Howell schools face $5M deficit (APP article)

By Michelle Gladden
HOWELL — The township school board on Wednesday left open the possibility of asking voters to approve spending $5 million to fill a budget deficit.
The board voted 4 to 2 to approve the scheduling of a referendum in which school officials would ask the public to approve a budget beyond the state's budget cap.
Board members said they were not committing to the referendum or the proposed budget increase. "We're only establishing the time frame for this election," Board Vice President Sherry Roses said.
The decision came as officials have discussed closing two of the district's 13 schools. The district will run as much as a $5 million deficit if those schools are not closed, officials have said.
School officials said the action was necessary because of legislation awaiting Senate approval that would move school board elections to November and also do away with voter approval of any budget within the state-mandated 4 percent cap. A referendum would then be needed to approve the extra spending.
"The purpose of this is really as a protective measure more than anything else," Board Attorney Jan L. Wouters said. "A timetable must be provided to the county. If we don't act now, we would not be able to hold a special election."
With a $25,000 price tag for the special election, some board members thought it too high of a cost.
"I find it reprehensible that the state of New Jersey and the Department of Education are holding our hands to the fire when they haven't even voted on this yet," board member Patricia Blood said. "Given the fiscal issues with regard to the decline in our enrollment, state funding and state mandates, I find it difficult to consider spending this money when we are in such fiscally difficult times. I understand the rationale, but we are being caught in a Catch 22."
The special election would mean district officials could also ask voters to approve a second ballot question. That question would be applicable directly to the spending of funds, officials said.
Some 50 parents attended the meeting Wednesday and questioned everything from how the ballot questions would be worded to whether such a tax hike would bring the district back into fiscal balance in the future.
Board officials said earlier in the school year that as many as two of its 13 schools could close in order to balance its budget, but parents have voiced concerns on the effects closing schools would have on the students since it would mean a redistricting of the near 64-square-mile community.
School officials continue to explore which of the 13 schools could close, whether to cut programs and staff. Officials have said a deficit resulted because a one-time pension refund was used to provide tax relief in the 2007-08 school year. Rising costs and contract obligations have contributed as well.
State aid allotments based on a new formula also translated to less help for the district, officials have said.
In order to help weigh options, the district asked parents to voice their opinions at a special meeting in November. Parents proposed some $3 million in cuts, which did not include the closing of a school.
School officials have also said they will seek another $2 million waiver, as granted by the county's Executive Superintendent last year. The waiver allowed the district to ask voters to approve a levy increase, which they did.
Michelle Gladden: (732) 308-7753 or mgladden@app.com