PETERSBURG — The continued loss of state aid once again has the Upper Township School District asking taxpayers for more money, but a bill moving through the Legislature may ease the burden.
The Board of Education voted March 20 to send the 2023-24 budget to the executive county superintendent following a presentation by Business Administrator Laurie Ryan.
The $36,682,622 spending plan 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. The tax rate would increase 2.3 cents per $100 of assessed value to $1.45. The increase would be $66 on the average home assessment of $287,222.
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.
Ryan said in addition to the aid cuts under the reform act, the district’s equalized valuation increased $387,280,988 to $1.899 billion.
“That means the state believes the taxpayers can afford to pay more of their fair share,” Ryan said.
To help balance the budget, the district would use $250,000 from its tuition reserve to pay $237,000 owed to Ocean City School District, $955,000 from its maintenance reserve and $1.13 million from its capital reserve. She warned the board that those funds would soon be depleted if not replenished.
Ryan said the big-ticket items in the budget are $19,285,405 in salaries and $4,796,895 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 include preschool salaries and benefits (Ryan said one class/teacher would be eliminated), technology, curriculum software, professional development, summer enrichment, counseling services and facility projects. Ryan said the counseling was funded through a federal grant that has been used up.
There may be some help on the way. The state Senate approved a bill Monday that would restore $102.8 million and provide a one-time payment to districts that are losing funding for the 2023-24 school year.
The Assembly Education Committee was expected to meet March 23 to discuss its companion bill.
According to the bill, about two-thirds of the $157 million that was cut statewide would be restored. The legislation would provide 65 percent of the aid that was lost by districts earlier this month and would be considered adjustment aid in the school funding formula.
Ryan said the district would get back about $937,000.
Board President Michele Barbieri thanked the Upper Township Education Association for holding a letter-writing session March 13.
“Everyone pulled through together for a great email, phone call and letter-writing campaign,” she said. “I’m very excited that a lot of legislators from throughout the state responded to us and heard our concerns.”
“Upper Township’s voice certainly was heard and I really appreciate everybody’s help with this,” Superintendent Chris Kobik said, noting the UTEA was active on the issue before the NJEA.
Kobik warned the board, however, that “this one-year, half a Band-Aid is all we’re going to get. Next year we are going to face quite a few challenges again.”
He said if the district receives more aid, it would be able to avoid some cuts, starting with preschool, the summer enrichment program and a technology-replacement program.
Kobik said unless the state funding formula is overhauled, the district eventually would have to seek more money from the taxpayers via a voter referendum. “We need to continue to be active to minimize the future impacts from budget cuts,” he said.
By CRAIG D. SCHENCK/Sentinel staff