If approved, taxes would increase $364 for the average house in Hillsborough, and $1,294 for an average house in Millstone.
Alexis Tarrazi, Patch Staff
HILLSBOROUGH, NJ — In an effort to avoid further cuts to staff, sports, and programs, the Hillsborough Township Board of Education voted on Monday to look into applying to the state for the potential ability to raise the local tax levy by up to $20 million and potentially receive $1 million in state aid.
If approved, the average house in Hillsborough, valued at $594,089, would see a $364 tax increase. The average house in Millstone, valued at $409,598, would see a $1,294 tax increase for the 2025-26 school year.
This decision to explore this option follows the news that Hillsborough yet again lost state aid. This year they are expected to get $535,930 less than last year in school aid from New Jersey as part of the latest state budget proposal.
Since 2019-20, the district has lost $7.5 million in their baseline of state aid, and in that time period that equates to $26 million, according to Superintendent Michael Volpe at a previous meeting.
As a result, the district's preliminary budget for the 2025-26 school year proposes to reduce staff by 24 positions by April 28, raise taxes and make a number of other impactful cuts. Read More: 'Cutting To The Bone': 24 Staff Cuts, Tax Increase In Hillsborough School Budget
Find out what's happening in Hillsboroughfor free with the latest updates from Patch.
The Tax Incentive Aid option "is very new and only made available this past week to the district," said Board President Paul Marini at the Monday night school board meeting.
The aid is targeted for school districts like Hillsborough which are under adequacy and have been hurt by state aid cuts over many years.
"The state has informed us that if efforts are made to get closer to adequacy by raising the general fund tax levy by $20 million, they will provide an additional one-time $1 million in state aid for next school year," said Marini.
"To be clear, I don’t think this is the best way to solve the issue, but it is a solution we are being offered," said Marini.
The district had to decide if they were going to explore this option by April 14.
"As you can understand, this is a rush job," said Marini.
Many Board members expressed that this decision to explore raising the tax levy should go to the voters in a referendum.
"I am just uncomfortable in proposing an increase of this magnitude without having the town have the opportunity to vote on it," said Board member Joel Davis. "For us to impose something like this on the town, I think, is completely inappropriate."
If the Board ultimately decided to go with the Tax Incentive Aid program, Marini noted that all cuts proposed in the tentative budget for 2025-26 would be restored, including courtesy busing, middle school sports, 24 staff positions, and more.
Additionally, the district would see benefits moving forward in the 2026-27 school year and also the 2027-28 school year.
Marini also outlined what would happen if the Board ultimately decides to decline to participate in the Tax Incentive Aid program.
"The absolute worst case scenario if we decline this option so people in the community understand. Depending on the level of cuts, we could be looking at 20-plus teachers year over year in the coming years. Or even something as drastic as eliminating high school sports to cover the costs," said Marini.
"While this is the extreme end of the spectrum, at a certain point,t everything has to be on the table. Or we could be looking at classrooms with 45-plus students. The intention is not to incite doom and gloom but to understand the lens through which is viewed from the Board’s perspective," said Marini.
Many residents spoke in favor of having the school board explore the new option of raising the tax levy.
Resident and a member of the Hillsborough Education Association Jean Bates said, "When the opportunity comes along to at least have a conversation, I think we need to take advantage of it. You need to be able to explore it. You are under a real time crunch right now and that makes your decision even harder... By not passing this resolution tonight, you are slamming the door on the students of Hillsborough."
"I think the choice tonight is do you keep options on the table? Do you give yourself the ability to have further conversations? I think giving yourself choices is not a bad idea, to continue that, said Assemblyman Roy Freiman and Hillsborough resident at the meeting.
The school board's student representative noted that from a student perspective "it's been demoralizing to see state aid cuts every year. The students know about it. My friends are asking me why don’t we have better ventilation? Why aren't there gym improvements?... If high school sports are cut, that would be entirely demoralizing for the student population. I feel like it would be really uplifting to the student population to see that the Board cares a lot about them and is making this step to at least talk about a supposed increase in budget."
The Board ultimately voted 6 to 3 in favor of the resolution to explore the Tax Incentive Aid program. Board members Davis, Elaine Jackson, and Jean Trujillo voted against the resolution.
This vote does not raise taxes at this time. Instead, the vote solely authorizes the Board to proceed with the application process to the state for this potential funding.
As part of this process, the Board of Education is actively seeking feedback from residents before submitting this application.
A Community Engagement Night has been scheduled for Thursday, April 10, at 7 p.m. at Auten Road Intermediate School.
This meeting provides a vital opportunity for community members to:
Even if the application is submitted to the state, it requires approval from the state before any further action can be taken.
Following state approval, the Board of Education will then hold a public discussion and vote on whether to include any such funding in the 2025-2026 school budget during their meeting on Monday, April 28th, at 7:30 p.m. at Auten Road Intermediate School.
See below for the full Tax Incentive Aid presentation (begins at 1:39:20):
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