COLD SPRING – Gov. Chris Christie’s freezing of $475 million in aid to 500 school districts could cause layoffs, program reductions and higher property taxes for residents in Cape May County.
On top of that, Christie has also promised 15 percent less state aid for schools next year.
Health insurance costs are rising and teacher contracts contain 3.5 to 4 percent annual raises giving school districts a tough road to plow. State law limits school districts from raising their tax levy more than 4 percent annually.
Christie’s plan is to have school districts use substantial portions of their surplus funds. Schools cannot keep more than 2 percent of their budget in a surplus account. Christie’s cut is equal to anything in a school district’s surplus account above 2 percent.
School districts use surplus to offset property tax increases for residents and as a rainy day fund for emergencies such a roof and furnace repairs.
Christie told North Jersey.com that schools were not immune to the awful circumstances of unemployment and declining tax revenues. While the Governor may have the power to freeze funds, he may need legislative approval to move funds into the general fund to help balance a $2.2 billion budget gap.
State aid being withheld from local districts:
• Lower Cape May Regional High School District= $546,181
• Lower Township Elementary District=$841,818
• Cape May City Elementary School=$147,959
• Avalon= $34,342
• Cape May County Vocational=$440,698
• City of Wildwood Schools=$566,247
• West Wildwood=$2,303
• West Cape May Elementary School=$43,918
• Upper Township=$555,473
• Stone Harbor=$23,244
• Sea Isle City=$70,977
• Ocean City=$650,797
• North Wildwood=$288,169
• Middle Township=$803,605
• Dennis Township=$73,685
• Cape May Point=$10,283
• Avalon=$34,342
• Wildwood Crest=$29,475
• Woodbine=$6,862
Lower Township Elementary Superintendent Joseph Cirrinicione told the Herald said he knows the state is in trouble but the school districts that are losing the most money are districts that are fiscally sound. He said the surplus money is reserved to lower next year’s tax rate.
“We live within our budget, we’ve been zero growth for two years,” he said, referring to no increase in the tax rate for the district.
He said the $814,000 loss in state aid to Lower Township Elementary School District, the largest in the county, has nothing to do with the upcoming school budget but will impact operations in the 2011 budget year.
A penny on Lower Township School District tax rate is equal to $472,000 said Cirrinicione.
“There is going to be a loss in service, something has to give,” he said. “You can’t lose that much money when you only have 2 percent in surplus by law and not have an effect on programs in 2011.”
Cirrinicione said the state is taking money from school districts that have been efficient and have money in the bank.” He said rather than being frugal and banking the money, he should have bought buses and more computers with the money “because now it’s gone.”
“There’s no benefit to the Lower Township School System or taxpayers with the loss of the $841,814,” said Cirrinicione.
He said he did not see how taking money from a local school district and applying it to the state’s $2.2 billion deficit in this fiscal year is helping school districts.
Cirrinicione said the situation was made worse by the proposal to cut aid to schools by 15 percent next year. He compared the situation to the two blizzards the county suffered back to back this winter.
Cape May City Elementary Chief School Administrator Victoria Zelenak told the Herald said the board of education finance committee was meeting to see what affect the cuts will have on future budgets. She said the mood was “doom and gloom” when the cuts were announced at a meeting of county superintendents.
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