Editor’s note: Due to an editing error, Keyport was misidentified in an earlier version of this story.
No one in the small coastal community of Keyport is disputing the timeline.
In late February, the state Department of Education released anticipated state aid numbers for New Jersey’s nearly 600 school districts. Officials in Keyport, a tiny two-school district in Monmouth County, learned they were losing about $170,000 in state aid for next year, thanks to the state’s cap on reductions.
So a few weeks later, the Keyport Board of Education created a preliminary budget and sent it off to county officials. But a week later, the state unveiled a tantalizing proposal that threw a wrench into the district’s already-created budget: the tax levy incentive program.
The name might sound innocuous, but the details aren’t. The new program is a one-time opportunity to exceed the state’s 2% property tax cap, allowing school districts to raise their local tax levy. It’s offered only to districts that meet certain criteria.
And it was an offer Keyport officials apparently couldn’t refuse. They unanimously voted April 9 to apply for it during a special school board meeting.
The motion contains a proposal to increase the tax levy by 12.5%, which includes the previously approved 2.87% increase, according to local officials.
As of now, the budget is preliminary. The final budget and confirmed percentage increase for the tax levy will be presented to the school board for approval on May 7. A public hearing will also be held then.
If approved, the 12.5% increase will add $1.49 million to the budget, officials said.
Superintendent Lisa Savoia presented the plan to the board and the public during the April 9 special school board meeting. Several residents voiced their frustration.
“You balanced a budget with what you had,” resident Janet Gallo-Markowski said during the meeting’s public comment, her voice rising slightly. “And you submitted it.
“And now, the state is giving you a tax wand and saying, ‘Here, you can go raise beyond the tax cap that the state put on and make up for what we didn’t give you.’ You have got to reject what the state is putting in front of you.”
The Monmouth County school district serves roughly 973 students in its two schools, according to state education data.
Savoia, who wrote a letter to the community detailing the proposal, initially outlined a 20.11% tax increase. It’s unclear why the number was reduced.
In a statement to NJ Advance Media, Savoia echoed board members and called the state’s funding formula “flawed” and the state-mandated 2% tax cap “restrictive.”
“The state’s funding formula has created a significant gap between what our community is expected to pay locally and what we receive in state aid,” Savoia said. “Without this aid, we face the difficult reality of cuts to educational programs and co-curricular opportunities that would affect students both in and out of the classroom.
“Our goal is to ensure that every child in Keyport continues to receive equitable opportunities comparable to students across New Jersey. Unfortunately this comes at a cost to our taxpayers, who are already doing their best to manage the rising cost of living.”
During her brief presentation at Wednesday’s meeting, Savoia emphasized that the additional tax revenue will not add services, but sustain the district’s current programs.
Other residents who spoke during the meeting called the 12.5% proposal “unreasonable and reprehensible,” likening it to “sticker shock.”
“There’s not a single person in this room, that if they weren’t able to accomplish all that they wanted to from their household budget, that they could turn around to their boss and inform them that they were getting an increase just because they can’t make their current budget work,” said resident Christina Greenberg.
“It is unfair of you to expect that you can do that to every homeowner in Keyport,” she added.
School funding has long been a contentious issue in New Jersey.
Districts in the state all receive different amounts of state aid based on enrollment, poverty levels and the tax base of the community, among other factors.
Under a heavily debated, revised school funding formula enacted under then-Gov. Chris Christie, some districts have seen their aid decrease over the years as the state adjusted numbers to match the new formula.
Although the formula was passed more than 15 years ago, the 2025 state budget was the first time it was fully funded, state officials said.
Officials in some school districts that have experienced steep cuts say the formula is unfair.
Several other New Jersey districts have recently proposed or voted to raise their tax levies, leading to significant tax increases in Plainfield, Hillsborough, Middletown and Brick.
Our journalism needs your support. Please subscribe today to NJ.com.
Brianna Kudisch may be reached at [email protected].