Unfortunately this reduction came after the 2018-2019 School Year Budget was created and passed. As such, no new taxes could be levied, and since the 2018-2019 school year has already begun, there were already programs in motion and contracts already signed that could not be undone.
In addition to the cuts this year, cuts in 2020 are expected to be another $689,000 and in 2021 another $861,000. Through 2024-2025, expected losses in state aid will be around $9 million.
For the current budget year, the recommendation to the School Board from the Finance Committee is to use an emergency reserve for security related projects. State Guidelines allow the use of emergency reserves for security upgrades, and the security projects underway in 5 buildings, along with a few other security projects, total $338,000.
For the remainder of the funds, the Finance Committee is recommending to shift money that would have gone to the 'Capital Reserve' fund. This is money that is put aside every year to pay for future capital building projects. Think of the Capital Reserve fund like this - if you know the roof on your house will need to be replaced in 5 years, you can put money aside every year into your 'Roof Fund'. In 5 years, you won't have to pay it all out of pocket. Without a capital reserve fund, presumably you would need to borrow money to pay for your capital project.
The district will also be filing an appeal with the state for emergency state aid. While they don't expect to receive any, there is no risk in filing.
Superintendent Scavelli then compared the current fiscal situation to 2010, when Governor Christie cut $3.1 million in aid, followed by a cut of $3.6 million in the following year. There will be difficult choices in the future. The work for creating the next budget for 2019-2020 will begin in September, and the district will be contracting again with the strategic planning consultants that they used back in 2010.
Regarding item 5.3 'Reject All Bids of the Parking Lot Project at Evans School', it was explained that the bids received were all well over the amount that was estimated by the architectural consultant that the school uses. All bids will be rejected and the project will be put out for bid again in September when many of the construction firms are not as busy. In addition, the ETSD will be conferring with the Lenape Regional High School District regarding the project, as the LRHSD will be paying half the costs.
It was noted that the Transportation Contract being voted on was 7% higher than expected and 10% higher than last year.
All items were passed with an 8-0 vote (Ms Ryan was not in attendance).
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