$132.42M Preliminary School Budget Approved

The Parsippany Board of Education approved a more than $132 million preliminary spending plan for the 2013-14 school year by a vote of 6-3 at a special budget meeting held Tuesday night at the district administration building on Parsippany Road. Among those voting no was Board President Susy Golderer.

The proposal the school board OK'd is far from its final form. In fact, the plan was different from what Superintendent of Schools LeRoy Seitz presented to the body. 

The superintendent gave the board options to consider: one that would hold any tax levy increase to the state-mandated 2 percent and another that would raise school taxes by 3.34 percent, which would be allowable under law — and would permit the plan, if approved, to avoid having to be OK'd by residents — because the amount over 2 percent would be covered by the district's "banked cap," funds held in reserve to allow the overage. The state limits the permitted tax increase with the banked cap to 3.8 percent.

The 2 percent budget amount was said to be $130,521,738; allowing a 3.34 percent tax levy hike, the total amount would be $132,184,558.

"Everything depends on the size of the budget that this board wants," Seitz explained. "A 2 percent capped budget would mean the board would have to make $1.6 million in cuts from the 3.34 percent capped budget."

Digital tools, media specialists

The budget features he presented were based on the more expensive tax hike. It would maintain all current instructional and co-curricular programs plus in-district professional development opportunities for faculty; keep all current support staff, certified staff, co-curricular positions, reading specialists and school counselors; and more. In addition, it would cover textbook purchases, replace two school buses, fund capital improvements (including $372,500 for an emergency generator at Parsippany High School),  and reinstate five elementary school media specialist positions cut from the district after state aid was slashed three years ago.

The plan also includes state aid in the amount of $4,479,502—the same amount given for 2012-13.

Seitz said the budget was impacted by a number of factors, among them a $52 million decrease in ratables, the reinstatement of five elementary school media specialists (cut from the district after state aid was slashed several years ago), the need for 9.1 new special education staff positions (special needs students formerly taught out of district will be brought in-district to save money over the long term, according to the superintendent), contractual obligations and federal health care reform fees amounting to $290,000.

Also included in the proposed plan is $390,000 for the first of four annual installment lease-purchase payments for iPads and handheld tablets to be used by students in grades 9-12.

This caused President Golderer some concern.

"I don't necessarily see the benefit at this time for us to do that program," she told Seitz. "Is $390,000 the flat fee [for the year], no more costs?"

The superintendent said yes.

"But with the iPads, we have to pay more for apps," she said.

"They come with some apps, and others are minimal," he countered. "Some of the fees are included in online textbooks or are contained in other sections of the budget."

"This year we can afford it, but can we afford it next year?" Golderer asked. "What type of value is there besides us being known as the district that has iPads? What is it going to bring back to the district in terms of numbers or something we can get our hands on?" 

Seitz explained that there is very limited research on the subject, and asserted that modern students do best using digital tools.

"The students we have in school today are not the students [of the past]," he said. "Some know nothing but digital devices. That's how they learn. Today's learner is digital. If you want them to learn as effectively and efficiently as possible, you have to meet them on their terms, and that's digital. That's the reason we're moving toward a digital platform."

He added that after the four years, the district would purchase the iPads outright for $1 each.

The superintendent noted that while school security is a much-discussed issue surrounding the district, the budget contained no money for school resource officers beyond one funded by the township.

"Ideally we'd like to have one in both middle and high schools," he said, noting that the district simply cannot afford more at this time.

Member Fran Orthwein said she would like to see one more SRO, and her colleague James Carifi suggested approaching the township to discuss a shared services agreement for the purpose of securing up to three more. 

Most were open to exploring an arrangement with the town, and Seitz reminded the board that Tuesday was its last opportunity to add anything to the plan.

"After tonight, this preliminary budget can be cut, but you won't be able to add anything to it," he said.

Board members and residents went back and forth on the issue of the media specialists. Some argued that with a tight budget, hiring more school librarians might not be particularly cost-effective. Others pointed to decreases in student achievement and said they correlated to the loss of the media specialists.

Member Gary Martin said he would not vote for any plan that included a tax increase.

"I cannot break my word," he explained, addressing Golderer, who ran on an election ticket with him in 2011. "People voted for me on that one thing. We have to stay flat. We ran on that, Madame President."

Seitz responded.

"For a flat budget, we would have to cut $3.9 million," he said.

Orthwein was more pointed.

"Mr. Martin, what do you want to cut?" she asked. "I expect by our next meeting you will bring a detailed plan of the $3.9 million you want to cut. I can't imagine trying to find $3.9 million."

Golderer said she was concerned about using banked funds to offset the 2 percent cap.

"We got the same amount of state aid we received last year—next year we may not be that fortunate," she said, noting that this would leave only $645,000 in banked funds to offset the 2014-15 budget. "We must be careful about how we're going to do this. We're going to have to make hard choices, not just for today but also what's going to happen next year."

Seitz addressed Martin.

"Your constituents are the students of this district," he said. "Your obligation is to them. How will you feel if after your tenure, student achievement has lagged? We don't want to grow stagnant or go backwards."

Then he addressed the entire board.

"Give yourself the flexibility to do what you need to do, but don't handcuff yourself, or on March 28, what happens might make sequester look like child's play," he warned. "The results will be immediate and they will hit home.

"It will not be a happy time."

Possible budget cuts

The board brainstormed possible cuts and alternate funding mechanisms. Most of the discussion revolved around security and school resource officers.

"We might be able to place [$240,000 for SROs] in and take it out [from other areas of the budget] by the 28th," he suggested. "I don't want to see ourselves backed in a corner."

"Correct, we may find funding in the budget we could shift," said Seitz. "If the town helped with the generator, that would leave about $165,000 for an SRO. You could put $80,000 in tonight and that would cover one high school."

Member Anthony DeIntinis, a former school resource officer, agreed.

"At $80,000 per officer, we're getting a bargain," he said. "How much are the lives of our children worth?"

Anthony Mancuso mentioned the .

"We provide service to 7,200 people and we are the largest user of water and sewer," he said. "Let's challenge the council to step up and reduce our water and sewer bill. Our customers, students, are all Parsippany residents."

"He makes a good point," said Michael Strumolo. "If they're going to forgive a debt, it should be one to benefit our children."

Strumolo and Mancuso are rarely in agreement, and the exchange caused some in the audience to do a double take. 

Golderer assigned the task of exploring those avenues to the BOE Shared Services Committee and Seitz.

Finally, the revised preliminary budget—at a total of $132,424,558; see the numbers here—went to a vote. Six members approved the plan—Carifi, Martin and Golderer voted no.

"Every time it is said that 'it's just a vote, we can go down,' we never go down," the president explained. "I will never vote for that type of raise."

The preliminary budget—the banked cap plan plus $240,000 for SROs—would push the tax increase to 3.9 percent if the board doesn't find cuts to offset the expense by March 28. Should that occur, voters would get the final say on the plan. The members made it clear that they intend to keep the final total near 3.34 percent, which would mean an increase of about $209 for the average homeowner.

The school board next meets at the administration building Thursday, March 14, at 7 p.m., when it is expected that budget talks will continue.