New Jersey Schools Bypass Voter Opposition to Secure Tax Funding

The subject of School Funding has become a hot topic in New Jersey. When Governor Phil Murphy campaigned on School Funding Reform in 2017, no one foresaw numerous School Districts being forced to cut jobs and after-school programs.

Each of the last two years, New Jersey has committed to over $11 Billion in School Funding, but Governor Murphy's new formula has led to 120 School Districts facing state aid cuts for the 2025-26 Academic Year.

The Passaic Public School District is cutting jobs at the end of this school year, while Toms River Schools are selling one of their buildings, and Dennis Township has eliminated Courtesy Busing.

Now two South Jersey School Districts are taking advantage of a special state Department of Education Program to get more funding in a controversial way for the 2025-26 Academic Year.

What You Need To Know About The NJDOE Tax Levy Incentive Aid Program

New Jersey's Department of Education offers a program that allows School Districts a one-time exception to the state's cap on tax levy increases. Here is how one School District website describes this program:

"The Tax Levy Incentive Aid Program allows a one-time exception to the State’s 2% cap on tax levy increases and was specifically designed to assist districts that are both under adequacy and under their calculated local fair share."

While this unique program allows School Districts to obtain more state aid for the upcoming Academic Year, this also forces local taxpayers to hand over more money without the voters' approval.

The Collingswood Public Schools announced that thanks to the NJDOE Tax Levy Incentive Program, the School District can now cover their $3.6 Million Budget Deficit. Collingswood Schools will receive $10.918 Million of State Aid for the 2025-26 Academic Year.

But Collingswood Property Owners will now be forced to pay more in taxes without any voters' say in the matter. The average property tax assessment is $1109.64 per year median payment by Collingswood residents, a one-year increase of 29 percent.

Meanwhile, the Dennis Township Board of Education announced the award of $1,790,295 through the New Jersey Department of Education’s Tax Levy Incentive Aid Program. After losing over $4 Million in state aid since 2018 under Governor Murphy's new formula, School District officials are calling this state aid infusion as a "much-needed lifeline."

But after Dennis Township Residents voted against Tax Levy Hikes in both 2023 and 2024, the School District got the Tax Levy it wanted without consent from the local residents.  Now Dennis Township Taxpayers will be forced to pay an additional $186.60 per $100,000 of assessed property value.