In South Jersey, school districts are raising property taxes and considering cuts

With time running out, some New Jersey school districts are making cuts and raising property taxes to get their budgets approved for the 2025-26 year.

New Jersey changed how it calculated state aid to its more than 600 public school districts this year and that has further complicated an already difficult process.

The state said some towns like Collingswood and Washington Township in Gloucester County should be able to afford to contribute a bigger local share to operate their schools. That left deficits that districts have struggled to close.

Faced with budget gaps, some districts were allowed to seek state approval to exceed a 2% property tax levy cap that has been on the books since 2010.

According to the state Department of Education, nearly 300 districts are eligible for a new tax incentive. The subsidy is a one-time offer that could allow districts to raise additional revenues and avoid cuts.

In return for increasing the local tax burden, districts can get additional state aid for 5% of the amount of local taxes raised above the 2% cap.

How public schools are funded in New Jersey has been a contentious issue for years. But school officials say this year has been the most challenging in decades and have renewed calls for a more permanent fix to the funding formula that relies less upon property taxes.

In South Jersey, the state said 74 districts could apply for the tax incentive in order to provide a “thorough and efficient education” to their students. They include Moorestown, Rancocas Valley, Black Horse Pike Regional, Haddonfield, Deptford, Kingsway Regional, and Voorhees.

There are reports that some districts such as Evesham in Burlington County imposed double-digit property tax increases that will significantly increase the amount property owners pay toward schools. Others, like Camden, are laying off teachers, cutting positions, and closing schools.

» READ MORE: Cuts in proposed N.J. budget pose ‘undeniable challenges’ for some South Jersey school districts

The Washington Township school board approved a 7.13% increase to add $345 in taxes annually to a home assessed at the township average of $232,000. The move will raise $7 million in additional revenues.

Despite the increase, the district’s proposed $167.5 million budget calls for cutting 84 positions, mostly support staff. It also would eliminate middle school sports.

The board voted 8-1 last week against the spending plan, essentially disagreeing with how the funds would be allocated. An emergency meeting was scheduled for Wednesday night, the last date for districts to hold budget hearings.

“This increase is irresponsible, unsustainable,” board member Scott Laliberte said at a meeting last week. “What we’re doing this year is not going to fix the problem.”

Here’s what you need to know:

This year, the state limited any cuts in most funding categories for districts to a 3% reduction from last year, and capped any increase at 6%. More than two-thirds of districts would get more state aid under Gov. Phil Murphy’s $12.1 billion spending plan.

This was supposed to minimize the volatility that occurred in previous years when districts were uncertain how much they would receive in state aid.

The state also said it would change how it calculates funding for special education by using a district’s actual enrollment and allow districts to exceed the current 2% cap on property tax increases.

It was unclear how many districts were accepted. Some districts are still awaiting notification, said Collingswood school business administrator Beth Ann Coleman.

Coleman said Collingswood asked for a $6.4 million tax increase, but was approved for $4.1 million. The state rejected the district’s request to raise $1 million for athletics and its wellness center, she said.

“This puts a dent,” said Collingswood Superintendent Fred McDowell. “We’re still in a very precarious position.”

The state said information about the incentive program would be provided after the state budget is approved by the New Jersey Legislature in July. Not all eligible districts sought to exceed the cap.

The tax incentive is a one-time offer that could allow districts to raise additional revenues and avoid cuts. Typically, districts seek voter approval through bond questions to pay for projects that cannot readily be funded through their annual operating budgets.

The New Jersey School Boards Association said districts across the state have opted to lay off staff, increase class sizes, eliminate programs, cut transportation, and close schools.

“As is the case during any budget season, all options are on the table when a district faces a budgetary shortfall,” said Tim Purnell, the association’s executive director.

Cherry Hill, which was not eligible to exceed the tax cap, last week approved a $256.1 million budget that will increase property taxes by $179 on the average home. The district said it plans to cut 19 positions and reorganize its middle schools.

Collingswood approved a 29% property tax increase to close a $3.6 million budget gap. It will add about $1,200 annually for a property assessed at the borough average of $450,000.

“For us seniors, it’s a tough sell,” longtime resident Larry Di Giovanni said at a public hearing Monday night.

“This is a big ask,” said board member Megan Mikulski.

Without the increase, McDowell said, the district would have been forced to consider reducing as many as 35 positions and closing elementary schools. He called it “the nuclear option.”

The district asked the borough to contribute $225,000 to help reach an agreement with its teachers union, which has been without a contract for nearly a year and asked for a $222,000 credit to balance the budget.

Mayor Jim Maley said the borough would provide the funds.

“We don’t want another round of layoffs,” he said. “I want the damn teacher contract settled.”

The Haddon Township school board approved a 15% tax increase Tuesday night, said Superintendent Robert J. Fisicaro. It adds $702 annually in taxes to a home assessed at the township average of $455,000, he said.

Fisicaro said the tax increase was needed to help close a budget gap between $2 and $4 million. The district also cut five teaching positions and one administrative job, he said.

Districts face a May 7 deadline to hold public hearings and approve their budgets. After that date, the county school superintendent can take over the process and impose changes.