School District Officials Wait to Formulate Specific Budget Numbers

The School District of the Chathams' budget process is in its early stages, but school officials said at a Board of Education meeting last night the state's dire financial situation could make the process more challenging than it has been in previous years.

The district uses a specific model to project costs for the upcoming year. But board member and finance committee member Jonathan Chatinover said the district is still waiting on information from the state before it can really sit down and put together some hard budget numbers.

As of now, New Jersey school districts are allowed to keep 2 percent of their current budget as reserve fund balance that can be used for any purpose. If a district has more than that 2 percent left over at the end of the year, it could use it to reduce the local property taxes it charges residents. In the past, that is what the district has done.

But this year, things may be different. Business Administrator Ralph Goodwin said the state may force school districts who have more than that 2 percent available to contribute it directly to New Jersey's yawning budget gap.

Goodwin said the state is trying to find a way to "steal" that property tax relief from taxpayers.

"The state is saying, 'No, you're going to use it to reduce our deficit,'" Goodwin said.

Such requirements could result in higher property taxes than residents otherwise would have seen. But essentially, board members said, the district's does not quite know what decisions Gov.-elect Chris Christie will make once he steps in to office Jan. 19.

Chatinover, who reports from the board's finance committee to the full board, said the committee has discussed potentially admitting special education students from outside the district into the district's schools.

Because such students must pay to attend a Chatham school, such a move would increase the district's financial coffers. But there are several moving factors that could affect final budget numbers, including Christie's upcoming decisions, and board members said they are not ready to hash out a line-by-line, itemized budget.

"We really just don't have enough good information to go forward," Chatinover said.

Board members also discussed the possibility of seeking public input on the budget process even earlier on in the year than they now do, and members generally approved of the idea.

"The sooner we get it out there, the more the debate ensues," Board President Roger Rogalin said. "Having that dialogue with the public is very, very helpful."

The district will host what are essentially interactive budget workshops on Feb. 22 and March 22. On those days, residents will have the opportunity to discuss the budget with district officials and board members.

The district's budget vote will take place April 20.