BOE Adopts $51M Budget; Calls for Zero Tax Increase

The Holmdel Board of Education adopted a $50,711,869 school budget supported by a $47,180,371 tax levy at a meeting Tuesday evening.

The spending plan calls for no tax increase in the school tax rate for residents. 

Over 100 people crowded into the Satz Intermediate School Library for the meeting, filling every seat, standing between bookcases and filling doorways. Many had come to support the 13 township bus drivers, whose jobs will be outsourced in the new spending plan to allow the board to achieve a flat tax rate increase for residents.

During public comments, the board listened to comments from the drivers' union president and parents of special education students and very young chidren, who spoke out in gratitude for the loving care the drivers had shown their children.

Their union representative, Denise King, spoke forcefully to the board, urging them to reconsider their decision before the vote. 

"My numbers are still not adding up to your numbers," said King. In recent salary talks between the HTEA and board, King said that the issue of outsourcing bus drivers had never come up. King noted that their experience was valuable to parents of special needs students, that paying for their unemployment would be costly, and that there were safety concerns with private company drivers.

The members listened respectfully as several other parents came to the microphone to make emotional pleas. During a break prior to the board's actual vote, nearly everyone in the crowd left. "They've already voted," grumbled one of the drivers wearing the blue fleece jackets, on her way out the door. 

After the meeting, Board Business Administrator Michael Petrizzo said his satisfaction with bringing forth a budget with no tax increase was tempered by his compassion for the drivers.  "It's tough, because of the impact on them," he said. 

Petrizzo said it will be the board's challenge to get voters to the polls. "Even with a zero tax levy, it still means people need to come vote on the budget," he said. 

The budget is a .3% reduction from this year's plan. Savings were achieved through shared services with the township for parking lot paving, a favorable HTEA contract settlement that calls for no salary increase in 2012, ongoing energy efficiencies in the facilities and the discontinuation of in-house bus service in favor of outsourcing. 

Previously, the board had spoken of a 1.5 increase, but had since found savings through bus service outsourcing. The plan was explained in detail at the State of the District presentation on March 16. The presentation can be seen here. 

Nearly 81 percent of the 2012 budget is set aside for salaries and benefits. Salaries increased by .1 percent to $32,435,431, due to negotiations and impact of removing 13 bus drivers and 4 aides from district payroll. Employee benefits were reduced by .5% , to $8,519,285, due to the new transportation plan, and the impact of 1.5 percent employee contributions to their own health care.

Transportation expenses will increase 26.8%, as the district will pay for the bus routes through outsourcing. But insurance costs would decrease 14.9 percent because the district would not have to insure the transportation vehicles. They would also sell off the fleet of 14 vehicles for a $250,000 savings.

Utilities are decreasing 8.5%, to $1,843,956, due to the aggressive energy conservation efforts.

The budget includes a plan for a new computer lab at the Satz building, and the removal of a wall in one of the high school pod classrooms, to enhance instruction. These changes require a 7.6% increase in spending, to $1,168,118.

A 20.6 percent decrease in lease obligations line item, down to $423,234, is due to 2005 debt service coming off the books.