Nutley Board of Education Announces Funds For Budget Shortfall Received; New Business Administrator Hired

NUTLEY, NJ - The Nutley Board of Education reported on June 17, 2024, that funds to cover the district’s $7 million shortfall have been received from the New Jersey Department of Education.

Superintendent Kent Bania said the NJDOE is loaning the district the funds to cover this year’s budget shortfall by providing a zero-interest loan to be paid back over the next 10 years.

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On June 11, 2024, Bania, along with several members of the Nutley BOE, as well as Jeanette Maskus, previewed the June board agenda resolutions, including special education provider contracts, professional service reappointments, and grant monies received. Maskus was appointed by the NJDOE in May to assume fiscal control of the Nutley Public School District as a monitor.

The Nutley Board of Education announced they were facing an audit of finances in March, revealing a whopping $7 million shortfall.

“Most importantly, we will ensure that our most valuable resource, our children, continue to receive - and that our teachers continue to provide - the highest quality education our township is known for and that our residents have come to expect,” the board addressed in May.

An independent investigation conducted in February 2024 by the NJDOE, District Auditor’s Lerch, Vinci & Bliss, as well as the District Administration and Nutley Board of Trustees, highlighted several factors for the deficit’s fiscal year of June 2022 to June 2023, revealing a reduction fund balance of $9,014,534 to $2,239,806.

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Key revenue shortfalls from 2023-24 included rents and royalties ($487,739), unrestricted miscellaneous revenues ($1,190,567), fines and forfeits ($227,725), and transfers from other funds ($248,876) which resulted in -$2,154,907. Key expenditure overages for 2023-24 include projected shortfalls to general funds such as tuition to private school for the disabled, legal services, audit fees, insurance, natural gas energy, electrical energy, salaries, contract services, and vendors, social security contributions, other retirement contributions and health benefits resulting in -$5,088,378.

A Corrective Action Plan, also known as CAP, was put in place to address the board’s areas of budget creation, oversight, internal controls, use of external resources, as well as monitoring and reporting. In May, the NJDOE approved the district’s request for a State Aid Advance Loan to cover the current year’s shortfall.

In financing terms, this will be a zero-interest advance loan over the span of 10 years.

Repayment on this loan will begin in budget year 2025-26, and the total amount of advance loan pending state review of cash flow.

Nutley BOE Announces New Business Administrator

In May, the board announced that an acting business administrator had been appointed.

On June 17, the Nutley BOE walked through the process and steps they took in order to hire a new business administrator for the school district.

“We posted for a business administrator in early May, and it was open for three weeks,” Bania addressed. “We received 10 applicants, seven which had the appropriate experience and certificates.”

Bania said that all seven applicants were screened with a phone call and their resumes were shared with Maskus, who helped to screen the candidates in their first round of interviews. This was composed of a variety of stakeholders from around the community and district, according to Bania.

The process was then narrowed down to three applicants who stood out based on their resume, conversation, as well as audit reports from other districts. One applicant rescinded prior to this interview. The two remaining applicants stood before a panel and answered a series of questions.

“It was clear which individual stood out,” explained Bania, further saying this candidate was moved to a second round of interviews where they are then asked a series of scenario-based questions.

Then round three came.

“From there, the candidate met the entire board and went and went through the process of vetting with each board member, having the availability to ask questions and move through with this candidate,” said Bania.

Related Article : New Nutley Public Schools Business Administrator to Start Aug. 19

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