Vernon school district approves budget

VERNON — Vernon Township Board of Education unanimously approved a $67.8 million budget for 2016-17, giving taxpayers a $1.8 million reduction in the tax levy.
The reductions mostly from the decrease in student population, which the district predicted will decrease by 111 students to 3068. With fewer students, some expenses go down, such as transportation, which was reduced by $275,000 and salaries, because as teachers retire, they are either not replaced or replaced by teachers at a lower salary, saving the district more than $400,000. The district also let several teachers go, including one teacher at Rolling Hills Primary School, three teachers at Walnut Ridge Primary School and one teacher at Cedar Mountain Primary School.
There are a few positive reductions as well. The line item for outside tuition, which covers the cost of sending students to out of district schools, has been reduced as the district brings more special education students back into the district. The district is also relying on fewer outside consultants for the child study team, reducing the budget by $59,383.
Another area of savings is facilities and maintenance. When the solar panel systems come on line at Loundsberry Hollow Middle School, the district looks to save at least $30,000 per year in energy costs. The district is waiting on the certificate of approval from the town for the project, but expects it will be up and running by late May. The board chose to apply some of its capital reserve to facilities projects, which will save the district more than $200,000 in 2016-17.
Of course, where there are decreases, there are also increases. The only one of note was in health benefits, which increased by 6 percent. This increase could be much higher, according to Kepnes, but it is offset by the contributions of the staff, which are increasing incrementally over the next 5 years, as well as the decrease in staff. Regardless, the district is shopping around for a new health insurance plan to see if a decrease can be found. The total cost of benefits is increasing by over half a million dollars next year, according to Kepnes.
Even with these increases however, the tax levy has still decreased. For the 2015-16 school year, taxpayers paid $39 million, and for the 2016-2017 school year, it will be $37.7 million. This is a 4 percent decrease. The district's state aid has stayed level at $25 million.
For the average taxpayer, this equals a 4 cent decrease in the tax rate, from 1.555 to 1.515. With an average assessed home value of $217,431, a taxpayer paid $3,421 in 2015-2016 and will pay $3,294 in 2016-2017.
The total assessed value of the housing in the district has decreased every year since 2010, a fact that worries board member William Higgins. He fears that this loss in tax income, paired with the ongoing threat of reductions in state aid, will lead to more dramatic losses in income for the future.
“If this happens next year, the cuts we made this year will pale in comparison,” he said.
Board member John McGowan, in his last year on the board, commented that he was happy that progress has been made towards more responsible spending, saying that up to this point, the budget had been rising while enrollment was falling.
“This year's budget has been a marvelous success but I know there is a tremendous amount of work to be done,” he said. “We have to plan to control spending with a tight budget.”
Board president David Zweier pointed out that Vernon has made some significant progress, especially in comparison to neighboring districts, who increase their spending up to the 2 percent allowed each year, while the Vernon Board of Education has reduced its budget every year over the last several years.