Solutions

There are 2 areas of solutions-oriented advocacy:

• State level

  • Statements given by Superintendents, BOE Presidents & Vice Presidents, Teacher Union Presidents, and Parents all indicate that the current funding formula is not working and districts need money and predictability.

  • Continue to attend hearings & meetings to explain the local fair share problem, the impact, and outline the below proposed solutions.

    • Ensure that Equalization Aid fully covers the gap between the Adequacy Budget and the Local Fair Share. 

    • Use five-year rolling averages for Local Fair Share calculations to reduce volatility and provide consistent funding.

    • Allow school districts to go above the 2% cap for general operating expenses when there is a large gap between Local Fair Share and the actual local tax levy received.

    • Extend budget planning timelines and provide 3-5 years of state aid projections to allow districts to plan effectively.

    • Cap annual state aid cuts with a maximum reduction ceiling to protect districts from abrupt funding losses.

• Local level

• Continue raising the funding gap issue at BOE and Borough meetings

• A concentrated effort to bring the BOE and Borough together regarding this particular item

• Solutions at the local level:

• Tax Neutral Solutions

  • A new PILOT agreement that would increase the percentage going to schools from 10% to 52% (state school property tax average)

  • A percentage of the borough's unappropriated surplus sent to schools (permissible under the New Jersey Statute, Title 40, Section 40:48-17.1)

  • A percentage of cannabis sales tax sent to schools (this is a brand new revenue stream for our town)

• Tax Raising Solutions

  • In partnership with the borough, a district referendum to increase the operating budget. This could include a pause on borough tax increases, so tax payers are not hit with a double tax increase.

  • Borough utilizes bank cap and sends 52% (state school property tax average) to schools

Here are several examples, created out of a strong relationship between a school district and their town:

• City of Hoboken and schools reach deal for $500,000 payout from PILOTs (30 year PILOTs, increasing school budget by an additional 2% per year)

• Parsippany Troy Hills School District in early discussion with their Township regarding PILOTs contribution

• In July 2024, Warren Township passed a resolution to split future PILOT payments 60% to township and 40% to the school district

• Robbinsville School District increased their operating budget through joint effort with Township

  • District passed a $2.75 million referendum (vote necessary)

  • Township sent additional funding to district from Township surplus budget (no vote necessary)

  • Township agreed to continue keeping their tax rate flat (no vote necessary)