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This year, districts are forced to wrestle with the state's 3 percent cap on their budgets

Tuesday, September 12, 2006 • BY JOHN MOONEY AND KASI ADDISON • Star-Ledger Staff

Camden schools have sent out more than 500 notices to every employee hired in the last two years telling them their jobs may be on the line.

The East Orange school district has talked about eliminating nearly 300 positions, and New Brunswick has notified 100 employees about possible layoffs.

There is no such uncertainty in Neptune: 30 people were told this month that they won't be coming back, including 10 teachers and 10 classroom aides, officials said.

As the state's own fiscal crisis has deepened in recent years, the talk of grave cuts in the poorest urban districts -- which receive heavy state subsidies ordered by the state Supreme Court -- is almost a perennial event, setting off an annual war of words, often a call to attorneys.

But even as the Abbotts received a promise of a minimal increase in aid of 3 percent for next year, the talk this spring is far more widespread. It's not in all the so-called Abbott districts, but as the state reviews budgets leading up to a May 31 deadline, the threats are more severe in many districts.

East Orange sent notices to 287 employees as part of an attempt to trim $30.9 million from the district's $185.9 million budget, in anticipation of the state possibly refusing additional aid, said Superintendent Clarence Hoover III. They include teachers, assistant principals and administrative assistants.

Unless the state approves additional funds above the 3 percent, he said, the adult evening school also will be closed, bus routes eliminated, and field trips cut back. "Every area of this operation has been impacted," Hoover said. "I don't play games, especially with people's lives. This is what we have to do to balance the budget, this is what I have to do."

State officials stress the budgets are under review, and point out the so-called "reduction-in-force" notices have been sent out in years past, only to be rescinded once funds are found. Even so, they said any reductions should not directly affect classroom instructions, citing mandates under the Abbott rulings regarding maximum class sizes and support services.

"We are not going to put any district in a position that would hurt that," said state education Commissioner Lucille Davy.

An additional $78 million was recently added to the state's estimates for Abbott districts next year, although that also includes money for districts opening new schools, officials said.

But in keeping with the Corzine administration's get-tough stance with the Abbotts last year, Davy didn't voice too much sympathy. She said many of these districts already spend more than $15,000-a-student annually and are seeing the same aid increases as every other district in the state.

"This is a reality check," Davy said. "There is a property tax furor at a high pitch in this state, and folks are focused on developing a new funding formula. The blank checks (to the Abbotts) won't be possible any more."

Not all Abbott districts are crying poverty. Long Branch schools have submitted a budget that calls for a 3-percent increase, which includes a small local tax increase ordered by the state, said Superintendent Joseph Ferraina. He said there may be some staff tweaking, but overall the programs remain intact.

"I don't know the conditions of other districts, but I can say we will continue to meet the needs of the children," Ferraina said.

When asked how Long Branch survives when others claim to be in crisis, Ferraina said his district has benefited, for instance, from a teachers contract that helped keep down insurance costs through a new health care plan.

"One size does not fit all," he said. "How many more years can we do this? We will keep trying."

Phillipsburg also is living with a 3-percent increase, not making cuts but scratching to find about $6.5 million in savings through what its business administrator called a "a lot of leaps of faith" with its health insurance and spending down a surplus that he hopes won't be needed in an emergency.

"We spent the surplus down to about $350,000, which is less than half a percent," said William Poch, the business administrator. "We also have a (teachers) contract that's up this year, and while I put an amount in the budget, who knows."

Some districts are issuing warnings about the future, even as they tighten their belts.

In Newark, the state's largest district, 346 positions have been eliminated, although no teaching jobs, said Ronald Lee, the district's business administrator. Equaling the cuts to about $15.8 million in salary and benefits, he said the reductions will come from retirements and attrition.

"This year we had to do a juggling act because of the 3-percent increase," Lee said. "But next year, if we don't get additional revenue, there could possibly be layoffs. We have our fingers in the levee, and it's breaking.

Elizabeth is asking for $24.5 million more in state aid, about $17 million above what the state would allow. If the request is denied, it could mean deep cuts, said local officials. The district is struggling to meet the state's voluminous requirements to justify such requests.

"We first submitted four boxes of data for it," said Harold Kennedy, the business administrator. "We had to list every field trip taken for the last four years. ... And we just sent in another three boxes. I'm not sure they will ever be satisfied."

Elizabeth also is among eight districts under scrutiny for current spending. Each voucher for the rest of the school year must have state approval.

One item already rejected and now under appeal is $6,000 toward Project Graduation activities the night following the high school's commencement next month, Kennedy said. The state only approved money for food.

"We can't just have them sitting around eating all night," Kennedy said. "It's a game, and it's tiring. It just seems the ultimate goal is to beat us down."

Abbotts' spring dance has a new twist

Abbotts' spring dance has a new twist

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