Freehold Regional School Board Faces Budget Strains Amid State Aid Decline, Considers Tax Levy Incentive.

The Freehold Regional School Board meeting in early April focused heavily on financial challenges facing the district due to a significant reduction in state aid. The board discussed potential strategies, including a tax levy incentive program and a large-scale referendum, to mitigate the impacts on local taxpayers and maintain essential educational services.

23:53A primary topic of discussion was the severe drop in state aid, which has fallen from about $51.4 million in fiscal year 2016 to an anticipated $29.6 million for fiscal year 2026. This decrease has resulted in state aid comprising only 15% of the district’s budget, down from 26.5%. The board was presented with the stark reality of increased class sizes and deteriorating facilities, such as condemned tennis courts and aging infrastructure, which have directly affected the learning environment. The district’s maintenance investment over the past 15 years averaged around $3.3 million, but industry standards suggest the necessary amount should have been between $11 million and $16.8 million. This shortfall highlights a pressing need for significant investment in facilities to prevent further deterioration.

29:23To address these challenges, the board discussed applying for a tax levy incentive program from the Department of Education. This program would allow the district to exceed the standard 2% tax levy cap by generating an additional $30 million through local taxes, alongside $1 million in state aid. This opportunity could ease budget constraints without fully eliminating the need for future funding efforts. However, the program requires the district to demonstrate that all available measures to increase revenue have been exhausted.

35:57Additionally, the board considered a large-scale referendum, potentially scheduled for November 2025, aimed at securing funds for critical facility upgrades. The referendum could encompass $240 million to $250 million for mechanical, electrical, and plumbing improvements, security upgrades, and renovations of science labs and flooring. The board emphasized the urgency of these upgrades, particularly in light of failing mechanical systems that could disrupt school operations.

Detailed discussions on the financial implications of these options were held, with an analysis of tax rate impacts on different municipalities within the district. For instance, Englishtown could see a tax rate increase of 2.5% under the board’s potential 2% increase option, while a community-supported referendum could raise it to 9.9%, and another option might escalate it to 13.8%. The board acknowledged the varying impacts on taxpayers, advising residents to review their tax bills for specific consequences.

50:48Personnel changes were also addressed, with the retirement of two staff members and new appointments approved. The board assured transparency in these decisions, detailing effective dates and background checks. Modifications to the agenda included additional expenditures and tax incentive aids, aimed at maintaining thorough educational programs and reinstating staff.

09:38The board highlighted the importance of community support during these financially challenging times and stressed the need for informed decision-making. They urged careful consideration of the budget and tax proposals before the upcoming public hearing, tentatively scheduled for April 24. However, there was a suggestion to postpone the hearing until determinations from the Department of Education are received.

59:27In a lighter note, the board acknowledged the successful college fair held at Marlboro High School, which featured over 100 participating colleges and provided valuable opportunities for students.

Note: This meeting summary was generated by AI, which can occasionally misspell names, misattribute actions, and state inaccuracies. This summary is intended to be a starting point and you should review the meeting record linked above before acting on anything you read. If we got something wrong, let us know. We’re working every day to improve our process in pursuit of universal local government transparency.

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