Tax levy to rise 8 percent
PETERSBURG — Funding for courtesy busing, sports, clubs, security guards, mental health counseling, computers and a small number of staff members is back in the school budget for 2024-25, but so is a hefty tax levy increase.
“I am grateful that we have a way to provide students with the things they need. I wish the state would do the work to figure out the funding formula so we didn’t have to rely on the taxpayers,” Superintendent Allison Pessolano said.
The Upper Township Board of Education held a public information session June 6 to discuss its budget situation after getting some relief from the state.
Gov. Phil Murphy signed two bills May 14 that established a Stabilized School Budget Aid Grant Program to provide grants equal to 45 percent of a district’s state aid reduction for 2024-2025. The bill appropriated $44.7 million to support the program.
In addition to providing supplementary state aid, the legislation allows certain districts experiencing reductions to request increases in their adjusted property tax levies in excess of the 2 percent cap to as much as 9.9 percent.
According to Pessolano, the board voted the same evening to increase the tax levy 5.41 percent more than the 2.59 percent approved in April to a total of 8 percent. That raises an additional $1,490,916 for the district.
The amended spending plan includes an operating budget of $38,385,721 and tax levy of $29,754,193, up $2.2 million from 2023-24. The new tax rate will be $1.56 per $100 of assessed value, meaning the owner of an average assessed home worth $288,000 will pay a total school tax bill of about $4,500.
The district used the grant, a total of $288,390, to purchase Chromebooks for each student and the excess taxes to return some of the items that had to be cut under the budget approved in April.
The district cut nine teaching staff positions and its security officers, as well as eliminated all of its kindergarten aide positions, after-school clubs and sports and courtesy busing.
With the increased funding, it is able to bring back courtesy busing, middle school sports, elementary and middle school clubs, busing to sporting events and summer enrichment, security guards, mental health counseling, new math resources, two elementary school basic skills teachers and some kindergarten aides.
Administrators could have raised the tax levy by as much as 9.9 percent, according to information provided at the meeting.
Pessolano said the administrative team and school board discussed how much to increase the tax levy at length.
“While it would have built up our tax base even more for the long run, we didn’t feel the need to go to the full 9.9 percent based on what we felt were the priority programs and staff to bring back,” she said. “What we are trying to avoid, because we do not know what state funding will look like next year, is bringing back anything that could be subject to elimination again next year.”
Since 2016-17, under the Student Funding Reform Act of 2018, the district has lost $5,986,469 in state aid, down from $10,131,084 to $4,144,615.
“The state gave us back a small amount this year, but it doesn’t come close to the total we have lost as an S2 district. However, the students remain the most important factor in all of this, so being able to provide them with what they need is a priority,” Pessolano said.
Superintendents and school districts across the state annually have to deal with a volatile spending situation, with little time between the announcement of aid amounts and the deadline for submitting budgets.
Pessolano said there is talk about bringing back “guardrails” that would give districts a better idea of where their state funding will fall each year, rather than having to guess.
“Whether this will happen, we do not know,” she said. “The issue continues to be increased costs across the board: salaries, benefits, transportation, special education and more. While our costs go up, state funding does not. The solution cannot be to put the accountability on the taxpayers, especially when the funding formula is so unclear.”
She said it appears there is a groundswell of support in the Legislature for taking a hard look at the funding formula.
“I will just continue to remain hopeful that we will not have to experience what we did this year and that we will be able to continue to provide the best for the students of Upper Township,” Pessolano said.
A public hearing and final vote on the amended budget are planned for 6:30 p.m. June 24 at the Middle School media center, 525 Perry Road.
– By CRAIG D. SCHENCK/Sentinel staff