PETERSBURG — The Upper Township Board of Education approved its $37,339,800 budget for 2023-24 on April 24 with a 2.3-cent tax rate increase, about a month after Township Committee adopted its budget with a 2.8-cent hike.
According to a presentation by Business Administrator Laurie Ryan, the school tax rate would increase to $1.46 per $100 of assessed value, or $66 more per year on the average home assessment of $287,222. Last year, the $38,732,225 spending plan required an increase of 2.2 cents.
The budget calls for a 2 percent ($540,200) increase in the tax levy, what the district collects from residents, to $27,550,179. That is the maximum increase allowed by law without voter approval.
Ryan said the district was prepared to lose $700,000 in state aid this year but found when the figures were released earlier this month that it had lost $1.3 million, a drop of 22.5 percent from $6 million in 2022-23 to $4.65 million for 2023-24. The district has lost $5.76 million since 2017-18 under the Student Funding Reform Act.
However, the state Legislature approved a supplemental funding measure that returned $102 million, or about two-thirds of the $157 million that was cut statewide, to school districts.
Upper Township is eligible to get back $937,275 from what had been cut, but first had to submit a written plan to the state education commissioner by May 1 explaining how they would use it and how they will operate in future years without it.
To help balance the budget, the district would use $250,000 from its tuition reserve to pay $237,000 owed to the Ocean City School District, $674,903 from its maintenance reserve and $1.13 million from its capital reserve.
Ryan said the big-ticket items in the budget are $19,478,292 in salaries and $4,821,855 in benefits for employees, $9,830,188 in tuition, $2,499,670 in transportation and $1,140,431 in construction.
Construction projects included in the budget involve HVAC work and replacement of leaky block windows at the primary school, security upgrades at all three schools, painting, roof tile replacement and concrete work.
Ryan said the district has applied for grants to fund the work and if successful would be able to replenish its capital reserve.
Cuts planned for preschool salaries and benefits — Ryan said one class/teacher would have been eliminated — technology, summer enrichment and security would not be necessary.
Township Committee
Township Committee approved its $15,798,320 budget March 27 with a 2.8 cent tax rate increase.
The 11 percent increase raises the tax rate to 28 cents, resulting in an average bill $80 higher. Last year the tax rate increased 3.3 cents to 25.2 cents per $100 of assessed value, or $93.50 for an average-assessed home.
Combined, the proposed increases amount to 5.1 cents, or $51 for each $100,000 of assessed value. The owner of a home assessed at the township average of $287,222 can expect an increase of $146.
By CRAIG D. SCHENCK/Sentinel staff