EDUCATION CENTER 49 COTTAGE PLACE RIDGEWOOD NJ 07451
http://www.ridgewood.k12.nj.us/
The Ridgewood News
Superintendent’s Corner
February 2009
by
Daniel Fishbein, Ed.D.
Minding the Budget Gap: Belt-Tightening and the Ridgewood
Public School Budget
No doubt you have heard that the Ridgewood Public Schools has projected a $2.5
million budget gap for the 2009/2010 school year. Since New Jersey statutory
regulations impose strict limits on the preparation, management and growth of public
school budgets, closing the budget gap can only be done by cutting projected expenses.
Approximately 80% of our budget is salary and benefits, so in order to close that gap we
must evaluate every line in our budget and attempt to make cuts in areas that have a
minimum impact on our classrooms. By law our budget can only increase at 4% of the
previous year’s tax levy or approximately 3.6% of our total budget for the previous year.
The following are answers to some frequently asked questions about the school
budget.
The Budget Gap
Q: Why will there be a gap in the 2009-2010 budget?
A: State law requires that every year districts use any fund balance (surplus) in excess of
2% of the total budget for tax relief during the next fiscal year. Over the past few years,
due to careful budgeting and budget management, the RBOE was able to provide
EDUCATION CENTER 49 COTTAGE PLACE RIDGEWOOD NJ 07451
http://www.ridgewood.k12.nj.us/
approximately $2.6 million in tax relief. Because of unanticipated expenses during the
2007-2008 school year, there will be only $700,000 in tax relief for the 2009-2010
school year, and an almost $2 million gap between projected revenues and expenditures.
The situation is exacerbated by the fact that our out-of-district Special Education and
Vocational Education tuition costs have also increased in excess of $500,000, or 16%.
Finally, other costs—insurance, employee contracts, energy, etc.—have increased at a
higher percentage rate than the amount by which we are permitted to increase our budget.
At this time we do not know how or when the Federal stimulus money will affect the
district.
Q: Where, specifically, is the district finding the $2.5 million to close the gap?
: This is an extremely difficult process because there is very little excess in the RPS
budget. The RBOE has always developed fiscally responsible budgets, which makes it
harder to find areas to cut. While other districts are attempting to save money by hiring
outside maintenance and food service contractors, the RPS district long ago implemented
those cost-saving moves.
We will close the gap by taking the following measures: reorganizing the
Curriculum, Instruction and Assessment Department, as well as the Business Office;
eliminating positions in all areas of the district, including teaching, support staff and
administration; reducing co-curricular and athletic offerings; reducing staff development;
reducing capital/facilities maintenance projects; eliminating summer school and returning
teachers currently in non-teaching assignments to the classroom. Central office
administrators will not take any salary increases for 2009-2010 and a one-year contract
with the Ridgewood Administrators which includes a 1% reduction in the cost of
contract. Savings from breakage (the difference between a retiring, experienced teacher’s
A
EDUCATION CENTER 49 COTTAGE PLACE RIDGEWOOD NJ 07451
www.ridgewood.k12.nj.us
compensation and the amount that we budget to replace that person), will also help close
the gap.
Our goal is to meet our statutory budgeting requirements while minimizing
impact on students, continuing to provide excellent educational experiences and
improving overall as a district. You can understand that this is a very difficult budgetary
challenge.
The 2009-2010 Budget Process
It is the Ridgewood Board of Education’s mandate to present to voters a fiscally
responsible budget to voters every year.
Q: When does the budget process start?
A: School budget development starts in the fall (October) of the proceeding year.
Q: How does the process begin?
A: The process begins every year with projections of enrollment and revenue for the next
fiscal year, and input from the school and departments. The RBOE has been discussing
the 2009/2010 projected budget gap since the fall of 2008.
Q: How is the budget finalized?
A: The budget is developed by the district administration and presented to the RBOE for
preliminary approval. It must be submitted to the Bergen Executive County
Superintendent of Schools (ECS) by March 18th. The ECS reviews our budget and has
the authority to make line item cuts without appeal. The budget must be returned to the
BOE by March 30th. The RBOE is required to conduct its final budget hearing sometime
between March 30 and April 2nd. The BOE/Budget election is April 21, 2009.
Q: What about state/federal aid numbers for next year?
EDUCATION CENTER 49 COTTAGE PLACE RIDGEWOOD NJ 07451
www.ridgewood.k12.nj.us
A: We have yet to receive our state/Federal aid numbers for next year. We are hopeful
that aid will be flat and that the federal stimulus package will increase the amount of aid
that we will receive. We will not know our aid figures until the middle of March.
Q: What does this mean for the Ridgewood Public Schools?
A: The district is and will remain fiscally sound. A commitment to excellence in
education continues to be our primary focus when developing the budget. We must
balance the needs of all students and all aspects of the educational process…all the parts
that as a whole that make Ridgewood special and excellent.
It is important to remember that Ridgewood is not alone in having to make hard
choices. Most districts throughout the state are facing similar financial challenges and
have to make the same kinds of difficult budgetary decisions.
Please take the time to familiarize yourself with the proposed 2009-2010 school
budget when it is presented to the public at BOE or other local meetings. For the sake of
our town, our schools and our children, go to the polls and vote on April 21.
We are facing tough financial times in our country, state, county and schools, as
well as in our homes. I look forward to working with the community to maintain our high
quality school system during these difficult times. Please feel free to contact me if you
have questions or suggestions, or e-mail budget10@ridgewood.k12.nj.us.