LACEY – The Lacey Township School District is grappling with a significant financial crisis, marked by the recent failure of a three-part referendum and a $6 million budget deficit for the 2025-2026 school year. School officials attribute the district’s woes to years of state aid cuts and voter concerns about rising taxes.
Referendum Fails
The recent referendum, which sought funding for critical school repairs and upgrades, failed to pass, leaving the district in a precarious position. The referendum was divided into three questions:
Question 1: $30 million for roof replacements across six schools, with $12 million expected from state funds. This question failed by 216 votes.
Question 2: $38 million for HVAC system upgrades, lighting, plumbing, and electrical improvements, with $15.2 million in state funding. This question was defeated by a larger margin.
Question 3: $24.5 million for facility renovations, including gym locker rooms, a synthetic turf field, and outdoor sports upgrades, with $8.6 million in state funding. This question received the most opposition.
Kim Klaus, President of the Lacey School Board, attributed the referendum’s failure to several factors. “The most repetitive concerns were regarding the economy, tax fatigue among voters, not enough information, and voting down one to block two and three. The turf was in full opposition from every conversation as an unnecessary want,” she stated. She also addressed the impact of social media, urging residents to contact the district directly for accurate information.
Former School Board member Regina Discenza was part of a group that campaigned against all three proposals on the bond referendum. She said, “I know in my heart that some of those repairs need to be done ASAP, and many of the HVAC systems are getting old, and getting parts to repair them is an issue,” said Discenza, who blamed the district for a lack of maintenance.
However Acting Superintendent William Zylinski offered another explanation in an interview.
“The roof is not related to maintenance when the roof has been deemed in need of replacement from the architect,” stressed Zylinski. “We maintain everything to the best of our ability, but just like it happens at home – there comes a time that roofs need to be replaced.”
In a recent rainstorm, the pressing need for roof replacements was evident. In the high school, there were 22 stained tiles and leaks. The Middle School had four stained tiles and leaks throughout the schools. Mill Pond School had nine stains and leaks; Lanoka Harbor School had one; Forked River School had 21; and the Cedar Creek School had 35.
Board member Skip Peters said that the roofs were all out of warranty.
“If we have a leak in the roof, we have to bring in a contractor or attempt to patch it ourselves,” said Peters, adding that contractors said the problems are beyond patches.
Peters, who served on the referendum committee, expressed his disappointment in its failure – focusing on Question One which would have recast an existing loan and included a 40 percent commitment from the state for the cost of the repairs.
“We’re going to have to regroup and figure it out,” he said. “It’s got to be done.”
Acting Superintendent William Zylinski said the district is continuing to evaluate all of its options after a recent referendum failed. (Photo by Stephanie Faughnan)
Budget Crisis
It’s not as if the additional costs can be built into the 2025-2026 school budget as a capital costs line item. The tentative budget for next year is already $6 million short.
In an exclusive interview, Acting Superintendent William Zylinski and Business Administrator/Board Secretary Sharon Ormsbee spoke frankly on the extent of the district’s financial woes. Over the past seven years, Lacey has lost over $14 million in state aid, while only experiencing a 10% decrease in enrollment.
“That’s been really impactful for us. You know, when we talk about the maximum increase in tax levy of only 2% which is equivalent to only $1 million, we talk about trying to recoup revenue of $14 million that have been taken away from us. We can’t recoup that kind of money when we can only raise a million dollars each year,” Ormsbee explained.
Rising costs, including health benefits, utilities, and transportation, have further exacerbated the situation. Health benefit costs alone have increased by $3 million, or 18%.
The district has also exhausted its fund balance and faces a loss of $400,000 in miscellaneous revenue. To address the budget shortfall, the district cut 34 certificated positions last year and will eliminate seven more positions this year through attrition. Class sizes range from 28 to 36 students, and the district has a 13:1 student-to-teacher ratio.
“Any further cuts to our core budget will interfere with a thorough and efficient education for the students of Lacey, which is what they deserve,” Zylinski stated.
The proposed 2025-2026 budget is $87,542,531, with a tentative 3.15% property tax levy increase. Zylinski emphasized that the district is as efficient as possible, but state funding cuts have made it impossible to maintain current services.
“The blame is straight on the shoulders of the State of New Jersey for not capping our losses, knowing we have no way to recover those losses through a tax levy,” Zylinski said.
The district is now exploring options for addressing the urgent repairs and balancing the budget, including the possibility of another referendum.
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