Increasing Costs Add Pressure To Chatham School Budget Calculations

CHATHAM, NJ — The Chatham Board of Education's finance committee reported on a number of negative developments that will have an impact on this year's school budget at a recent board meeting.

The local school district has been briefly discussing various options for the past few months in an effort to combat rising inflation costs, including a referendum and potential funding negotiations with the borough following the development of a 259-unit housing project.

Read related: 259-Unit Housing Project, Financial Impacts To Chatham Schools Debated

The finance chair, board member Bradley Smith, laid out what he called a "real bad math problem" in reporting on progress for the new preliminary budget, which will be presented to the public at an upcoming board meeting.

According to Smith, the district is set to lose the state Elementary and Secondary School Emergency Relief funds (ESSER), which Chatham has been using for the school mental health programs, which have been increasingly valuable.

"It's a very difficult math problem that we're up against… It's one of the few businesses, if you look at it as a business, where we can't just raise prices to where they need to be. Everyone sees the impact of inflation," Smith said.

Smith also stated that the finance and facilities committee is looking into receiving a portion of that funding from a ROD grant, which is a state financing grant. Governor Phil Murphy introduced the ROD grant program last year, which allows school districts to receive at least 40 percent of approved eligible project costs.

Peter Daquila, the board's business administrator, recently submitted 14 individual projects for review for potential funding and will provide an update on the status of the funding at a later date.

"It just doesn't work, the math doesn't work. We have a two percent cap and expenses exceeding 10 percent. Something has to give... I want folks to understand the conundrum. The only way to come up with that kind of capital is headcount," Jill Critchley Weber, board president, said.

According to Weber, the school district has already been dealing with dwindling staff numbers, citing a lack of replacements for retired staff members and consolidating supervisory positions. "You hit the low-hanging fruit, and now you're into some real meaty cuts."

During the public comment section of the meeting, resident Stewart Carr stated that the board is not limited to a two percent cap increase for the annual budget.

"Remember there is no two percent cap absolute. There is a two percent cap without asking permission from the taxpayers. If one wants to raise the budget by 30 percent, my understanding is that you can do that, all you have to do is ask," Carr said.

In an update on the district's talks with Chatham Borough about Payment in Lieu of Taxes (PILOT) funds, Weber stated that the district still intends to meet with the borough to discuss the possibility of funds to help offset future costs that the new housing development will cost the school district.

Since it was initially debated at a December board meeting several residents have spoken out against the school district asking for the negotiation of funds from the borough.

"I've got no problem with the board of education asking for money... I think the real issue is, hopefully, take the high road and not ask the municipality for extra money, but rather ask the taxpayers directly for that money," Carr said.