Board of Education President Anthony Mancuso announced Thursday night that the will not be changed. He added that County Superintendent of Schools Kathleen Serafino could not reject the district's entire budget if the contract was not rescinded.

"Based upon the letter we received...Dr. Serafino has confirmed that the only line item that may be reduced pertains to the superintendent's salary,'' Mancuso read from a prepared statement at Thursday night's board meeting. "The legal implications of any reduction in this line item will not be fully known until the Department of Education reviews the board's budget and the court rules on the board's appeal.'' stated that failure to rescind Seitz's contract "would result in the disapproval by my office of any amount in the district's 2011-2012 budget that was included in that budget as a result of the board's continued failure to comply'' with orders to rescind the contract.

Mancuso seemed to interpret that as referring only to the line item regarding Seitz's contract. But according to Christie's press secretary, Michael Drewniak, who released Serafino's letter to the media on Feb. 24, the entire budget will be rejected if the board disregards Serafino. "It will remain unapproved until the Board rescinds the contract for Mr. Seitz,'' he wrote in an e-mail.

In response to questions from the public, Seitz estimated that only $5,000 a year would be witheld from his salary. "But we're in litigation and that's why it hasn't been discussed or settled," he added. He was referring to Gov. Chris Christie's new $175,000 cap on administrators in districts the size of Parsippany and his five-year contract, which pays $216,000 this year and $234,000 in 2015.

Board member Frank Neglia explained after the meeting that under the state rule, Seitz would be entitled to $5,000 above $175,000 because the district has two high schools. He would also be entitled to a 15 percent merit increase of his salary, which would bring his pay to $207,000.

In his statement, Mancuso said the board had met with the state department of education and tried to "mutually resolve the matter." But in order to settle, state required Seitz to renegotiate his contract.