District Updates Status of 'Challenging' Budget

The district on Jan. 24, a budget with unprecedented challenges from a lower tax cap and rising costs they cannot escape.

All in all, with a $663,000 shortfall, the largest public school system may see greater changes as complaints of higher taxes, fewer clubs, a lack of substitute teachers in the high school, a reduced staff and higher enrollment levels present current challenges to the district.

The revenues for 2011 were $84.83 million with $86.25 million expected in 2012. Unfortunately, with increases in health care and pension costs, the district's expenditures are $2.07 million more than in 2011. And with a cap that limits the tax levy to 2 percent ($81,323,178), cuts will likely have to be raised and programs and/or staff cut. The district presented in its top-down budget a very early look at a future that could be eleven positions fewer, though officials said these are not by any means guaranteed, and much hinges on the progress of negotiations with teachers unions.

On Monday night, Assistant Superintendent for Business Angelo DeSimone updated the public on budgeted revenues, estimates and projections of "miscellaneous revenue".

Overall, the district is projecting a $5,500 difference in projections and estimates on the miscellaneous side. The biggest challenges, DeSimone told a mostly empty Education Center, is collections from interest (down from a few years ago) along with activity fee collections.

The district budgeted a revenue stream of $216,000 for interest income and has collected $133,000 this year. They expect to clear a $12,000 gain by the end of the school year. But, DeSimone said, that revenue–from the referendum and operating budget–is down from years ago when figures were routinely around a half-million dollars.

While activity fee collections had $200,000 budgeted for the 2010-2011 school year (revenue that carries over), revenue is only at $91,000, leaving an uphill challenge if the district reaches its target. Superintendent Dr. Daniel Fishbein said spring programs are more popular than fall programs, so the revenue stream is expected to improve considerably.

However, the district is receiving very little in revenue from the middle schools. Ben Franklin Middle School has provided just over $10,000 in activity fee revenue, while George Washington is a shade under $6,000.

When asked by a board member, Fishbein said he believes the low figure is in part because the reduction in offerings from the middle schools–victims of budget cuts. He said he'll have to look closer into the matter of activity fee revenue in the middle schools. Fees were increased for the 2010-2011 school year.

The Ridgewood Community School, which has hovered around the break-even point in recent years, is under its projected revenue stream. With $850,000 in revenue budgeted, the district has only collected $339,000. DeSimone and Fishbein however say they expect the Community School to bounce back during the second half of the school's calendar year and break even.

While some revenue streams are down, the district picked up a big boost from "other" revenue. In this case, it's reimbursed money from students being sent out of district. The district had $18,000 budgeted but have already received $74,000.

Administrators will continue to update the public on the ongoing status of the 2011-2012 budget. The district plans to make the document available on its website shortly.