Hillsborough Struggles To Balance School Budget After $1.4M Cut In State Aid

HILLSBOROUGH, NJ — A few days before the Hillsborough School District was set to unveil its tentative $137.4 million budget for 2022-23, it was hit with a roughly $1.4 million reduction in state aid.

"I was shocked that our decrease in state aid was twice as much than we expected. I think we all were," said school board member Gregory Gillette.

Interim Business Administrator Paul Roth presented the tentative budget at the March 14 meeting which had anticipated a $700,000 reduction in state aid. However, with the increased reduction amount in state aid Roth said the district must go back and work in the additional $700,000 to balance the budget.

In early March the state announced Hillsborough Township Schools would receive $21,555,634 for the next fiscal year under the proposal — a 6.12 percent decrease over its state aid for the current school year. Read More: Hillsborough Township Schools Will Get Less State Aid For 2022-23

Roth called the reduction an "unpleasant surprise."

Acting Superintendent Dr. Kim Feltre said the administration is meeting "to make difficult decisions" and "trying to ensure we continue to provide a thorough and efficient education to our students, maintain programs, maintain positions, and maintain class sizes."

Along with the reduction in aid, the district saw increases in salaries, benefits, and tuition. Salaries increased by $1,079,112, benefits by $337,186, and tuition by $112,974.

Salaries and benefits take up roughly 80 percent of the budget, said Roth.

"The district is faced with revenue problems… that is essentially due to state aid reductions that is really what drives everything at this point," said Roth.

Committeeman Frank DelCore said the loss in school funding was "quite disappointing" at the March 22 Township Committee meeting.

"It's truly a shame that we continue to be impacted here in the town," said DelCore. "It is certainly disappointing and indicates the continuance of the need to revisit the school program. A town like ours to have 2 years in a row where we lose funding from the state, money that through your tax dollars has been paid into the state will now have to be essentially refunded through the remaining tax levy we have in town. The formula needs to change."

A public hearing where a balanced budget is expected to be presented and finalized will be held at April 25 Board of Education meeting.

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