Council cuts school tax increase in half
Helmetta voters have defeated school tabs for past six years
BY BRIAN DONAHUE Staff Writer
By voting down the school budget last month, Helmetta residents paved the way for the tax rate hike to be cut from 4.2 cents to roughly 2 cents.

The Borough Council responded to the April 21 budget defeat by ordering a reduction of $50,000 in the 2009-10 school budget, and the Board of Education accepted that cut on May 19. The money will come from the school board's free balance, which is essentially a surplus account.

The school board had proposed a $4.39 million budget that included a tax increase of nearly 4.2 cents per $100 of assessed valuation. That would have raised taxes by $115 for the owner of property assessed at the borough average of $273,784. The cut means the school tax rate will instead go up by about $55.

Residents voted 75-29 to defeat the budget in the annual school election. Mayor Nancy Martin said she viewed the election outcome as residents saying the tax increase was too much, especially in this climate.

"With the economic situation, we felt it was in the best interest of our residents to keep the budget, both school and municipal, as trim as possible. Cutting 2 cents off the school budget was important to the council to help maintain as stable a tax rate as possible," Martin said.

School Business Administrator Brian Savage said the school board's free balance is left with approximately $100,000 after the cut, though he did not have the exact number.

"It's definitely lower than I want it to be, but I think it's an appropriate level," Savage said of the account, which he likened to "a rainy day fund." He said the free balance is kept in case of emergency expenditures such as if an unbudgeted student moves to town who requires an out-of-district placement or special education. "And that can happen very easily," Savage noted.

The school budget, which was proposed to increase by about 1 percent over the current school year, includes about $3.95 million for regular education and out-of-district placements. Regular education costs are budgeted to increase by $67,000, while special education is going down $24,000.

Helmetta, which has no schools and sends all its public, regular education students to Spotswood, anticipates paying for 281 students this fall, a decrease of 17 from the current year. The budget also includes $349,128 for transportation.

Voters have rejected Helmetta's school budget in each of the past six years, despite the fact that a reduction in taxes was proposed for one of those years. Last year, the mayor and council cut $70,000 from the 2008-09 budget, bringing the proposed $180 average tax increase down to $104. The $70,000 in cuts came from both the free balance and summer school transportation, which is not a mandatory expense.

Defeating the school budget is not always a guarantee that it will be cut. In May 2007, Helmetta's mayor and council opted against cutting the tab, which was rejected by just a five-vote margin, 38-33. The school board had proposed a stable tax rate, and the council responded by issuing recommendations designed to save the school district money, including ways to ensure that all students being funded reside in Helmetta.

The borough's three-member Board of Education re-elected Joanne Carroll as president during its reorganization meeting in late April, and Francine Wheary was sworn in to her first term, which will run for three years. The other board member is Lou Adornati.

Though there will be no school tax increase, Helmetta residents are expected to face a slight municipal tax hike this year. The Borough Council has proposed a 2009 municipal budget that would bring the tax rate from 44.3 to 45.1 cents per $100 of assessed valuation, a $22 increase on the average home.

School and municipal taxes are two components of a homeowner's property tax bill, which also includes county, open space and other assessments.