District Chooses Capital Projects Over Returning State Aid to Taxpayers

Amid fear it could lose the very state aid money just doled out last week by the Christie administration, the school board elected to use the new $850,000 infusion toward constructing a new roof at The Glen School over the objections of Board President Michele Lenhard, who wanted the money returned to taxpayers for relief.

"I don't believe it's been this board's fault local property taxes are where they're at," Lenhard said in voicing her objection Monday night. "Nevertheless, because of the lack of support we've received over the years, I really think local taxpayers are feeling the pinch."

Other members felt differently, with several saying that with the state's give-and-take act — before and then — not spending the cash was too high stakes a poker game, and the district should take advantage of any state aid it receives, especially when bids are favorable. 

Superintendent Dr. Daniel Fishbein on Monday night outlined four options the board could choose, ranging from returning the latest $849,426 to taxpayers this year, to spending the money on capital projects, to holding the money for future years. The latter alternative was dismissed given the board's sentiment that the state could come back looking for the cash.

With what they believe to be important capital projects needing be completed, members Christina Krauss, Bob Hutton, Charlie Reilly and Sheila Brogan voted to approve a resolution that would set aside the state aid money to replace the roof on the while allowing the board to spend the rest of the unused funds as it sees fit upon completion, likely to be a repair to the damaged footbridge by the high school.

"If you give back money [to taxpayers] this year, you'd be asking for it this year and the following year...to try to fund those projects that aren't going to get done," Brogan said, arguing that the capital budget has been "decimated" and work still needs to be done, ranging from large projects to small-but-important items like painting walls.

"Our community has said to us–I think clearly–that there is a need to do work in our buildings to keep them functioning and safe and in good repair," she said

While the Glen School roof replacement, work done on part of B.F.'s roof, and repairs to the the RHS bridge were among the three capital projects favored by the district, "Most likely...one of the two roofs and the bridge would be more feasible," Fishbein said.

The Glen School, which brings in rent revenue to the district but has seen little work done in decades, was deemed to have greater roofing replacement needs than B.F. The district has in the past expressed mild interest in of the high school. Solar panels will be added to the Glen School's roof, resulting in "even greater" tax savings to residents, Fishbein said.

Providing something of a counterpoint to Lenhard, Reilly said the board "has done a very good job in keeping the tax rate down" in 2011-2012, which saw the lowest increase in tax increases nearly 25 years but nevertheless . "I feel this additional funding should be used to maintain the integrity of the buildings," he said.

Reilly further argued that returning the money to taxpayers would tighten the 2 percent tax levy cap restrictions even further, making budgeting more difficult in 2012-2013. "We'd be losing money," he said, an especially hard thing to do with mandated costs in special education and health care that increase with each passing calendar.

Although Lenhard "understood other members' concerns" and agreed that district's "needs are huge," the residents too need help, she said.

"I understand the implications to the budget and I'm not happy about that in terms of our budgeting ability to move forward, but I do think that at this point in time we have to listen to the voters who we're hearing from regularly and consider that option," she said.

If the district were to have returned money to taxpayers, it would have had to have sent new tax issuings on Tuesday, Assistant Superintendent of Business Angelo DeSimone said, leaving little time for the board to decide. The capital allocation option requires the district complete its total budget and have it sent by the end of the month, he added. 

The work on Glen School doesn't need to be completed for 2011-2012, but the bid does have to be completed by then, DeSimone said. Bids must still be put out in a request for proposals (RFP) but once a bid is formalized, the state would not be able to take the money back.

Although the district's architect recently saw the RHS footbridge, it did not take a comprehensive look at all structural aspects and Fishbein cautioned that although the cost may not be great, "it's a long process" because the DEP gives the final stamp of approval.

In an engineering report done two years ago, the bridge work was estimated to cost $150,000. Using the latest state aid infusion for recurring costs (like employee salaries) is not a consideration, board members said Monday night.