HOWELL – Members of the Howell Township Board of Education have voted against increasing taxes more than the 2% cap.
The state has provided an option for school districts to apply for a Tax Levy Incentive Aid program. In the state’s proposed budget, certain districts qualify and have the opportunity to apply to increase expenditures, including an allocation of Tax Levy Incentive Aid, if spending is under adequacy.
A district’s spending is under adequacy because they are not spending what the state says they should to provide a thorough and efficient education. “Thorough and efficient” is a state definition, mandated by the New Jersey Constitution, based on what Trenton thinks a district of their size should be spending.
Additionally, districts qualify to apply for the Tax Levy Incentive Aid program if their property tax levy is below the local fair share.
Business Administrator Ronald Sanasac said Howell Public Schools is eligible for the program. According to the state, Howell is under taxed by more than $12 million and under spending by almost $9 million.
In addition to their calculations, the state will kick in an additional 5% for any district that raises taxes more than 2 percent.
“The state determined that we have $8.7 million of taxing authority that they would give us permission to use in exchange for them putting in the 5%,” Sanasac said.
Last year, the school board voted to raise the tax levy by 7% after the state changed the cap to allow districts who lost funding to make up some of the difference. This was disclosed as a one-time offer, where the board could have raised it up to 9.9%.
Due to the uncertain times as well as years of state aid cuts, the board had gone ahead with the 7% increase.
“Yes, we increased the levy last year. That kept us from being in a giant negative position this year. If we had not done that, we would be in a very negative position going forward,” Sanasac said.
After his presentation, he suggested taking the offer to raise the taxy levy again. He pointed out that the district could use the money to pay off their tech-refresh and other curriculum spending that is currently being paid on installment plans with no interest. This would allow the district to have money later down the road for future budgets.
Initial Total Expenditures are $2,349,513. The 5% levy increase would provide $111,882 in state aid, leaving the residual levy at $2,237,631, Sanasac said.
However, Sanasac said that the 2025-26 budget that was previously proposed works, and the Tax Levy Incentive Aid program is just an option.
The current proposed budget is $151,074,942, which will be supported by $93,248,413 in taxes.
Many board members shared similar thoughts about the program, stating that it’s not right to raise taxes for a second year in a row.
“We’re here to represent the kids and the taxpayers of Howell,” board member Joseph Mauer said. “For them to say we are under spending by $9 million… this is the community’s money that they have to provide to us to spend in a school district. We have to take into consideration to current taxes in Howell.”
“For us to raise taxes any more, after what we did last year, is completely irresponsible in my opinion,” Mauer added.
“Last year we said we weren’t going to do this again. I think we really have to look at this as a big picture,” Board President Cristy Mangano said. “We have to think of the long-term effects it will have on the families of Howell.”
Board member Denise Lowe made a motion and proposed adding $3 million to the current proposed budget instead of $9 million. However, no one seconded her motion.
Vice President Ira Thor motioned to continue with the current proposed budget, with no additional increases above the cap.
The board voted 8 to 1 not to increase their budget over the 2% cap.
A public hearing on the 2025-26 budget will be held on May 7 at 7 p.m. at the Board of Education Administration Building located at 4567 Route 9, Howell.
