Because the state has delayed announcing aid to schools in the upcoming year, the Bayonne Board of Education will have to pass a budget without knowing what it will get in revenues until the day of the vote, said Board Business Administrator Clifford Doll.
The $117 million budget only has accurate expenditures, not revenues, because Gov. Jon Corzine has delayed announcing aid to school districts until the state has a clearer idea of what impact the federal fiscal stimulus package will have on state revenues.
A budget has two parts – revenues and expenditures. When drafted, the budget shows how much it intends to spend in the upcoming year and how much it expects to receive in revenues from various sources. The difference between what is to be spent and what is to be raised informs the public the amount that must be raised from taxpayers to make up for the difference.
Expenditures cover items such as employee salaries, purchases of supplies, maintenance of facilities, and more.
Along with the usual expected increases in costs, the school district will face additional costs for city services – such as trash and sewerage fees imposed on the district for the first time.
Doll said because the budget has to be presented to the county superintendent of schools for review, the Board of Education will convene at a special meeting on March 12, holding a workshop at 6 p.m. and then a public hearing at 6:30 p.m.
This will allow the budget process to move ahead so that the Board of School Estimate can meet on April 2 and 8 to collect additional public comments and make its recommendations for budget cuts.
The Board of School Estimate is comprised of the mayor, superintendent of schools, the school board president, and two members of the City Council. The board meets to review the budget and can impose cuts if they feel the need to.
While the state may be waiting to see how much help the federal stimulus package may be in meeting its own budget needs, Doll said the district shouldn’t hold its breath in thinking the federal funds will help with everyday operating funds. Most of the funding from the federal government must be used for specific programs and cannot be used to cover everyday expenses.
In some cases, as Board President Will Lawson pointed out, these cover items that the district might not otherwise invest in.
“But it is ‘spend the money or lose it,’” said Superintendent Dr. Patricia McGeehan.
Doll, however, said federal programs often pose other problems and pointed to a paperwork glitch that has more than $500,000 from last year frozen in a Board of Education bank account because local officials can’t get state or federal officials to release the funding.
State delays in providing aid in a timely fashion have caused a cash flow shortage in the Bayonne school district. Last year, Doll sought approval to bond up to $30 million to cover operating budget expenses. School budgets have several parts. In general, schools borrow for long term capital needs, such as the construction of new schools or renovations to existing schools, with the operating budget paid out of state aid and money raised from taxes.
Doll said state and local school officials are waiting to see the details of the federal stimulus legislation to see what limitations will be imposed on spending. Depending on the programs promoted by the stimulus package, the federal legislation may not help the district in dealing with its everyday expenses.
Doll said Corzine anticipates announcing the new aid figures around March 10 to 12, leaving district officials nearly no time to review them before passing the budget on March 12.
“We hope our aid numbers go up,” Doll said. “But we just don’t know.”
Al Sullivan may be reached at asullivan@hudsonreporter.com.