HOWELL – Property taxes are going up in Howell Township after both Howell K-8 School District and Freehold Regional School District approved a tax levy increase.
The increases come as a result of the long-term effects the S-2 funding formula has had on both districts, losing millions of state aid funding.
At a recent Howell Board of Education meeting, the district presented its amended, final budget.
Before the presentation, Superintendent Jospeh Isola asked the board to approve the 9.9% tax levy increase, which is normally a 2% cap. The state changed it this year to allow districts who lost funding to make up at least some of the difference.
“I’ve said very clearly in no uncertain terms that it is my recommendation that the board move forward with the decision to adopt the full amount available. I have been very clear about how serious of a statement I recognize that is,” Isola said. “However, I do think to protect our students’ future and to make sure we’re able to provide programs and staffing, it is critically important that we prepare ourselves for the future.”
Isola continued, stating how in the past they have not taxed the full amount.
“Should we take this taxing authority, and next year the budget formula is favorable to us, that will provide an opportunity to exercise restraint and we’ve done in the past and demonstrate that to our community by not taking the 2% eligible plus waivers that a typical year would provide,” Isola said.
Business Administrator Ronald Sanasac presented the revised budget to the board and public with the possible 9.9% increase. He explained how Howell Schools is a victim of S-2 funding cuts.
“We’ve lost half of our state aid funding. It’s not something we get control of. It affects us and our only other option is for local taxation,” Sanasac said.
Sanasac further detailed how in the past years, they could have gone well above 2% or at least 2%, but did not. He also explained how although the future funding formula is unknown, they are preparing for the worst possible outcome when it comes to state aid.
“The past prediction of the future is its history,” Sanasac said.
For the previously passed 2024 budget, the average monthly impact on a home was $10, based off the average house assessment of $545,000. For the new 2024 budget with the possible 9.9% tax levy, the same average house would be $21 a month.
“The legislature is viewing this increase as a save preserver, so if we don’t use it, next year don’t come crying to us,” Sanasac said.
The uncertainty left the board between a rock and a hard place. If the district does not take this opportunity and continues to lose funding, it could result in large classroom sizes, programs being cut, as well as courtesy busing possibly being cut. However, with rising inflation, many were concerned about the raised taxation putting a burden on families who are living paycheck to paycheck.
Board members decided to go through different tax percentages to compare numbers before voting. The first round of voting was for the 9.9% increased tax levy, which failed to be approved. Next was 8%, which also failed.
Finally, the board voted on 7%, which was passed by five in favor and four opposed.
The Approved 2024-25 Budget
According to the district, the $148,063,688 budget will be supported by $90,300,846 in taxes collected from Howell’s residential and commercial property owners. This was previously $87,382,416, but with the new 7% tax levy it added an additional $2,918,430.
The district’s general fund, which supports the majority of the district and its operation, is $129,932,489 with a tax levy of $90,236,045.
The average monthly impact on a home is about $16, based off the average house assessment of $545,000.
Howell School District will receive $22,118,857 in state aid for the 2024-25 school year. According to the NJ Department of Education, this is an increase of $1,517,548 or 7.79%.
In addition, the district is receiving $14,726,339 in state aid for pre-k – this does not benefit the regular budget.
Freehold Regional High School District
Home to Howell High School, the Freehold Regional School District Board of Education passed an 8.7% tax levy increase. The new budget reflects an additional $10,175,000 in property taxes, Superintendent Nicole Hazel said.
“The 2024-25 budget includes $30.6 million in state aid. That’s 40%, $21million less than the pre-S-2 funding levels. Over the S-2 years, its $97.7 million,” Hazel said.
The district is slated to lose $10.8 million for the 2025-26 school budget per the state aid calculations, Hazel said.
“Under S-2, the district had to abolish 115 positions over the S-2 years,” Hazel said.
Hazel states that the new budget for 2024-25 will provide funds to hire 19 staff members that were cut from the previous budget.
