No staff is cut under this budget, which would cost average property owner extra $116
PETERSBURG — The Upper Township Board of Education introduced its budget March 18, calling for a 4-cent increase to the tax rate to $1.587 per $100 of assessed value.
The owner of a home assessed at the township average of $290,248 would see a school tax increase of about $116 to $4,606 for the year under the $41,388,497 spending plan.
Township Committee introduced its budget March 10 calling for a 2.9-cent rate hike. The $45.6 million spending plan includes a tax levy of $6.2 million, up $594,384.
The municipal rate increase boosts the township rate to 32.3 cents per $100 of assessed value, or $323 on each $100,000. The owner of an average assessed home would see a municipal tax bill of $937.
There also is an 11-cent fire district tax rate that amounts to $11 on each $100,000, an open space tax and others.
The Cape May County Board of County Commissioners introduced its $224 million budget Feb. 25 with a tax rate reduction of 1.9 cents to 16.9 cents, a decrease of $190 on each $100,000. The rate has fallen steadily since 2021, when it was 23.4 cents.
Therefore, Upper Township residents are facing a tax rate increase of 5 cents per $100, or $50 on each $100,000, and a total tax rate of about $2.189 and a total tax bill of about $6,354, and increase of about $145.
Business Administrator Laurie Ryan outlined the school budget, explaining that the district has three funding sources: taxes, state aid and reserves.
She said the overall budget is about $1 million higher than the previous year but includes some building projects.
“I am happy to report that there are no reductions in staff,” Ryan said.
The tax levy, or the amount to be raised by taxation, is up 2 percent to $30,349,277 under the proposal. The district also was able to take a health care cap adjustment of .59 percent, or $175,497. Therefore, the total levy increase is 2.59 percent to $30,524,674 for 2025-26.
Regarding state aid, the district lost $584,479 in equalization aid and $140,000 in transportation aid, but gained $57,000 in School Choice aid, $118,000 in security aid and $502,000 in special education aid. The net loss is $47,516.
“Last year was the last year of S-2. We are all supposed to be at adequacy and did not anticipate any further reduction in state aid,” Ryan said.
However, she said, “After all of the aid cuts, we are now spending under adequacy, which means that according to the state we are not spending what we should be spending on education.”
Ryan said the state pays the district $2,300 per student while claiming to pay $14,117 per regular education student and $21,849 per special education student. She said that according to the state, the district should be collecting a $36 million tax levy based on real estate sales and community wealth.
“What they are saying is that the community of Upper Township can afford to pay more in taxes,” Ryan said. “The state says that we are about $5.5 million short of what we should be raising in taxes.”
She said there is talk right now about tax levy intensive aid for districts that are spending under adequacy and contributing less than the local fair share.
“There is supposed to be some kind of aid for us,” she said.
The district will use $2.916 million in capital reserve for a roofing project at the Middle School and $700,000 in maintenance reserve for smaller projects, plus $1 million from tuition reserve.
Ryan also explained how the funds are used, noting an 8 percent increase in special education costs, an 18 percent increase in special education tuition and a 25 percent increase in extraordinary costs.
Employee salaries and benefits make up 47 percent of the budget.
Maintenance projects
Ryan said the district would continue with regular maintenance, including upgrading security at all three schools, replacing hallway windows and the library carpet at the Primary School, ceiling tiles and the staff bathroom at the Elementary School and the roof at the Middle School.
She explained that the district has shared services agreements with the township for trash and recycling collection, snow removal, field maintenance, vehicle maintenance and fueling, floor maintenance, building usage for the Recreation Department and small repair project.
A public hearing is scheduled for 7 p.m. April 28 at Upper Township Middle School.
– By CRAIG D. SCHENCK/Sentinel staff