The opinions expressed in this article are my own personal opinions and not necessarily representative of the Teaneck Board of Education. All the mentioned figures are in the public domain. Sources can be provided upon request.
I am writing in response to recent decisions by the BOE to eliminate and then reinstate funding for courtesy busing. The decision to eliminate courtesy busing was based on the opportunity to reduce non-instructional discretionary expenditures. It was reversed after learning more about the parental and student challenges associated with its elimination.
As background, the average property tax bill in Teaneck is $11,340, representing 8.6 percent of the average household income of $132,043—among the highest in the nation.
1.Courtesy busing
A cost savings of $301,671 was expected from the elimination of non-mandated courtesy busing for grades 1-4 living 1.4-2.0 miles from their school for nearly 400 public school and non-public students, the latter accounting for 5 percent of the total. Other savings, through the elimination or outsourcing of 14 positions, totaled $1.1 million.
The total student transportation budget, excluding courtesy busing, is $4.9 million, with special education spending of $2.8 million, non-public school: $1.6 million, and non-special education public school: $0.5 million.
2. Challenges of 2016/17 budget management
The proposed reduction in courtesy busing followed a multi-year effort by the BOE to reduce non-instructional and administrative costs including the outsourcing of paraprofessionals and night shift custodians, a step that reduced annual expenditures by $7+ million per annum; employee attrition; and the reduction of other discretionary expenditures.
In addition, the budgeted fund balance (“rainy day fund”) was nearly depleted before rebounding last year to pay for operating expenditures exceeding the 2 percent cap.
Special education costs inclusive of salaries ($11.8 million), out-of-district tuition ($8.6 million), transportation ($2.8 million), extraordinary services—OT/PT/speech ($2.4 million) and other ($0.5 million) total $26.1 million, or 27.8 percent of the total budget.
Salaries account for $45.1 million, whereas benefits account for another $13.4 million (medical $6.9 million, prescription $2.4 million, dental $0.7 million), and other employee benefits such as sick/vacation/personal day reimbursement upon retirement: $0.6 million, pension contributions for selected employees: $1.1 million, and FICA/unemployment/workmen’s compensation/disability: $1.7 million. Benefits represent 29.7 percent of salaries, a far higher percentage than the private sector.
3. Resource allocation essential
The key to sustainable BOE (and municipal) spending and a moderate level of incremental taxation is resource allocation. The fundamental resource allocation decision for the BOE (and municipality), as mentioned, is salaries and benefits. Periodic negotiations allow for a re-basing of expired agreements. It also allows for the consideration of outsourcing of non-essential services. Expenditures can be reduced via the judicial use of outsourcing without the sacrifice of service quality.
Negotiations are ongoing with the Teaneck Teachers Education Association (TTEA); an impasse has been reached that will lead to the appointment of a mediator. A few background facts:
a. The total cost per student is $27,246. The normalized budgeted cost per student is $20,071, ranking 102/103 districts in Bergen County.
b. Salaries represent 48 percent of the 2016/17 projected expenditures. The median (midpoint) salary of a Teaneck teacher is $81,583, ranking 98/103 in Bergen County and 27/671 in NJ. Annual raises of 4-6 percent are embedded within the contract for teachers with 5-13 years of experience.
c. Employee benefits, as a percentage of salaries, is 29.8 percent, or another $24,312 for a teacher earning the median. This includes medical, prescription and dental coverage, as well as other contributions. TTEA members only have a $10 co-pay, with the cost of family coverage exceeding $30,000—to which the employee contributes 26 percent.
d. Upon retirement, TTEA members receive a contracted “bonus” for unused sick, personal and vacation days of $35-50,000 each or $580,000 in FY16/17. That is the equivalent of a 1.5-2.0 percent raise per year for each teacher at taxpayer expense.
4. Educational achievement is more than just spending.
A strong public school system is essential and benefits all residents. The BOE has attempted to preserve instructional resources as best as possible. However, it remains hampered by civil service requirements and union “rules” such as tenure; automatic pay increases/no pay for performance; budget-related layoffs based on teacher seniority and not quality; the near-impossibility of firing “bad” teachers due to the appeal process and associated costs, inclusive of potential litigation; and other factors.
Another critical factor in student performance is parental engagement. Development in the early years is clearly affected by cognitive stimulation. Non-cognitive skills or character strengths, described by Paul Tough in the book “How Children Succeed” as resilience, conscientiousness, optimism, self- control and grit, are also an important determinant of success.
Bottom Line
Courtesy busing has been restored. Monies will be found. The core financial issue affecting the BOE is resource allocation and the ongoing TTEA negotiations; more for its members implies fewer resources elsewhere for ancillary services and activities. In total, adequate funding exists, but the question is a function of prioritization, allocation and leadership. It’s also about efficiency (productivity) and effectiveness (outcomes), factors inadequately measured in the public sector.
Teaneck residents are already over-taxed. More can be done with less.
By David Gruber
David Gruber is a trustee of the Teaneck Board of Education. He can be reached at [email protected].
