School tax rate to rise 15 in 2006-07 budget
Final figures depend on state aid numbers, school officials caution
BY JAY BODAS
Staff Writer

Residents with a home assessed at the township average would pay an additional $112.50 in school taxes annually according to the Woodbridge Board of Education budget introduced recently.

The board voted unanimously to approve a tentative 2006-07 school budget at a special late Tuesday afternoon meeting last week.

Board members and Schools Superintendent Vincent Smith stressed that the figures were preliminary, since the district still doesn't have final state aid figures.

"I just want to say although I have some concerns with this budget, I vote yes to extend it to the county," said board member Diane Acquisto. "But when we do come to a budget hearing I do have some concerns, and we will address them at a later date. We are just sending it to the commissioner, and I want the public to know that our concerns will be addressed at a later date."

The proposed budget for the 2006-07 year is $168,203,886, up $9,387,417 from last year. The amount to be raised by taxation is $136,947,485, up $5,470,166 from last year. The school tax rate will rise 15 cents, from $4.10 to $4.25 for each $100 of assessed valuation.

The proposed budget has been submitted to the Middlesex County school superintendent for approval, Smith said.

You will have the chance to change this at the final budget adoption," he said. "It is not the finalized budget. Like I said earlier, we don't know if there is going to be state aid at this time. We at least hope that it stays flat, and obviously we hope that it is more, though I don't see that as a rosy picture."

Last year's budget passed by 418 votes, the third year in a row the budget was approved. But before the 2003-04 school year, voters turned down 32 of the previous 33 budgets.

School district officials estimated state aid for this year at $18.2 million, although Gov. Jon Corzine will not announce final numbers until soon after his March 21 budget address, Smith said. Woodbridge taxpayers would fund nearly $137 million of the proposed budget $168 million school budget.

If state aid figures remain the same this year, a homeowner with a home assessed at the township average of $75,000 would pay $3,187.50 in school taxes, compared to $3,075 last year, according to school officials.

The remaining $13 million would come from four sources, including $3.8 in surplus, $4.1 million in funded programs; and $4.4 million in debt service.

Roughly $400,000 will be left in the surplus account, he said.

"Of the remaining $13 million that is left over, $3.8 million comes from surplus," Smith said. "If we didn't use the $3.8 million in surplus, we would have to tack it onto the tax levy."

Debt service refers to the money the school district has to pay back, he said.

"There is some moneys we received 10 to 12 years ago in the form of low-interest loans that were available, which we took advantage of, and we did a lot of work replacing roofs and some boilers. I think we got $7.5 million, and we are still paying that back too," Smith said.

Fixed costs like the Public Employee Retirement System (PERS) jumped 125 percent percent over last year, from $362,288 to $797,224 in the proposed budget.

Health insurance premiums for district employees rose 6.9 percent.

"For health insurance we are looking at an increase of 7 percent, which is very good, given [our] negotiations with Horizon Blue Cross and Blue Shield, but that number is still above 4 percent, which is the state cap."

Gasoline costs jumped 42 percent over the past year. The increases in the cost of gasoline were unexpected, Smith said.

"When this budget was prepared, nobody knew gasoline would escalate to the expenditure that it did," Smith said. "Prices have gone high and come down, but they are still a lot higher than they were a year and a half ago."

Board of Education Vice President Judy Leidner approved of the tentative budget.

"Based on what I've seen with this budget, I want to commend the administration given the limited information they have gotten from the state in regards to state aid,' Leidner said. "I think this might be one of the lowest increases in the state."

This year's budget vote is scheduled for April 18 from 2 to 9 p.m. Voters must be registered by March 28 to vote in the election.

Voters who cannot get to the polls may vote via absentee ballot. Voter registration and absentee ballot applications are available at all township schools, at the school district administration's office on School Street, as well as at Town Hall. They are also available online at www.state.nj.us/lps/elections.

If the school budget is defeated, it goes to the Township Council, which can make recommendations for cuts.

The budget would then go back to the school board, which can decide whether to act on the council recommendations, Smith said.

"If the budget were to be defeated, then by law the town council would have to identify areas they feel can be reduced," Smith said. "Between the BOE and the Town Council, different committees would meet and negotiate a reduction in the tax levy and go from there. The goal would be to reduce the tax levy."

The public hearing on the school budget is slated for 7 p.m. on March 27 at the Avenel Middle School.

In past years, school officials held multiple hearings on the proposed budget, but there isn't enough time this year to do so, Smith said.

"Unfortunately we have a very short time frame," Smith said after the meetings. We are only required by law to have one hearing, and most districts only hold one public hearing. It's just a busy month, and with the time frame I don't know when we can have another one."