Here's Why NJ Rejected Point Pleasant Boro's Request For $327K

POINT PLEASANT BORO – Point Pleasant Boro School District got no money from the Murphy administration after asking for $327,367 in emergency aid. The state, as a result, gave its reasons in a letter to the district, saying Point Pleasant has a sufficient amount of money to manage its operations.

The Dec. 6 letter from Education Commissioner Lamont O. Repollet said his department conducted a needs assessment, and determined that the district has successfully balanced a budget despite getting a limited amount of state aid.

"Based upon a thorough needs assessment, including review of the district’s application and the elements outlined above, the department determined the district has sufficient resources to fund appropriations in the 2019-2020 school year," the letter said. "Accordingly, the application is denied."

Superintendent Vincent S. Smith has said he wasn't surprised by the determination, saying: "We knew it would be a tough road when we applied."

Echoing the letter, Smith said the district manages its money well and has found ways to make up for shortfalls such as these. That fact, he said, could be why the state didn't feel compelled to give the district more money.

Point Pleasant Boro is one of a number of districts that have gotten aid cuts since the Murphy administration and state Legislature changed the school funding formula last year. The formula brought severe cuts to a number of suburban districts.

Read more: 'Schools Will Have To Close:' NJ Districts Face Trouble Over Cuts

The letter also said:

• Student enrollments have decreased by approximately 11 percent over the 10-year period beginning with 2009. Per pupil costs have increased by 39 percent over that same time.
• The district did not maximize its ability to raise local funds in the 2019-2020 school year and, as a result, has $3,974 available to increase the local general fund tax levy
• The district received approximately $413,516 of extraordinary aid for 2018-2019 and the budget system indicates the district appropriated $300,000.
• The additional $113,516 of general fund revenue for the year ending June 30, 2019 may provide additional surplus that could be used to fund 2019-2020 general fund appropriations.
• The district’s submission of data from its June 30, 2019 Board Secretary’s Report projects additional general fund surplus of approximately $333,096.
• The district has a 3-year history of excess surplus in years 2013-2014, 2015-2016, and 2017-2018, ranging from approximately $97,486 to $315,293 each year, indicating the 2019-2020 appropriations may also be overstated.
• The district has approximately $892,403 budgeted in maintenance reserve and has budgeted approximately $972,637 in required maintenance. The district budgeted a withdrawal of $400,000 in 2019-2020, leaving approximately $492,403 still available in the reserve to fund 2019-2020 appropriations.

The district's application outlines the following reasons to support the request for emergency aid:

• Restore resource rooms: $103,212.
• Restore employee benefits: $77,493.
• Restore multiple disabilities teacher salaries: $69,056.
• Restore child study team salaries: $51,606.
• Restore instructional supplies $20,000.
• Restore home instruction $6,000