Tax Hike Stays Under Cap Despite Rising Costs

The tax levy increase for the 2013-14  school budget will stay well under the two percent cap, despite growing enrollment and sharply increasing health care costs.

William Albert, Jr., the business administrator for the Hanover Park Regional High School District, presented the proposed budget for the 2013-14 school year Wednesday with a 1.81 percent tax levy increase, despite a 3.02 percent increase in expenses.

The full amount of money to be raised by taxes in the 2013-14 school year is $26,892,947, only a little over half a million dollars more than the $26,365,634 raised in the 2012-13 school year.

"This budget is very, very, very tight," Superintendent Carol Grossi said, but she commended Albert for providing a responsible budget which provides for necessities and does not exceed the two percent cap or dip into banked cap from past years.

"I know a lot of other school districts, including several in Morris County, are starting to use their banked cap," Albert said.

Currently the district has about $2 million in banked cap, which they can use to help cover costs in future years. Banked cap must be used within three years.

The impact is 4 cents per $100 of assessed value in East Hanover, 7 cents per $100 in Florham Park and 9 cents per $100 of assessed value in Hanover.

An estimated increase is included below:

Challenges

Albert said he did everything possible to stay under the cap, despite the following challenges:

• decreasing ratables in Florham Park and Hanover,
• a "rather precipitous incline" in student enrollment,
• a decrease in the equalized value of all three towns in the district,
• state aid less than half what it was four years ago,
• and increased costs for medical benefits, insurance, special education, books and supplies.

State aid was eliminated completely in 2010 and is still more than $800,000 less than it was in 2009. Additionally, Albert said the state charges a fee for the aid, lowering the net amount. A table showing state aid to the Hanover Park Regional High School District over the years is below.

Despite these impacts on the revenue, Albert said the budget includes key staffing increases, including a new teacher and behaviorist for the autistic program, new history and language arts teachers, a new vice principal for athletics. 

It also provies for the purchase of laptop computers, iPad carts and musical instruments and new teacher evaluation software, and for the shift to full-day seniors.

The budget also includes funds for facility enhancements, including new buses, energy efficient lighting in certain areas, guard rails and a new roof for the cafeteria at Whippany Park High School.

Albert already has his mind on next year's budget as well. He said advertising on school buses might be a way to help keep projected costs down next year, and the district may begin to see a larger impact to health insurance due to state-mandated increases in teacher contributions.

What's Next

The budget is currently only proposed. It now gets sent to the county executive superintenent, who has line-item veto power over anything in the budget. A public hearing is set for the March 27 Hanover Park Board of Education meeting before a final vote by the board.