15 percent in aid for the 2010-2011 school year as well.

In the first of several planned budget presentations, Del Sordi said the district is currently planning its 2010-2011 budget under the assumption that it will only receive 90 percent of its usual state aid. If that rings true, the district is anticipating a budget of about $79,374,690.

"That's where the first draft is at this point," Del Sordi said. "If the state aid is reduced by another 5 percent, we'll have to reduce by another $200,000 to be within cap limits."

In speaking to Patch previously about the $167,667 cut in aid to this year's budget, Del Sordi said the reduction is being take from two reserves the district has in the amount of $246,485. The school district had set up those reserves with the hopes of using some of those funds over the summer for capital projects.

"Now we have to re-evaluate our ability to use the funds for that purpose," he said, adding that the district isn't planning to freeze any current projects, but will continue to monitor its financial status over the next couple of months until April.

The district won't have a definite answer on how steep the state aid cuts to next year will be until the governor presents his budget on March 16.

Another potential woe for the district in 2010-2011 is an increase in health claims. Del Sordi said that going off initial information gathered, the district has anticipated an 8 percent increase in health benefits claims. But, based on the expenses they've had through January of this year, he said it may increase as high as 11 to 12 percent.

Del Sordi also focused his first budget presentation on the specifics of special education for the next school year, noting that the district anticipates a budget of $18,238,675, including $853,556 in IDEA funds and $342,200 from the American Recovery and Reinvestment Act (ARRA).

The special education department has seen a gradual rise in enrollment in recent years, with 909 enrolled in 2009-2010, up from 797 in 2008-2009. In 2002-2003 that number sat at about 600.

Board member Anthony Parisi questioned whether the district was anticipating any additional out-of-district students this year, to which Del Sordi replied by saying that the district is estimating an additional two. Del Sordi noted that the state continues to closely monitor students out-of-district.

"Each year it's different," he said. "One of the major impacts is families moving into the community. We never really know what families will move into the district. In general, our estimates are right on target."

In response to a question from Board President Trip Whitehouse about the expense side to the IDEA and ARRA, Del Sordi said that most of the funds in 2010-2011 are going to staff positions that will be eliminated in 2011-2012 if the district does not get additional ARRA funds. The exception he said are subprograms that can be funded through other sources.

"As we continue to get information from Trenton, we'll continue to update the board and the public," Del Sordi said.

The district is expected to give a budget presentation on class size at this Thursday's Board of Education meeting.