Schools, Village Taking Christie's Budget Changes 'Day By Day'

Many aspects to the 2011-12 budget process are still up in the air, but one thing is certain: Ridgewood Village and its schools will be restricted by a 2 percent cap on year-to-year tax levy increases.

After Gov. Christie signed the 2-percent cap for municipal, school and county budgets Tuesday, the parameters for Village Manager Dr. Ken Gabbert and Superintendent Dr. Daniel Fishbein have become more defined.

"At least we know now what's known, but we also thought that in the past. From what we know now, we can build that into the budget and won't have to cut at the last minute [like this year]," Fishbein said Thursday.

The new cap, brokered by state Senators and the governor last week, has four exemptions: rising health care costs, pension payments, debt service payments and capital expenditures. Any increases beyond the 2 percent will require a referendum vote (or second question in the case of the schools). 

Largely undetermined are the 32 complimentary bills, referred to as the "toolbox," which range in scope from having the county superintendent take on a larger role, allowing municipalities to impose furloughs, and moving election dates, among many others.

Gabbert said it's "unclear" how the new cap will affect the village, "other than to reinforce the austerity that we are anticipating. The key will be the 'toolbox' of some [32] other changes that will allow the village to plan financially for the future."

He did say the 2 percent cap would "greatly reduce services. With the 'toolbox' and continued restructuring of the operations, we will seek to continue the quality services provided to the village residents and our business community."

An aspect talked about specifically is the amount of state aid towns and districts should expert. The village saw a $572,000 cut last year, and Ridgewood schools lost 100 percent of categorical aid.

The district isn't anticipating any money next year.

"Unless revenue goes up a lot in the state, we can only plan for zero aid," Fishbein said.

With the state legislature weeding through proposed bills throughout the summer, he said he's taking it "day-by-day...

"It's a challenge because it comes in waves. Some proposals are only hearsay," he said.

The 2-percent cap isn't hearsay, though, and the village and schools will have to work through it. Reducing increases further could cause future cuts to programming and staff. Fishbein said a lot needed to be determined but hoped for less layoffs next year.

"We're working within cuts for 2010-11. We've been through a lot the past two years," he said.

Gabbert, who started as village manager in November 2009, oversaw the first wave of layoffs this week. He is optimistic about the future.

"It is possible [to have further layoffs]; however, from January 2010 on we have sought to make decisions that will avoid or greatly limit layoffs in 2011," Gabbert said.

One toolbox item proposed by the governor tightens the union negotiation process to prevent unions pushing the budget past the 2 percent cap. Ridgewood schools just finished an administration contract and will work with teachers and secretarial unions when their contracts expire in June 2011. Only White Collar unions will renegotiate in 2011, Gabbert said.

According to Christie, the prime motivation is to provide significant property tax relief to homeowners. Can that be achieved?

Gabbert said the municipal share of property taxes is 25 percent and costs an average resident $300 monthly.

"The cap alone will not, as evidenced by the 4 percent annual cap for the past many years, [reduce taxes]. With the 'toolbox', statutory changes and the exceptions to the cap, there is a chance to stabilize an annual tax increase..." he said.

Fishbein questioned the state's motives.

"I wonder what people see as significant. Is it $100? $1,000? $5,000? The whole idea is that income tax for the state provides property tax relief. I think the state took a huge step back last year in reducing state aid..." Fishbein said. "The money that goes out is not what comes back in."

Just as this year's budget starts, planning for next year begins. Fishbein, who will vacation soon, plans to catch up on some "light" legislative reading in the coming months.