Two Oppose Proposed School Budget; Plan Calls for 1.9 Percent Tax Levy Increase

Two Toms River Board of Education members voted against the district's proposed 2013-14 budget, citing objections to the use of a $234,000 health benefits cap waiver.

Ginny Rhine and Alex Pavliv voted no to the budget that will be sent to the county superintendent this week, as both indicated that they would have preferred to find other funding sources rather than apply a cap waiver. 

"It's a relatively small amount compared to the amount of the budget, so just on principal it doesn't seem worth using the waiver," Rhine said, especially since residents are no longer able to vote on the budget.  

All other members, except for Thomas Baxter who was absent, voted in favor of the $208 million spending plan, which calls for $141,838,236 to be raised by local property taxes — an increase of 1.9 percent over 2012-13. After county review, the budget will return before Toms River board members for a March 21 adoption vote following a public hearing at High School North. 

"We believe that we have put together a fiscally sound budget, one that provides for the means of the district while being conscious of the cost to the taxpayer, especially in light of the times and recent events," said Business Administrator William Doering, who presented the budget Tuesday night to a small crowd at High School North.

The district will put $1.5 million of its fund balance surplus toward revenue. Taking the health benefits cap waiver will allow the surplus to remain slightly above $2 million, a figure with which administrators are comfortable. 

The district is expecting $4.3 million in restitution from the Michael Ritacco case; if not all of that can be paid, insurance is expected to cover $2 million, according to officials. Though unclear when it will be paid, having that money incoming made the decision to use some surplus funds easier to handle, Doering said last week.

The total property tax levy increase is 1.9 percent, or $2,712,794, which includes the general fund and debt service. The district is $1.87 million under the 2 percent tax levy cap. 

Based on the prior year average property assessments — and not yet factoring in the expected ratable base change which likely will be certified by the county in mid-April, the impact of the tax levy increase is:

"We do not yet know the actual ratable base figures at this time, therefore, these figures do not factor in the final ratable base numbers," reads a line from the district's budget presentation regarding the above figures. 

Toms River officials have said that the township's ratables base may have lost 20 percent because of damage caused by Sandy, which may impact the distribution of school taxes among it and Beachwood, Pine Beach and South Toms River. 

Local property taxes make up over $135.6 million, of 65.1 percent, of the budget's revenues. The district will receive a total of $67,712,061 in aid, a 0.6 percent increase over the 2012-13 aid amount, according to the state.

Even with an aid increase of $433,802 for 2013-14, the district is still receiving $4.2 million less than it did five years ago, according to Doering. Greater aid for the upcoming budget year would have been welcomed by administrators, especially given the devastation of Superstorm Sandy.

"This would have been a good year for an increase in state aid," Doering said.

The district is now $43 million below its adequacy level — the amount of money the projected to run a school system of its size, Doering said. That amount last year was $34 million. 

Doering pointed out that, of the $3.984 million expenditures increase over last year, most of that is made up of a $3.1 million increase in employee benefits. But the district also receives revenues from things like its solar project, which provides annual electricity savings.

The district is always looking for ways to save and "tighten" budget areas.

"We will continue to strive to improve our district and get the most out of the resources available to use," Doering said. 

Board President Ben Giovine thanked administrators for holding additional public budget meetings prior to the Tuesday presentation. 

"We really had the ability to go line-by-line through expenditures and revenues," he said.

Few from the public spoke about the budget when the board solicited comment. A resident asked if the once-faltering Cafe @ 1144 was still losing money. Doering indicated that it is earning revenue and he will provide a more detailed report to the board.

Budget documents will be posted to the district's website for public review, according to administrators.