Governor Urges School Districts to Lower Real Estate Tax

According to data released today by the New Jersey Department of Education on its website, the Bridgewater-Raritan School District is slated to receive an additional $1,331,545 in school aid.  This is over and above the previous increase in school aid announced in March and built into the 2011-2012 School Budget which voters approved in April.

Board Members Lynne Hurley, Jill Gladstone, & Ann Marie Mead at June 14 meeting. (Bergeron Image)

However, it may come with a catch:  Governor Chris Christie is urging suburban school boards such as the one for the Bridgewater-Raritan School District to allocate those extra funds for real estate tax relief – not a bad idea, one which is wholly consistent with Christie’s conservative fiscal approach.

It would be gratifying should the Bridgewater-Raritan Board of Education see it that way as well.  At the moment, it’s unclear whether or not the Governor’s office will put any teeth into its request to use the added $1.3 million for tax relief, or whether it is merely a soft request.

 As previously reported, contract negotiations between the B-R Board of Education and the largest of its three employee bargaining units, the teachers’ union (the BREA), have stalled. 

The teachers’ association has requested a mediator, and there is no telling what impact that mediator’s thinking might have with regard to this extra cash, and whether or not it could affect the bargaining process.

Additionally, there could be pressure placed on the Board to reinstate programs, use the added funds for repairs, capital improvements, or add part or all of the money to surplus.  Expect competition for the use of this unanticipated $1.3 million.

It should be noted that the preliminary school budget proposal prepared in December, 2010, and presented to the public in late January, 2011 provided for a decrease in State aid of 15% not an increase. (Source:  School Budget Drafts of December 21, 2010 and January 25, 2011.)  

When that budget was initially cast, it was unclear what the State of New Jersey would do with respect to aid for suburban districts, and the B-R School Board and its Administration seemed to be preparing the public for a worst case scenario.

However, much to everyone’s relief, Trenton came through at the last minute and increased aid to the Bridgewater-Raritan School District by 24.7%, from $5.4 million in the previous year, to $6.8 million for the new school year beginning on July 1, 2011.  (Source:  B-R School District, March, 2011, Presentation, Budget Increase Comparison; numbers rounded.)

The additional increase for the Bridgewater-Raritan School District announced today by the New Jersey Department of Education brings the total package for the new 2011-2012 school year to a final revised school aid number of $8,049,308. 

This represents a total increase in school aid of $2,663,091, or 49.4% more than the $5,386,217 for the previous school year ending June 30, 2011.  (Source:  State of New Jersey, Department of Education website.)

Given the temper of the times, it’s not unlikely that the B-R Board of Education could allocate a significant portion of its increased school aid to real estate tax relief for the citizens of Bridgewater and Raritan.

The next regular meeting of the School Board is scheduled for July 26.  Thanks for reading.