Warren Board OKs ‘Fiscally Responsible’ Tentative Budget

After discussing the fiscal responsibility of having a lower tax levy versus a somewhat higher rate that would allow for “banking” funds for future use, Warren Township Board of Education members agreed to compromise on the tax levy in the tentative 2013-2014 budget, Monday.

The tentative budget to be raised in local taxes comes in at 1.95 percent (below the state's 2 percent tax levy cap) and is scheduled for a public hearing at the March 21 meeting.  At 2 percent, the budget was estimated to be at $43,141,570, with $1,187,441 coming from state aid and $37,766,740 in taxes.

The 1.95 percent tax levy reflects a tax rate of $0.933 per $100 in assessed value (down from last year’s $0.939). But due to increased assessments, will add almost $126 to the tax bill of the owner of property assessed at the new township average of $643,250.

For the first time, the budget was compiled using zero-based budgeting rather than starting from last year’s expenditures and making adjustments.

Finance Committee Chairman James Sena reported that the zero-based budgeting “came up with a realistic budget that was 1.83 percent” above the previous year and below the 2 percent state-set tax levy increase cap.

Board member Roberta Monahan recommended that the budget be set at a 2 percent levy, saying, “That’s $63,000 we’ll never get back; we’ve learned that the hard way. We want to be able to continue our work and support the teachers. We can do it without major pain.”

She noted that the 2 percent figure will cost the average household about $10 more per year.  Monahan also pointed out that the district lost $43,000 in state funds that were to have been used to service two copy machines.

“It’s a tough line to walk between funding the schools and doing what is best for the residents in the town,” Sena replied.

Don Huber, board vice president, said, “There’s really no one hard and fast right way. We’re all trying to be fiscally responsible.”

Board President Mildred Spiller indicated she was more in favor of “erring on the side of saving and planning. Things happen all the time; we can’t anticipate them.

"The 2 percent has built-in fiscal responsibility," she said. "We’re in relatively good shape today because of that saving, saving, saving” approach of previous school boards.

“With planning comes banking,” she added.

Tia Allocco stated, “Because of future needs, I would be willing to go to 2 percent if $63,000 could go to banked capital.”

“The future is always uncertain. To say this has any more unknowns than any other year, I can’t go there. The future is always cloudy. We need to make the best decision with the information we have,” said Sena.

While the Finance Committee had recommended the 1.83 percent, Superintendent Tami Crader said, “For the first time, I’m recommending 2 percent,” citing particular concern for special education students who may enter the district and require special programs.

In light of the $43,000 cut, board members agreed to go to a 1.95 percent tax levy, which will enable the board to handle the copier issue in the 2013-14 budget and bank any additional surplus.

“That’s what you call the spirit of compromise,” Spiller said.

Highlights of the proposed budget include:

• Reducing 2 teaching positions at the elementary school level and a half-time special education teacher because of declining enrollment.
• The addition of a full-time curriculum supervisor, an additional tech support position and a behaviorist.
• Salaries and benefits account for 75 percent of the budget.
• Capital projects including boiler replacement at Central School, building envelope repairs at Angelo L. Tomaso and Mt. Horeb Schools and roof replacement at Woodland School, totally a $2,061,500 withdrawal from Capital Reserves.

The 2012-13 budget came in at $41.7 million, with $37,216,026 raised in local property taxes.