District searching for ways to offset state aid decrease
By ROBERT LINNEHAN
The Cherry Hill Sun
2/26/2010

With the state withholding about $4 million in aid to the Cherry Hill School District this year, the district faces more than a $20 million deficit for the 2010-11 school budget.

In total, more than 173 full-time employees of the district could be let go if the district decides to maintain a flat tax levy in 2010-11 and bridge the $20 million deficit, District Public Information Officer Susan Bastnagel said.

The state’s decision to withhold about $4 million in state aid for the district is forcing Cherry Hill to use its excess fund balance of $3.5 million – something the board had earmarked for taxpayer relief in 2010-11 – to make up for the lack of funding.

Adding to the deficit is the prediction that the state will further cut aid to school districts next year by as much as 15 percent, Bastnagel said. But that’s what makes it so maddening, she said, as the district foresaw 2010-11 being a difficult year, which is why it earmarked the $3.5 million for taxpayer relief.

“They’re raiding our savings account to bolster their savings account. We think that’s wrong. It won’t impact operations this year, because you can’t use surplus in the current school year, because it has to go for tax relief next year,” Bastnagel said. “It’s a difficult budget. We also have some other areas where we project a decline in revenue.”

The board projected its 2010-11 budget at $183.2 million, with revenues of $161.9 million. Several alternatives were discussed last week at the board of education’s budget workshop, Bastnagel said, all of which mean painful cuts within the district.

Some reductions – which the district dubbed as tier one reductions – were denials for “additional spending,” transportation costs, and health benefit savings, which only save about $4.4 million for the next budget.

The elementary schools could see the most full-time employees lost, with almost 71 full-time employees possibly being cut next year. Spanish would be eliminated from the elementary school curriculum and class sizes from grades one to five would be increased to their maximum levels. These reductions would see almost $4 million saved next year. At the middle school level 40 full-time employees would be cut. Middle school athletics would be downgraded to the intramural level and the Mt. Misery Program would be eliminated. The Mt. Misery program was on the chopping block last year, but many students and teachers protested its removal from the district’s curriculum. The savings would amount to about $2.9 million.

The high school would see about 38 full-time employees let go, district representatives reported.

Campus police and an assistant principal position would be terminated and the high schools would also see their class sizes increasing. This would save about $2.8 million. There are several other reductions, Bastnagel said. The total savings realized from the possible reductions would be almost $12.1 million, she said.

If the district proposed a 2 percent increase in the tax levy for next year and the state reduced aid by 15 percent, Bastnagel said the deficit would shrink to a little more than $14 million, still more than the total reductions proposed at last week’s meeting.

“These are very dramatic reductions and we have a long way to go. But, it is certain we will have to make cuts and have to sacrifice,” she said. “What remains to be seen will be how deep those cuts have to be. It depends on if there’s an increase in the tax levy and what the state aid reductions are.”

To view the entire budget presentation, please visit the district’s Web site at cherryhill.k12.nj.us.