Wednesday, February 10, 2010

Death by a Thousand Cuts

Note: In addition to the projected $6 million hole for next year, we just had a million dollars cut from this year's budget. Here's the list (page 10) of the state's cuts, district-by-district.

Your taxes are about to go up again. This week, Dr. O’Malley presented his initial draft budget proposal to the Matawan-Aberdeen school board and he recommends raising school property taxes by 3% to help close a projected $6 million budget hole for next year. Today, I emailed the board my budget proposal that entails a small tax decrease. It’s all about what you’re willing to cut.

Between salaries, benefits, and the like, total expenditures are projected to increase by $3.5 million. State aid will likely be cut by $2.5 million. Hence, the $6 million budget gap.

To cut expenses, Dr. O’Malley has recommended eliminating 39 staff positions, ending summer school, and using one-time measures such as paying our health insurance bill two months late. The $1.2 million in one-shots means we could still be looking at another $4 million budget hole next year, depending upon what happens in the state legislature. So, even with $3.5 million in permanent spending cuts and $1.3 million in tax increases, we’re still looking at more cuts and more tax increases next year.

The argument is tax increases are natural and necessary because costs increase and wages increase and the only significant sources of revenue are government aid and property taxes. But that assumes we’re operating at near maximum efficiency, that there’s no more fat to be cut.

So, let’s talk about what the recommended tax increases will help fund. High school students can take the following classes to meet their credit requirements for graduation – drivers ed, ceramics, acting, computer applications (i.e. Excel and Access), sports marketing, TV production, stock market analysis, food fashion & family (meal prep and sewing), business technology (i.e. working in the school store), stage acting, children’s literature, SAT prep, and choir.

The administration objects to cutting any of these programs, all of which could be done as after-school activities, especially considering that one-third of seniors have failed to score 50% on a HSPA exam and may not graduate.

In the elementary schools, we have three full-time computer teachers teaching six to eight-year-olds how to surf the web and do PowerPoint presentations.

We have custodians earning more than teachers with masters degrees.

We have school psychologists earning supervisor salaries even though they don’t do any supervisory work.

We’re spending over $60,000 a year on student work-study programs.

Among the sports teams, we’re funding golf, bowling, tennis, and volleyball.

We could cut all these programs without impacting our school mission one bit, namely educating and preparing our students to “achieve success as honorable members of society”.

My proposed budget calls for the following:

  • Outsource all staff members and departments that can be outsourced. This will allow us to remove unwanted personnel, take staff off the salary guides, and give them benefits on par with the private sector
  • Eliminate one pre-kindergarten position. This will raise class size but we are not required to provide pre-school programs to the general public
  • Postpone textbook purchases for one year. This is a one-time measure that doesn’t bend the cost curve but we’re in a bad year
  • Eliminate all work study positions
  • Replace elementary computer teachers with self-guided software tutorials
  • Raise class sizes up to 22 students except in Strathmore where overcrowding already has class sizes at 26
  • Eliminate the TV production class
  • Eliminate high school computer instruction. Astonishingly, the school district does not teach any computer programming. (Web page design refers to page layout, not data processing.) Excluding graphic design, the computer courses have very little commercial or educational value
  • Eliminate ceramics
My proposed budget would slightly reduce taxes without adversely impacting our core mission or undermining our future. However, I acknowledge that I am also using $1.7 million in one-time spending measures, which means expanding next year’s budget gap by $500,000 above Dr. O’Malley’s proposal. Even so, from a financial perspective, over the next two years, we’ll be spending $2.5 million less under my proposal. I would also argue from a strategic perspective that my cuts preserve more core services and are more aligned with our long-term goals than Dr. O’Malley’s.

The one other possibility that has been discussed but not seriously considered is for the board to declare it will not consider any adjustments to next year’s teacher salary guide. The issue is whether the district can reasonably budget under the assumption that we won’t cave into pressure and increase funding for salaries.

None of this is easy. We’re talking about terminating high-valued employees to retain unwanted tenured employees. We’re talking about people losing their jobs. But this is what it takes to keep taxes from rising.

The current proposal calls for a 3% tax increase and eliminating positions and services that I consider core to our mission. I have offered an alternative.

For everybody complaining about their high property taxes, remember this - The government didn't raise our taxes all at once. They did it bit by bit. Voting against the budget won’t stop our taxes from increasing. The only way to do that is to contact your representatives on the school board and to do it now. >>> Read more!

241 comments:

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Aberdeener said...

IKT2,

Sorry, but you lost me.

$550,000 - This is the excess surplus

$1.5 million - Where is this money coming from? Are you saying we have emergency funds in excess of 2%?

$393,000 - If our fund balance is decreasing, doesn't that mean the money has been spent or already accounted for in one of the above numbers? Why is this money being added towards our total surplus?

Ultimately, before the cuts, how much cash on hand were we projected to have at the end of the school year?

Sorry for the questions, but I'm not familiar with these numbers.

Aberdeener said...

One more question -

How much money would have gone to tax relief before the cuts and how much money is left for tax relief after the cuts?

Stop the ticket whining said...

Metoo,

What would Mommy or Daddy have to pay for the missing third brake light being out if there was an accident? How much would your insurance go up? How much time and inconvenience for an accident caused by a non functioning brake light that you failed to monitor?

A properly functioning third brake light is placed at a higher level for one good reasonS. What if a big truck was behind your daughters car and did not see the third brake light go on? Is it a brake light that was specifically placed there for an exacting and safety related purpose? Who would be at fault? The truck driver?

The answer is the operator of the vehicle with the burnt out bulb in a mandatorilly installed safety device that they failed to monitor?

What would that $1.00 bulb cost Mommy or Daddy when their daughters car was hit from behind?

So Mommy or Daddy is on here bitching about a cop doing his job when Mommy or Daddy did not check their own daughters car for her safety.

You deserve the ticket and should learn the lesson. The cop did you a favor. Thank the cop for doing his job.

Try this one for Mommy and Daddy.

Try being A C C O U N T A B L E!

Ticket was a lesson stupid said...

I agree mom and dad are to blame along with the daughter. How much was the ticket. That was a cheap cost to learn a lesson on being stupid. Your daughter could have been hurt. Think of that one geniuses.

Think about it said...

What is 7 minus 3?

4

Tyhat is right.

That is how mnay council people will be able to have input on the voted down school budget in Town.

Montone = Husband=school employee

Drapken = Husband/Father=school emp

Raymond = Husband/Father=school emp

Anonymous said...

"If giving him a raise cuts our taxes by 1% or increases district performance by 1%, then it's worth the money." Why are you giving this man a raise for DOING his job?? Isn't that what you hired him to do? Saving money and finding programs that work are exactly what I expect him to do- especially for his salary which is one of the highest in the state compared to the size of the district he is working with. Take that extra 1% you would save and reduce our taxes or keep a program that benefits our kids. Slap him on the back and say "Good Job" if he does exactly that.

Fiddle Woman said...

Think about it:

Raymond is no longer on the council.

Anonymous said...

Ok then. So when raymond was on the council he could not have any input on 60m in spending. Why be on the council then if you can't help the voters with the largest part of their tax bills. He sold his soul then for jobs for his family and was inconsequesntial of tens of millions spent improperly by quinn and his assorted band of idiots. So much for representing your constituency.

IKT2 said...

Joey,
These are the numbers and explanation I got from the state regarding our district. If they are not correct or Dr.O'Malley disputes them, please post your understanding and where they are wrong.

Aberdeener said...

Thanks for contacting the state. I'll ask Ms. Irons to explain the numbers Monday night.

Jim said...

Anon 7:57,

Anyone who performs their job well expects compensation increases. You might even say it's a good motivator. The absence of that motivator leads to inferior work or the departure of the person holding that job, and it's hard to replace that person with qualified personel if raises are ruled out immediately.

Aberdeener said...

Jim,

Well said.

Anonymous said...

Jim,
That's fine in the real world, but this system does not operate like that. They have contracts that both sides agree to and should be negotiated at that time. The system doesn't allow for incentive based pay because you can't have it both ways. After tenure or a contract your stuck with the bad and nothing can be done about it. Nothing is wrong with incentive based pay, but it should be for all and it is not.

Aberdeener said...

O'Malley's contract was negotiated to include incentive pay. If we were allowed to do the same for teachers, we would.

Anonymous said...

Thanks Bruce! Too bad you couldn't figure it out when you were in charge!

Anonymous said...

Aberdeener, you are allowed. Your the one negotiating the contracts. What do you mean you would if you could? As was the case with O'Malleys contract or the teachers contract, or the administrators contracts you have a seat at the table. You said yourself you give raises to sub standard employees just to keep them from being disgruntled. The way you have it now you give raises for incentives to good employees and raises to bad employees to keep them from being disgruntled. Its not just teachers it is also other administrators. Under your system of evaluation they all get raises good or bad. This is why the system is broken and the taxpayers are the big losers. Stop the insanity, we can't afford it.

Aberdeener said...

If a teacher didn't get his merit pay, he could file a grievance and it goes to arbitration. Every single time.

Anonymous said...

Aberdeener said...
A third of our seniors are at-risk of not graduating. Another third will never see a college degree. Taxes are through the roof. We're looking at a $6 million budget hole. And you won't consider eliminating a ceramics class.

Please enlighten me. How does eliminating ceramics get a student to graduation, a college degree, or significantly reduce debt? Clay isn't that expensive, buddy.

Aberdeener said...

Clay isn't expensive but teachers are. And so is time. Most of the kids in that ceramics class would be better served taking a class that would help them get through college.

Anonymous said...

Aberdeener,
You prove my point. That is the way the system is set up and it is the reason no one should receive merit pay. No exceptions.

Anonymous said...

College is great for some kids but not all Joey. Get off your high horse. Just because someone doesn't have that degree doesn't mean they are destined for failure.


I never set foot on a college campus as a student, and if I were a betting man I would bet that I make a hell of a lot more money that you, with your high and mighty degree makes.

Not saying that makes me better than anyone, or worse, just saying that not every kid needs to go to college to do well in life.

Aberdeener said...

I'm happy you make a lot of money, despite not having a college degree. Do you consider yourself the norm?

Anonymous said...

For those without degrees,that are willing to do what they need to provide for their family, so that they may have a comfortable existence, yes, I think I am the norm.
The other ones, both college educated, and not, who sponge off the welfare system, while driving brand new cars, and sporting all kind of bling...that's a different story.

Aberdeener said...

Wouldn't you agree that a student who has mastered the work habits, the skills, and the knowledge to succeed in college is better prepared for the future than one who hasn't?

Right now, fewer than one third of our high school graduates are projected to earn a 4-year degree. Wouldn't you agree that percentage is too low?

Anonymous said...

I think in some circumstances, the 4 year degree is overrated. This does not mean I don't think some careers require a degree, example being a teacher.
The other side of the coin is law enforcement. Going to college before going into that type of career doesn't make you anymore prepared for what awaits you on the job. There are guys with GED's who are excellent cops, and guys with Masters Degrees who have absolutely no business carrying a weapon. That can also be reversed, but hopefully you get my point.

Anonymous said...

A bit off topic, I apologize. Does anybody know what happened to the women who ran the senior center. I believe she was also involed in other things throughout the township. I think her name is Shiela Flam. Any input is appreciated

Anonymous said...

Get your facts straight;for your information, Raymond's wife was a crossing guard. Crossing guards work for the town. Joe Raymond had input and voted on the school budget all the years he was on the council. You people really need to know what you are talking about before you post what you think are the facts.

Anonymous said...

Joey, a bit of topic from our district alone, but it appears to me, according to the State record posted, that Freehold Regional with a higher DFG rating than our district was getting over 45 mil. in state aid, and MARSD was only getting over 13 mil. Am I correct in how I am reading these numbers? Why would a better DFG rating get them more aid? I realize now we will be getting 1 mil less. Also, if we had a 1 mil surplus not used, how are we now down 6 mil? If I am reading this incorrectly, then please clarify it for me.

Aberdeener said...

Anon,

You make a good point. Freehold Regional has three times as many students but they get four times as much state aid.

I don't know how the formula works so I can't explain.

However, if you want to see something truly crazy, Asbury Park has half as many students and gets $60 million from the state. They're losing less state aid than we are.

Anonymous said...

when is this town going to fix the potholed mess that is Atlantic avenue.

Anonymous said...

You will have to wait. There are much more important potholes in Strathmore that have to be repaired.

Anonymous said...

Joe Raymonds daghter has been a school bus driver for years now. His wife was a crossing guard and then a became school bus aide. Talk about getting the facts straight. Raymond could not vote for probably the last four years at least on anything school related. Those were the true reasons. Next!

Jim said...

Some random ideas to help with this budget and not raise my taxes another 20% (I mean, jeez, when I bought my house in '06 I was a good bit under 5k, now I'm well over 6k):

- Cut programs that most municipalities handle as a matter of the private sector. For example, Pre-K. I've never heard of a school district offering Pre-K, and I'm also living proof that Pre-K is not necessary to succeed in life.
- Set standard funding for all after-school activities, including popular sports. Say, something like the district negotiates rates for uniforms & equipment, and pays 20%, and the parents cover the remaining.
- Put those "well-rounded" HS courses on a rotating schedule - say, instead of offering 8 per year, offer 2. Which 2 varies year-to-year, so after 4 years all 8 have been covered. Perhaps negotiate an agreement with 3 other school districts to go on the same rotation with staggered offerings, so the same 8 teachers are generally available and just passed from district to district each year.

I do not agree, however, that technology does not need to be taught in younger grades. I expect typing to fully replace handwriting as a language skill in the near future. How to make a facebook page, on the other hand.. that's debatable.

Anonymous said...

Nice try Jim, but O'Malley will not be looking for common sense solutions or solutions that will take work on his part. Last years budget was a no brainer, contrary to what the aberdeener says, and his value will be proven this year when actual cuts have to be made. He is already pushing for a tax increase, instead of looking for ways to keep our taxes down while cutting expenses. Watch, his recommendations will be simple slash and burn cuts with a lot of finger pointing, and raises for everybody. As long as educators run the business of education, and it is a business, the taxpayers will continue to endure the scenario of never ending tax increases.

Anonymous said...

Joey,
I am having difficulty understanding your position on this budget. After your original post and 234 comments later could you explain your position on this budget. You seem to not agree with O'Malleys assessment to increase taxes 3% and eliminate positions and services that you consider core to your mission. If that is correct, will you vote against the budget he recommended at the last meeting and have you changed your mind on not raising taxes?

Anonymous said...

One of the cuts is going to be privitizing the custodians in all the schools, which means 32 people being laid off. I have lived in another town a few years back that did this and it became a nightmare. There were a few incidents in the schools where the people working for the private company left notes for the children. The custodians in our School District need to be fingerprinted and be approved to work by The State of New Jersey, the privitized companies do not do that, which means there will be strangers working closely to our children. I don't want my children to be near strangers, do you?

Aberdeener said...

Our subs were privatized and they're fingerprinted.

I believe the school district can put those requirements in the bid.

Anonymous said...

The proposed cuts include a loss of approximately 80 jobs, instead of 80 people losing their jobs why doesn't the Board take a look at people in higher paid positions that make alot of money, lay them off.
Not only are approximately 80 families going to suffer from the cuts but our children are also going to suffer. The propose to cut technology, buses, work study programs and supplies.

Aberdeener said...

We did look at the administration and the problem is the ones we consider highly valuable don't have tenure.

Anonymous said...

I see your reply to someone else regarding the fingerprinting of the privitized custodians, I assume that means that a background check is done on the person. What happens if the person is from another country and was a rapist, killer or a child molester in that country????

Aberdeener said...

What about it? You think we're running teachers' fingerprints through Interpol?

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