For school officials who thought last year’s budget process was tough, there does not seem to be an end in sight.
Officials reported what appears to be another set of financial conditions that may give the WW-P school board another round of headaches in the upcoming budgeting process.
During the school board’s meeting on September 28, board member Randall Tucker, who is a member of the board finance committee, reported that the 2 percent cap on property tax increases imposed on school districts around the state this year means that the district will only be able to increase its budget for the 2011-’12 year by $2.7 million.
But officials are already expecting new expenses that will automatically surpass that cap. Tucker reported that early estimates indicate that the salary agreements in place with various unions and school officials will automatically add $3.5 million to next year’s budget. Other projections also show that the district’s benefits contributions will also increase by $2 million.
On top of both those increases, the school district may also have to deal with cost increases to send students to the Princeton International Academy Charter School, said Tucker.
“It puts us in a challenging position just to begin the budget process,” Tucker said.
He said these are just a few of the concerns for officials, who will begin meeting to set parameters as considerations will begin shortly for next year’s budget.
He also reported that the school’s auditor is predicting an excess fund balance of $2 million, which is in line with previous years’ balances and is around the amount officials expected.
While the West Windsor-Plainsboro School District’s $155.9 million budget won the approval of voters in April, the flat measure reflected a $7.56 million loss in state aid. To cover that gap, the district eliminated some 50 teaching positions.
The school board also re-negotiated contracts with the teachers, which included a three-month salary freeze and other concessions, saving the district more than $1 million. The board also voted to privatize its custodial and maintenance services, which was estimated to save the district about $3 million over a two-year period.
