BOE 2012-13 Budget Proposal: 1.25% Increase in Tax Levy

The Holmdel Board of Education presented a $51,926,347 million spending plan Wednesday. The introduced budget, which has been approved by the executive county superintendent of schools, would raise the tax levy by 1.25% according to the district business administrator.

If adopted by board vote on March 28, the owner of a home assessed at the township's average rate of $617,061 would pay $8,175.44 in school taxes, up $91.94 from 2012. School taxes account for 67 percent of the total property tax bill in Holmdel.

"The district is in great financial shape," said Board Member Mike Sockol, who serves on the Budget and Finance Committee. "And this budget is designed specifically to keep taxes low this year and next."

In a Powerpoint presentation to the board and a handful of residents, district Business Administrator Michael Petrizzo said the budget will include new technology equipment and infrastructure throughout the district, in part to prepare for new digital testing standards coming in 2013-2014. The old "fill in the bubble" tests are being phased out in favor of online testing and require new computers.

A new teacher trained to teach children with autism, as well as a special services monitor, have been added to the Village Elementary School staff, due to a state mandate.

And a new Spanish teacher will be added to the High School World Language program, to give instruction at all ability levels. Board President Barbara Garrity said the new teacher only costs the board $8,000 because the position will replace five part-time teachers.

Petrizzo said the budget tax levy was purposely kept below the 2% cap because the board is sensitive to the hardships in the local economy. Holmdel taxpayers fund 92% of the budget, projected to be $47,770,126 in the 2013 budget, up from $47,180,371 in 2012.

State aid, which accounts for 3.4% of the budget funding, increased by 96.4%. The district will receive $1,777,056 in fiscal year 2013, up from $905,006.

He said the spending plan reflects savings from "fiscally sound management and continued energy efficiencies."

The school board is waiting for more clarity from the township on its final obligation to Holmdel Township for a shared project to improve Bob Roggy field.  Petrizzo explained that the district initially put up $400,000 over two budget years, and the township used that as funding to get the project off the ground before it went to bonding. "We're still looking for what the final debt service figures are so we can account for our share," he said. The proposed budget does include for an estimated amount of debt service owed, he said.

Board President Barbara Garrity said the budget is under cap by $354,000, and was developed without using the $316,000 adjustment permitted under the cap to cover township health insurance costs. "It leaves untouched $944,000 of 'banked' cap from last year's zero increase which, as you may recall, passed along to voters the benefit of the 0% increase the Board negotiated with the Holmdel Township Education Association for this current year."

Two capital projects are on the horizon, said Petrizzo. Bid specs are being prepared for the replacement of the catwalk system in the high school auditorium so that lighting and alarm detectors can be replaced and maintained. Also, the board has made air quality improvement at Indian Hill School a priority, for both the benefit of the people there and for energy efficiencies. Replacing the aging Roggy Press Box, which has been condemned, is on the radar, but to a lesser extent, he said.

Unlike past years, there will not be a community vote on the school budget due to changes in state law. Boards of Education that voted to move their school board elections to November and keep their budget tax levy below 2% cap no longer need to hold public elections on the budget.

The board will accept public comment on the budget up through the budget hearing on March 28.

The budget presentation will be posted to the Holmdel Board of Education website.