Part of budgeting would also normally include allocating a portion of any remaining funds to the “capital reserve” fund to support future capital improvements (infrastructure, systems, fields). The state has taken .5M of Middletown’s accumulated capital reserves.
With the state taking the tax relief and reserves, the District has to rely on “real tax dollars” from this year, as well as pulling remaining capital reserve. Keep in mind that the State often imposes mandates on Districts without funding them. What this means is when the state says “you must have full-day kindergarten,” and there are specific regulations as to the physical structure of a kindergarten classroom, a district must fund that out of somewhere.
VERY IMPORTANT TO NOTE: 84% of the funds that the Governor authorized to withhold from Middletown are local taxpayer dollars. Senator J. Kyrillos, at the Middletown BOE Forum last week, admitted he had no idea the funds that were taken were predominantly funded by local taxpayer dollars. It appears he assumed that the funds were 100% state aid dollars held in reserve and therefore the state was still funding the approved budget by withholding committed funds and saying “keep the funds you already have from us.” For the 2009-2010 school budget year Middletown was supposed to receive only 16% in state aid (versus 41% average across the state). The checks have now stopped, and Middletown has been directed to use our $2.3 million tax relief and $.5 million capital reserves to cover the state’s shortfall. IF THE STATE IS WITHDRAWING STATE AID, THEY SHOULD ONLY BE TAKING 16% of $2.8 MILLION, NOT ALL OF IT. 84% OF THAT IS MIDDLETOWN DOLLARS RAISED FOR MIDDLETOWN CHILDREN!!
WE PAID OUR STATE TAXES. WE PAID OUR LOCAL TAXES SPECIFICALLY FOR MIDDLETOWN. NOW OUR STATE TAXES ARE GONE, SO OUR STATE AID IS GONE, AND THEY WANT OUR LOCAL REAL ESTATE TAXES TO SUPPORT THE ENTIRE STATE!
So where does Middletown stand right now? Based on the funding the state has withdrawn, and assuming that the state aid of 16% from last year is not reduced (highly unlikely), and also assuming that the Middletown taxpayers vote to pass the current budget on April 20th, we can expect to lose 36 teachers (in addition to 28 other positions ranging from Administration to Facilities). That is the “best case scenario” as we stand right now. If the Middletown voters vote to not pass the budget, the budget is presented to the township committee who can vote to cut the budget further, resulting in even more cuts.
The worst-case scenario is that the state follows through on a full 15% cut to Middletown’s current funding, which would result in a potential loss of over 80 teachers, additional positions, and program cuts! If the Middletown voters will not pass even that budget, additional positions and programs will have to be cut to make up for a potential township cut.
Think about the impact of 80+ families in Middletown and the surrounding areas losing their income. This is not an issue just affecting Middletown; this situation is happening across over 600 districts in this state. Lost jobs equals loss of income tax and sales tax to the state. Lost jobs equals unemployment, and the state has said the unemployment system is bankrupt. Lost jobs equals loss of property tax when families leave NJ for a cheaper place to live.
The Middletown Budget Awareness Committee, Inc.
BOE forum presentation and spread sheets @ http://www.middletownk12.org/superintendent/files/FINAL%20Presentation%20without%20NOTES.pdf.
The text of the speech given by President Laura Agin of the Middletown Board of Education @ http://www.dollarsandsense.bz/.