PETERSBURG — The Upper Township Board of Education adopted its budget April, 28, 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.
Business Administrator Laurie Ryan said the district was able to maintain all staff and programs.
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.
Ryan outlined the 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.
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.
After introducing its budget, the state offered the Tax Levy Incentive Program, which allowed districts like Upper’s spending below adequacy to increase expenditures beyond the 2 percent levy cap. Ryan said the district chose not to raise taxes further.
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 during the introduction.
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.”
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.
– By CRAIG D. SCHENCK/Sentinel staff
