The Hudson County Schools of Technology is seeking to navigate an ongoing financial crisis by either raising taxes by an estimated $10 million or charge tuition to each individual local school district, county officials told HCV.
By Dan Israel/Hudson County View
Hudson County Executive Craig Guy said at Tuesday’s caucus of the county board of commissioners that they would be meeting with the HCST leadership yesterday to explain the financial predicament they are in, having met with all local mayors on Friday.
According to Guy, he hoped to have the results of the ongoing forensic financial audit of HCST’s finances for the board before today’s meeting. He said the audit was being conducted by a third-party firm after a recommendation from school board officials.
“It’s the obligation of the administration of the school to quantify and qualify the circumstances to what … the public is concerned about,” he said on Tuesday.
Guy also indicated that his administration was left in the dark until the issue was brought to light and the audit was initiated, calling for an explanation as to how things deteriorated to this degree.
“Until the administration was able to look under the hood of that school, these things were kept in the underbelly of the whole school district. If we, meaning the schools, can’t substantiate why we’re at where we’re at, then we need to deal with that,” he explained.
“But full transparency … the handcuffs were taken off the administration in that school and with the forensic audit … that is taking that step that says, ‘Listen, we work for the public and whatever is not doing well, well, we damn well better do better.’”
Guy acknowledged questions from electeds would be answered, already noting some passionate opposition against it by Commissioner Kenny Kopacz (D-1), also an assistant superintendent of schools in Bayonne.
Board Chair Anthony Romano (D-5) thanked Guy for the heads up after he had heard from others “how much of a hole that we were dug into.”
According to Guy, this budget issue is unrelated to the anticipated expenses increase due to health benefits. He is among an armada of outraged county officials looking for other ways to proceed forward, he added.
“What we’re presenting is not the answer: We have to come up with some solutions.”
“We have to tighten our belts. We have to figure out different ways of doing it … The transparency is the best thing,” expressed Commissioner Bob Baselice (D-9).
He further stated that the board had advocated for state funds to fill budget holes in past for themselves and sister agencies. He suggested the same approach this time, utilizing grant funds or whatever necessary to avoid municipal tuitions.
“Some of the municipalities are going to get double banged. We’re going to get hit with the taxes. If this goes through, get hit with this. And then some are not as fortunate to have the funding when it comes to Abbott districts. Abbott districts have the ability to put in place additional schooling and funding,” Baselice stated.
After the caucus meeting, Commissioner Bill O’Dea (D-2) told HCV that this was about charging the local school districts a tuition fee for every student that goes to any of the vocational schools.
He clarified that HCST wants to charge each board of education a specific individual dollar amount in tuition, which he said would be a major issue in Jersey City, since they lose roughly $18,000 per student, per year, in state aid.
O’Dea declared that under HCST’s proposal, that cost would increase by an estimated $6,000 per student, per year.
“It makes no sense. We have very serious concerns about this. We need to understand why this deficit is what it is. And are there other alternatives?” he said in the interview.
According to O’Dea, one of the reasons the district is in this financial predicament is because they didn’t pay medical bills for about a year.
He said that should not have happened and that the people responsible need to be held accountable, which he said also goes for those who contributed to Jersey City’s roughly quarter billion dollar budget deficit.
Additionally, O’Dea said that board is eager to see the audit as they continue to raise concerns and even legal questions around the proposed municipal tuition fees.
He said that while the law allows for it, there are questions over if the county schools meet the requirement by law to do so.
“We’re beginning a process, but I know that from the school’s perspective, they’re pushing this hard. We had thought they had come to an agreement not to do this for this particular year coming up in September,” O’Dea added.
O’Dea concluded that it doesn’t make sense to “punish” local school districts for what is akin to HCST’s fiscal mismanagement.
Regardless of the seemingly dire ordeal, O’Dea was optimistic that the board and Guy and HCST will work toward a better solution.
After yesterday’s meeting with HCST official, O’Dea said the district claims they have limited options to address their dire financial situation.
The first option, is for the county to raise taxes by roughly $10 million and the alternative is to charge tuition to the school districts, which would impact Jersey City to the tune of $6.8 million barring a significant increase in state aid, he added.
According to O’Dea, commissioners immediately raised questions over what expenses can be cut and why additional state aid can’t be secured.
He said it was unfair to the school districts to pay tuition fees because they receive no state aid for students who attend county schools, whereas they would if the student obviously remained in the municipality’s school district.
“It’s just going to come 100 percent from the taxpayers of Jersey City: Nobody’s giving us a plan about cutting staff or waste.”
O’Dea said the board wants to further discuss this in closed session at their meeting later today, but they are still determining if this issue falls under what can prompt such a session.
He said that also at the meeting, he will suggest that Romano allow Kopacz to take his place on the county board that will meet to set the HCST budget – including the proposal to charge the tuition fees – to allow for further dissection.
O’Dea believes that meeting is an important last chance to intervene on implementing the municipal tuition fees. He said that county officials believe that once that amount for HCST is set in the county budget, the commissioners can’t change that.
“If they meet and make that determination, short of just voting against the county budget, I’m not sure what other steps we can take at that point in time. But at this point, we’re still discussing it.”
HCST Superintendent of Schools Tom Macagnano did not return requests for comment.
The budget deficit, which is at least $11 million, first came to light in December when Guy and North Bergen Mayor Nick Sacco sparred over who caused the financial crisis to occur, with both officials calling for the state Attorney General’s Office to investigate.
Maybe dont let Stack have the schools and county as a patronage mill. How many people in the county are related to Craig Guy, that should tell you something.
And if this goes through, who is our next County Executive cause I hope everyone votes his a$$ out.
HCST needs to check how they’ve been spending money on unnecessary spending. Spending money a new girls bathrooms isn’t a priority when no real problem exists. And when you look at where it’s spent…🤦🏾♀️. To charge tuition will not set well for parents. Bad enough daycare is $$$. Money going into wrong pockets has been Jersey City/Hudson County’s problem for a long time.