Freehold HS District Joins Coalition Fighting School Aid Cuts

BRICK, NJ — As a bill that would cut aid to dozens of school districts across New Jersey advanced out of committee on Tuesday, a coalition of districts that stand to be hurt significantly, including the Freehold Regional High School District, is calling on state legislators to take a closer look before they move forward.

Senate Bill S2, proposed by state Senate President Stephen Sweeney, would cut so-called adjustment aid to districts across New Jersey in order to push more aid to severely underfunded school districts. Sweeney, who has taken a hard line on the cuts, says districts receiving the aid are overfunded. It was approved by the state Senate Budget Committee and heads to the Senate for a full vote Thursday.

Opponents of the bill say the formula used to determine state aid is severely flawed and doesn't properly calculate wealth and income.

The Brick and Toms River school districts have been vocal in their opposition to the bill, which would result in cuts of $42 million combined over seven years. But they are far from alone, and on Tuesday representatives of 34 other districts affected by the Sweeney proposal joined them in calling for state legislators to take another look, according to a joint news release from the coalition of school districts. (READ MORE: School Aid Fight: Toms River To Lose $18M Under Sweeney Plan; School Aid Fight: Brick To Lose $22M Under Sweeney Plan)

The Freehold Regional High School District would lose $25,358,544 over seven years under the bill, which at the same time would provide a boost to districts such as the Freehold Borough elementary schools, which have seen enrollment skyrocket. The Freehold Borough schools would receive an additional $13,201,165 under the Sweeney plan.

Charles Sampson, superintendent of the Freehold Regional High School District, called the Sweeney proposal "dangerously simplistic."

"The proposal fails to recognize community specific variables and is dangerously simplistic in its approach," Sampson said by email. "Under this plan, increases in property tax will not keep pace with lost state aid. The FY25 budget will be $8.4 million less than the adopted FY19 budget based on 2 percent increases in property tax. This funding plan would have a potentially devastating impact on the programs we offer as a low-spending, high-performing model school district."

"Cutting aid through a formula that identifies districts that are 'overfunded' or 'underfunded' based on calculations that are materially flawed doesn't make sense," said William Doering, business administrator for the Toms River Regional School District. "Before taking money away from our students, let's make sure we correct the formula."

"We're asking legislators to take a closer look at all of this before Thursday's vote … if nothing else, to put it off," said James Edwards, business administrator for the Brick Township Schools. "This way, nobody loses, and it gives legislators a chance to evaluate the formula."

Jeffrey Bennett, of the Fair Funding Action Committee, a group backing the Sweeney bill, says the complaints about the revaluations are inaccurate and that county tax assessors compensate for that in an equalized valuation figure that looks at recent property sales to gauge valuation. He also contents the PILOT issue is overstated.

Former state Comptroller Matthew Boxer, in a 2010 report provided to state legislators including Sweeney and current Lt. Gov. Sheila Oliver, said the net effect of PILOTs on school funding is that other towns and taxpayers across the state end up picking up the tab of property taxes that should have been paid.
"This system allows the municipality, in essence, to hide its true wealth from the school district and the state," Boxer wrote, and hurts schools the most because they receive none of the PILOT money.

The Sweeney bill, S2, would reduce adjustment aid 5 percent for the 2018-19 school year, and reductions of 8 percent in 2019-2020, 10 percent, 14 percent, 18 percent, and 21 percent, with the last portion being cut in the 2024-25 school year.

The bill is the second attempt by Sweeney to cut the aid; last summer, a budget deal between Sweeney, then-Assembly Speaker Vincent Prieto and then-Gov. Chris Christie led to cuts to that aid — more than $1.4 million in Toms River and $720,000 in Brick. Those funds were later restored by the state Department of Education.

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