NUTLEY, N.J. (PIX11) -- A state monitor is now in place in the Nutley Public School District to correct the financial mismanagement that’s left a multi-million dollar shortfall in the current budget.
According to the Nutley Board of Education, the state is providing a no-interest loan to cover the $7 million shortfall for the current year.
The Board of Education says it’s trimmed unnecessary expenses, increased efficiencies, and reconfigured administrative roles to ensure the budget is balanced next year. Parents fear teachers will pay the price for the mismanagement.
“We’re angry,” said mom Lauren O’Reilly. “A lot of teachers that we know and support and love have recently been let go based on performance when we know that performance is not the issue here.”
The district said support services for special-needs students - including paraprofessionals and transportation - will remain unchanged.
The state monitor will oversee and guide the budget before it is due to the NJ Department of Education on May 15. A forensic audit will also take place.
The district’s business administrator, David Dipisa, remains on administrative leave. A search for a new, full-time business administrator will begin later this week.
State monitor Jeanette Makus said at Tuesday night’s budget meeting that it appears Dipisa withdrew money from the maintenance reserve account and used it for other areas.
“As a result, the budget was over expended but it didn’t show,” said Makus. “Well now, the reserves are gone. There’s no place to pull the money from. And what has resulted is what exists today.”
Parents question how the Board of Education did not spot a problem sooner.
“They have a lot of power, business administrators,” said Donna Ferraro, a Nutley resident and parent advocate. “And I think that’s just what happened. That maybe they weren’t watching enough.”
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