EAST BRUNSWICK, NJ — East Brunswick Public Schools is educating approximately 230 students who live in five development areas associated with payment-in-lieu-of-taxes agreements, but the school district has not received any PILOT revenue, district officials said during the Board of Education's Oct. 8 meeting.
The number is already growing. School Business Administrator and Board Secretary Joseph Crotchfelt said another family from one of the newest developments registered on the day of the meeting, meaning the approximately 230-student count will increase. He said the students currently come from five different development areas.
Board President Marianne Tanious used a rough figure of about $20,000 per student to estimate the scale of the educational expense at approximately $4.5 million if enrollment from those developments remains at its current level.
Crotchfelt cautioned against treating that figure as a precise net loss to the district.
"I think that is a way to look at it," Crotchfelt said, before adding that "it gets a little bit complicated." He said there is still a cost to educating children who have entered the schools as a result of the developments, but the financial effect cannot be calculated simply by multiplying enrollment by a single per-pupil number.
The distinction matters as the district prepares future budgets and enrollment continues to change. Crotchfelt said costs can vary by grade and can be substantially different for students requiring other placements. A student attending a charter school affects the district's state-aid allocation, he said, while an out-of-district placement can cost considerably more than $20,000 annually before transportation expenses are included.
The discussion also clarified that the school district does not control how East Brunswick's PILOT revenue is distributed.
Crotchfelt said that under the current framework, PILOT agreements are between the township and the developer or property owner.
"The district does not have a say in how that money is used under the law currently," Crotchfelt said. He added that municipalities and school districts can reach separate agreements to provide money to schools, but such an arrangement would require a mutual agreement over the funding and its use.
Board member Laurie Herrick noted that other municipalities have entered agreements providing school districts with either a percentage of PILOT revenue or money for specific expenses. Crotchfelt agreed that there are several ways such arrangements can be structured but again said they require agreement between the municipality and school district.
No broader PILOT revenue-sharing agreement between the township and the school district was identified during the discussion. The only specific PILOT-funded proposal described by district officials involved potential improvements at the East Brunswick High School stadium.
Crotchfelt said township representatives approached the district in the spring about using PILOT money for permanent bathrooms and a concession stand at the East Brunswick High School stadium. Crotchfelt said he also raised the possibility of incorporating improved stadium lighting because of dark areas at the facility.
Crotchfelt emphasized that the district has not formally agreed to the project.
"We as the district did not commit to anything," he said. Any plan would have to be brought back to the district and ultimately accepted by the Board of Education, he said, and “that has not happened.”
The township's concept, according to Crotchfelt, did not call for matching money from the school district. He said the township contemplated designing and constructing the project itself, with “no financial impact to us.”
Crotchfelt also clarified that a previous township-funded improvement at Warnsdorfer Elementary School was not connected to PILOT revenue. Asked about the township’s repaving of the school parking lot, he said the municipality had remaining money on an existing paving contract after completing its other projects and used those funds for the school property. “It was not PILOT related,” Crotchfelt said.
Crotchfelt said the initial discussion took place around late May or June. Since then, a township representative has met with district support operations staff and the athletic director to review the site and issues including sewage lines and pumping needs so the township could continue developing a design before bringing anything back to the district.
The discussion also drew a distinction between one-time and recurring uses of PILOT money. Crotchfelt said a reliable, long-term commitment could potentially support recurring operating expenses because the district could plan around that revenue. A one-time contribution, however, would be more appropriately directed toward a capital project so the district does not create an ongoing budget obligation after the additional revenue disappears.
For now, the district's position remains unchanged: approximately 230 students from PILOT-related developments are enrolled in East Brunswick schools, the number is expected to grow, and no PILOT funds have been received by the school district. Any township-funded stadium project or broader revenue-sharing arrangement would still require additional discussion and formal approval.
For our readers' benefit, the full video from the Board of Education meeting on this is embedded below.
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