RFH Board of Education Approves Budget with 1.11 Percent Increase

The Board of Education from Rumson Fair Haven Regional High School passed the tentative budget at their meeting on March 29, 2011.

“This year was a very positive year for us,” said Frank Gripp, the high school business administrator. “While other school districts are having a difficult year, we are able to maintain a fantastic program with only an increase of 1.11 percent.” 

The total tentative budget including general fund, special revenue and debt service is $17,225,797. The tax levy is $15, 056,632, which is $165, 095 more than the 2010-2011 school year. This increase is “far below the 2 percent gap,” said Gripp.

Superintendent Peter Righi said he is very proud of the budget they have developed. “This 1.11 percent increase in taxes is the lowest in well over a decade,” he said.

The tax rate for Rumson residents will decrease by $1.41 per $100,000 of assessed property value. So if your home in Rumson is assessed at $500,000, you will see a decrease in overall taxes by $7.05. Fair Haven residents will see a tax increase of $10.92 per $100,000 of assessed property value.  That means that if your home in Fair Haven is assessed at $500,000 you will see an increase of $54.59.

The reason that Fair Haven residents will see an increase and Rumson residents will not is due to a complicated formula developed by the state. The main components of this formula are home value and student population. Because the assessed value of homes in Fair Haven has increased, so has their funding responsibility. 

“If you go back in the past 10 years, Rumson has gone up more than Fair Haven and vice versa,” said Sarah Maris, RFH board member. “It’s kind of a seasaw effect.”

In the 2010-2011 school year, the funding was split 27.86 percent by Fair Haven and 72.13 percent by Rumson. That school year, 447 students came from Fair Haven and 520 students came from Rumson. In the 2011-2012 school year, Fair Haven will be responsible for 29.19 percent and Rumson will pay for 70.80 percent. For the upcoming school year, 455 students will come from Fair Haven and 487 from Rumson.

While the residents pay for 96.5 percent of the budget, there are other forms of revenue. After receiving no state aid last year, this year the district is very happy to receive $162,071. Other forms of revenue include tuition students, use of reserves from the current school year and transportation.

The district also relies heavily on Athletic, Education and Arts foundations to help support their fabulous programs. “They have been very generous in funding some of our programs that are not funded by tax dollars,” said Righi.

The district is also finding creative ways to save money. “We did not fill many positions that opened up through attrition,” said Righi. A supervisor, administrator and teacher all retired within the past year, whose positions were not filled with a new member. They also keep curriculum changes on a 5-year cycle and use many shared services and “continue to look for shared opportunities,” said Righi.

Overall, the board is very happy with the budget they have developed. “It is an accomplishment that I will say that most districts and the county and the state can not be given the same accolades,” Donald MacNeal, president of the RFH Board of Education.

 Residents can vote on the budget on April 27, 2011, from 4 p.m. to 9 p.m. at their regular polling locations.