As was the case on the municipal side as introduced by the mayor and council last month, the board of education has laid a school budget that is asking for a more than desirable contribution from taxpayers to support it.

Last week, the board laid out a $10.45 million budget that needs $9.65 million to support it from taxation. To the average assessed homeowner in the borough, one owning a house valued at $200,000, it would mean paying an additional $110.95 over what they paid last year, or 5.9 percent more in school taxes. The total average school tax bill, if passed through by voters on April 15, would be $1,978. This comes one year after only a $54 more contribution was asked of taxpayers.

Interim Superintendent Ray Albano said the budget is one of maintenance, not eliminating any programs from last year, but not adding any either. According to Business Administrator Barbara Francisco, a new textbook purchasing program for grades six to eight is the only new endeavor the district is pursuing this year while they must hold off until 2009-10 to begin implementing one for the lower elementary grades.

Still, rising costs in employee health benefits, special education funding and salaries are all contributing to the rise. In particular, enrollment increases at the new school are also a driving factor. This upcoming school year, officials project a fall enrollment of 579 students in-house compared to this past fall’s 568 students. Since 2004, if the amount is on target this coming year, the amount of students attending the school district would increase by 75 students in the five-year span.

"Basically, when you have a new facility like you have here, brand new, state-of-the-art, it’s an attractive piece for people that are looking in the area. The schools and facilities are probably one of the single most driving factors for people when determining where they are going to buy a house or where they are moving," said Albano. "The old adage of build it and they will come, we built it, it’s here, it’s a wonderful facility and they are coming and probably will continue to do so."

The result has forced the board to raise anticipated appropriations of regular program support by $156,000. In addition, state mandate has imposed districts to fund 60 percent of pension contributions for district employees. The employee benefit contributions are rising $154,212. Both increases are coupled with another significant loss of revenue that was realized this year in unexpended fund balances that gave the district over $600,000 to apply toward the budget. Next year, the fund balance is $464,000 less, leaving the most significant gap to fill by taxation.

"Last year, we appropriated money to reduce the tax levy $200,000 and $400,000 to enter an agreement with the borough to renovate the property located on the north side of the school," said Francisco. "That was interest earned on the bond proceeds prior to the expenditures for the construction project. As the bond money gets spent, there is less money available to earn interest."

While most other local districts are celebrating a windfall of new state aid following the passage of a new state funding formula, Carlstadt’s per pupil spending was deemed efficient, therefore, the district was entitled to the smallest aid percentage increase under the formula’s threshold. The two-percent aid increase amounted to only a $9,000 bolster to aid.

"This is the first time state aid has increased in four to five years; against a $10 million budget, it’s no significant increase and I don’t expect that number to change in the next couple of years," said Albano.

Coupled with the proposed tax hike on the school portion, residents will have to grapple with what was proposed on the municipal side last month. Officials, hoping proposed state aid cuts won’t be accepted by the legislature as laid out in Governor Jon Corzine’s proposed 2009 fiscal year budget, have compiled a municipal budget using the same aid figures as last year. At that amount, borough taxpayers can still expect an approximately 6.5-percent increase in municipal taxes over last year, an increase of $180 to the average assessed homeowner. If Corzine’s plan to cut $200,000 of state aid to Carlstadt is passed, then the average assessed homeowner’s municipal taxes would rise $220 or eight percent more than last year, giving the average assessed homeowner in Carlstadt a municipal tax bill of $2,958.

The school budget approval process by voters has stood on shaky ground in the past two years. In 2006, the budget was voted down by only 20 votes, prompting the mayor and council to cut it by $56,000. It still resulted in a 17-percent tax increase to the average assessed homeowner, particularly because it was the first budget that included the $1.6 million debt service from the new school. Last year, the budget that raised taxes only three percent narrowly escaped, having been passed by a margin of only 10 votes.

Total budget: $10,449,111

Total Tax Levy: $9,649,076

Average Assessed home: $200,000

Increase on average assessed taxpayer: $110.95 or 5.9%

Average school tax bill: $1,978