There are 2 areas of solutions-oriented advocacy:
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.
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)