N.J. urges schools to freeze spending
By DIANE D'AMICO Education Writer, 609-272-7241
Published: Tuesday, January 20, 2009
The Press of Atlantic City:
http://www.pressofatlanticcity.com/186/story/377954.html

TRENTON - Faced with uncertain state aid, the state education commissioner has recommended that school districts immediately freeze all nonessential spending and review all expenditures for the rest of this school year.
In a letter sent to all chief school administrators, Commissioner Lucille Davy also said she would work with education groups to identify state mandates that might be lifted to help reduce costs for the 2009-10 school year.

"Given the uncertainty of the magnitude and impact of a prolonged national recession on our state's fiscal situation, I am recommending that you take the same steps that we have taken in the department," the Jan. 16 letter states.

Davy also said that while Gov. Jon S. Corzine remains committed to expanding public preschool, funding it will be difficult without federal support. President-elect Barack Obama included federal funds for public preschool in his campaign platform, and state officials are hoping some money might be included in a federal stimulus package.

Davy said she hopes to have more specific information by late February but emphasized that the state will not ask local taxpayers to fund preschool.

"I understand that for planning purposes and in order to notify parents you need a decision on this as soon as possible," the letter says.
School officials have already begun developing their 2009-2010 budgets, and are looking for some direction on what to expect from a state government battling a potential $2 billion shortfall in funds. Davy said in the letter she does not yet have any news about K-12 funding.

Direct operating aid to school districts is more than $8.2 billion this year, about 25 percent of the state's almost $33 billion budget.

Many school districts have already begun cutting back, and there are concerns about how the funding crisis might affect the state's new school funding formula. Hearings on a court challenge of the formula by the state's 31 large urban Abbott districts begin in February and could result in more state aid to those districts.

"We put a freeze (on spending) as of Dec. 22 in anticipation of the budget developments," Egg Harbor Township superintendent Scott McCartney said Monday. "That's something we do every year, but usually not until January, when we look at the budget and ask if we didn't have to buy something so far, do we really need it."

McCartney said superintendents questioned Davy extensively about state funding at a New Jersey Association of School Administrators meeting last week, and many have already begun cost-saving measures.

Mainland Regional High School's school board will discuss cost-saving plans at tonight's meeting. Spending there has already been frozen and items such as conference trips have been canceled.

Both Egg Harbor Township and Mainland have set a goal of holding spending for next year at the same level as this year, but every district will also have to factor in such annually escalating expenses as salaries and health insurance.

Frank Belluscio, spokesman for the New Jersey School Boards Association, said boards recognize the economic realities facing the state and are pleased that the commissioner is taking the positive approach of working with districts to identify potential savings and possibly delaying mandates that might raise taxes.

"This is an economic reality we haven't faced before," Belluscio said. "The possible pre-K delay is not a surprise because even though it is important, it is such a big-ticket item."

E-mail Diane D'Amico: DDamico@pressofac.com