Board of Ed Approves Budget, Ready For Public Vote

The Hoboken Board of Education approved the 2011-2012 in a 7-1 vote on Tuesday night. The budget will now be voted on by the public during the school board elections on April 27.

But, no matter if the public votes to approve the budget, the tax levy cannot get any lower than it currently is, explained School Business Administrator Robert Davis. Hoboken is a "minimum tax levy district." Currently, Hoboken is at the lowest possible tax rate.

"It is what it is and it will be that number," Davis said.

The Hoboken district has to follow the state's orders, by drafting a so-called "adequacy budget," which determines the level of spending needed to properly operate a district. It also decides how much spending is needed for particular programs, and what the appropriate per pupil cost is.

Board member Maureen Sullivan voted against the budget, saying "we should send a message to Trenton that this is just wrong." Board member Carmelo Garcia was absent.

But despite the limitations and cuts from the state—which Board member Leon Gold called "not benign"—there will be no layoffs in Hoboken and no programs will be cut for the coming school year. For the coming year, $200,000 has been allocated to buy 110 new laptops and to create the position of a computer technology teacher.

In the coming year, Davis said, it's expected that 12 people will retire, which will save the district at least $50,000 in salary plus benefit payments per retiree. 

The biggest change since the last budget, Davis said, is the money that's going to the city's charter schools.

Since last year, the Hoboken traditional public schools have lost $1.243 million, Davis said, which has been re-allocated to the charter schools. The money follows the students who have left the traditional public schools and have enrolled in charter schools.

There are currently 546 students in Hoboken's three charter schools. Charter schools in Hoboken saw a 55 percent increase over the last year or 193 students, Davis said. The traditional public schools saw their student body go down with 194 fewer students.

The past year was the first year that has been open, explaining the large increase in charter school enrollment.

Charter schools receive public funding, but are privately run. Since HoLa will be adding grades to the school, it's expected that more students will transfer, reallocating more money to that school in the coming years.

In the meantime, Davis explained, the cost of labor and programs in the traditional public schools remain the same, which will make funding programs harder in the future. For now, Davis said, the district will be able to maintain all programs.

"We have to look at this issue down the road," Superintendent of Schools Mark Toback said. In the future, Toback said, "there may be some other efficiencies."

The budget also includes a $909,000 decrease in personnel cost due to 20 retirements and the elimination of six positions, as well as a $363,000 reduction in health care costs. Hoboken lost $147,000 in federal grant money.

Hoboken also lost $669,000 in state aid during the 2009-2010 year, explained Davis. Instead of the aid, Davis said, the district was told to use surplus funds to pay for the district's operations. State aid makes up about 29 percent of the district's revenue, while about 61 percent of the revenue comes from the municipal taxpayers, Davis said.

Board member Irene Sobolov said this budget enables the board to "talk about capital improvements."

The rest of the board also seemed to be happy with the budget. "All in all it's an exciting budget," said Ruth McAllister, adding "I think we’re all confident we can have more cost savings."