School budget suffers loss due to deferment
Perpetually deferred
state aid payment
may cause tax rise
BY JOLENE HART
Staff Writer

SAYREVILLE — An upcoming budget deficit resulting from a shortfall in state aid may result in another school tax increase.

The Board of Education recently discussed methods of approaching the problem brought on by an unforeseen deferred payment of $700,000 in state aid for Sayreville schools.

"Our budget is modeled on pledged state aid," Superintendent of Schools Dennis Fyffe said. "This puts us in the hole before we start the (2004-05 school year) budget."

According to Fyffe, the state Department of Education had indicated that local school districts would receive aid for the 2002-03 school year in 20 equal payments — 19 of those payments would be received during the year, and the 20th installment would arrive at the start of the next year.

"We thought we would get 19 payments one year and 21 payments in the next and we would come out even," Fyffe said.

Now, school officials have received word that the same deferment of the final installment will happen in the following school year, leaving the school system perpetually awaiting a payment of $700,000.

"Sooner or later someone will be left standing without a chair," board member Curtis Clark said regarding the shifting of funds.

"This type of bookkeeping is an unacceptable practice. It would not be permitted anywhere else. This affects everything we do," said board member Arthur Rittenhouse.

According to the board, the 2003-04 budget would have yielded $515,000 in extra funds, which would have been used to provide tax relief for borough residents. That money will now be used to offset the deficit, as will the district’s surplus funds. The school district maintains a 3 percent budget surplus, in accordance with state policy. This amounts to about $185,000, which is to be used in the event of unforeseen expenses or emergencies.

Since it will have to use these funds in the budget, the school district must now replenish the 3 percent state-mandated surplus of $185,000. That likely means an unexpected tax burden on residents.

"The state says schools must maintain 3 percent of their budget in surplus. Prior to this, we had the 3 percent, plus more. Now we have a deficit," said school Business Administrator Emidio D’Andrea.

"This is a real problem for schools across the state and a real problem for Sayreville," Fyffe said.

"If we don’t have that state aid, we have to cut back on all educational programs (or raise taxes)," Ritten­house said.

Board members encouraged resi­dents to contact their legislators, namely state Sen. Joseph Vitale, As­semblyman John Wisniewski, As­semblywoman Arlene Friscia and As­semblyman-elect Joseph Vas about the problem.

According to Rittenhouse, Vitale has pledged to hold a special session of the state Senate to discuss the problem.

The school board was expected to draft a letter asking the state represen­tatives for action in this matter.

Sayreville’s school tax rate in­creased by 15 cents with the nearly $60 million budget for the 2003-04 school years. The rate rose from $1.79 to $1.94 per $100 of assessed valuation.