TOMS RIVER – Two bills were passed – literally at the last minute – that will make up for some of the budget crunch that the school district is facing, but officials have said that there is still too much that could be lost without more state aid.
At the center of the problem is that several years ago, a bill called S-2 cut school aid year over year to a number of local districts. The other side is that districts are not allowed to raise taxes more than 2%. This has left a gap between what it takes to run a district and the two main forms of revenue – taxes and state aid – coming in to pay those bills.
District officials said that the gap for next school year is $26.5 million. The state sets a number that they term “adequacy” which generally speaking means what the district needs to be spending to provide an education. Toms River Regional Schools is $91 million lower than that.
Governor Phil Murphy signed two bills that potentially help the district and many like it, but don’t solve the entire problem.
The first bill (A-4161) establishes a Stabilized School Budget Aid Grant Program. Districts can apply for grants equal to 45% of how much of their aid was cut for the 2024-2025 school year. Districts across New Jersey will compete for a pool of $44.7 million.
This bill also allows certain districts to request permission to increase taxes beyond the 2% cap imposed upon them years ago.
The second bill (A-4059) authorizes the Commissioner of Education to permit certain school districts experiencing a reduction in state aid to submit budgets no later than five days following the enactment of the FY2025 appropriations act. In simpler terms, a school district would have until the state budget is finalized before they finish their own budget. The state fiscal year is from July 1 through June 30, so this means it would be the end of June.
These bills were signed the final day that districts were allowed to introduce their budgets. During the Board of Education meeting that night, Superintendent Michael Citta said they got the message about it at 4:16 p.m.
The first bill that would provide 45% of lost funding doesn’t cover lost funding over the entire course of S-2, just the lost funding of the upcoming year. This would give $1.2 million back, he said.
If the district raises taxes by 9.9%, which is part of one of the bills, it would make all homeowners pay an average of $325 per household. It would provide $13 million. The district would still be short by $12.4 million. He stressed that this would be if the board chooses to raise taxes that much.
Seniors on the tax freeze program would presumably be exempt from increases.
Still at stake is all advanced placement programs, sports, and extra-curriculars as well as 20 percent of employees. The end result could be class sizes of 236 in the elementary schools.
These changes are not acceptable, Citta said. The administration, board, and staff don’t want this to happen. If nothing changes, the district would run out of money by April or May. The governor and State Department of Education don’t want that to happen, either.
“We’re still $25.3 million short of what we need to run programs and the schools as is,” he said. “We’re not asking for $91 million. We’re asking for status quo.”
Responding to political letters sent out criticizing the school board raising taxes, he answered that by law they have to increase taxes by 2% because of the situation they are in.
Although they didn’t vote on any budget – because of the bill that gave them until June – Board members voiced their opinions about the finances.
Earlier in the meeting, there were a number of presentations celebrating students who performed well in academic, athletic, and artistic endeavors. Board members said that these kids are excelling because school programs are available for their interests.
“The process of trying to decide which program to cut makes me ill,” board member Anna Polozzo said.
Polozzo noted that some students who struggle with one part of school need something to look forward to and find themselves. “There are kids who require all the co-curricular and athletics to make it across the finish line. They need some joy in their day.”
Board member Ashley Lamb said she wanted to hear from the public. She urged them to reach out via the email addresses posted on the school district’s website. If they want to see a tax increase to support programs, let them know. If they don’t, make their voices heard.
She noted that there were only four members of the public in the audience at the meeting.
Board President Kathy Eagan said that the Department of Education has looked at their budget and said it was amazing what the district has been able to accomplish given the challenges.
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