H.P. schools considering a waiver to 2% tax cap

Armed with a slight increase in state aid over the 2010-2011 school budget, the Highland Park school board will be hammering out its budget for the 2011-2012 fiscal year during its next two meetings, scheduled for March 21st and March 28th at H.P. Middle School.

The total state aid coming to Highland Park Borough for the 2011-12 proposed budget is $3.12 million, an increase of $245,000 over 2010-11. According to schools superintendent Dr. Frances Wood, this increase amounts to a one-fifth refund on what was cut from the budget last year, when state aid was slashed to below $3 million.

 

The initial budget discussions began at the February 28 school board meeting, where a preliminary budget of $24,741,146 was approved for submission. The accompanying levy would increase taxes on the average home by $150.28 per year, or $12.52 per month.

 

Of particular concern are the district’s health care costs, which have increased dramatically in recent years. At the March 7 meeting, the board discussed the possibility of applying for a waiver to the state-imposed 2 percent cap on annual property tax increases by local governments. If submitted, this waiver would be used to raise taxes enough to cover the costs of increased health care costs.

The tax cap law was enacted last summer, but allows for exceptions for certain kinds of expenses -- including cost increases for health care, pensions or debt service. The exemption will be discussed at the upcoming board meetings.

“We have not cut any teachers or any programs,” said school board member Adam Sherman. “We do feel that we might have to apply for the health care waiver because of skyrocketing health care costs, which would add up to a 2.9 percent tax increase – but that is still well below increases in previous years.”

Board president Wendy Saiff added that the budget will be affected by increased costs faced by all of society right now. “Gas prices, energy prices, health care costs – a lot of the additional money will have to be spent on things like that, which are getting more expensive across the board,” she said. “Getting this small increase really doesn’t remedy anything that was cut in the past – it just helps us keep going at our current levels.”

“We have done the best we can under difficult circumstances,” noted Saiff. “We have been very protective of our full-day Kindergarten program, for example, because we feel so strongly that early childhood education is of the utmost importance. We are lucky because Highland Park is such an informed, educated community that supports its public schools – and this has paid off in the quality of our school system, which consistently ranks as one of the best school systems in the state, and the best in the county.”

The school budget discussions will continue at the upcoming board meetings on March 21 and March 28, both at H.P. Middle School. At the March 28th meeting, the budget will be finalized and approved for April's public vote.