SOMERS POINT — The Somers Point School District has taken multiple steps to cut a budget deficit in excess of $1 million, cutting 11 positions districtwide, raising the tax levy 7.34 percent and hiking the tax rate by nearly 6.3 cents.
The Board of Education approved the district’s $20,423,360 budget for 2026-27 on April 30, calling for a tax levy increase to $13,023,322. That’s up about $1 million from the current spending plan, which called for raising $12.1 million in taxation.
The overall budget is up about $500,000 from the $19.9 million plan adopted May 1, 2025. The new tax rate is $1.18 on $100, meaning a homeowner will pay $1,180 on every $100,000 of assessment, an increase of about $156 annually on an average assessed home.
The budget includes a general fund of $16,776,665, special revenue fund of $2,539,251 and debt service of $1,107,444.
The spending plan includes a $648,080 adjustment for health benefits costs, allowing the district to exceed to 2 percent tax levy cap. The district will use $1.361 million in fund balance and a $100,000 withdrawal from the Maintenance Reserve Account.
According to a budget presentation, the district continues to be able to provide full-day preschool for 3- and 4-year-olds, including special education students.
Enrollment has dropped nearly 50 percent, from 1,092 students in 2010 to 580 last year, not including preschool. At the same time, state aid fell by more than $4 million.
This year, the district realized a 3 percent reduction in state aid, a 6.38 percent fund balance reduction and 33.3 percent bank interest loss. The district also faced in increase of $170,951 due to the loss of banked cap and a 15 percent drop in preschool aid equating to $227,645.
In addition, health care costs rose $648,080 and utilities costs are rising.
The district withdrew from the state health benefits program, saving $252,000 this year and about $1 million over three years, but costs still increased.
“Despite all these effort to balance the budget and provide our students with program and opportunities they deserve, we are still $449,083 below adequacy,” Superintendent Ted Pugliese said. “That means we are doing more with less than the state thinks we need to educate our students.”
Somers Point City Council approved its $21,775,398 spending plan that will boost the tax rate by 3.6 cents to $1.18 per $100 of assessed value. The owner of a $300,000 home would pay $3,540 in municipal taxes.
Mainland Regional High School approved its budget April 30. Somers Point would pick up the largest portion of the levy at $10.5 million, or 42.38 percent. That’s partially due to the bay-side city’s greater overall real estate value. The tax would jump $58.18 per $100,000 of assessed value.
– By CRAIG D. SCHENCK/Sentinel staff