Tax Increase But No Job Cuts In Manchester School Budget For 2023-24

MANCHESTER, NJ — The Manchester Township Board of Education approved its 2023-24 school budget, with a 2.58-cent tax increase affected in part by a large increase in health care benefits.

The $68,752,776 budget does not cut any positions, business administrator Craig Lorentzen said Wednesday night. It includes $5,372,064 in state funding, an increase of $270,031, or 5.29 percent.

That is the first increase in aid the district has received since 2016, Lorentzen said, and comes even as the district's property values increased by $25 million.

The tax increase for a home assessed at the Manchester average $201,400 equals $65.38 annually, or $5.45 per month, Lorentzen said. The school tax rate is $1.232, which is the amount for every $100 of assessed value.

State aid is about 11 percent of the district's budget, a percentage that is much lower than other districts because Manchester has been seen as "wealthy" due to the imbalance created by the high percentage of senior citizens: two-thirds of the town's residents are over 65 years old.

Manchester's property values and median income of $51,000, combined with declining student enrollment, contribute to the town being seen as able to pay more to educate its students, Lorentzen said. Manchester is one of three districts in the state in that situation, he said.

While Manchester's enrollment has decreased, the district has seen increases in the number of students who need special education services, those who are English language learners, and increases in students who receive free or reduced rate lunches, Lorentzen said.

The district's participation in the state's preschool expansion program — Manchester is receiving $3,637,065 in preschool funds for 2023-24 — has been a benefit, Lorentzen said, because it has allowed the district to move some things around in other areas of the budget.

The district started the budget process $2.3 million over the 2 percent cap on increases in the property tax levy, but the preschool program allowed them to save positions by moving staff with preschool certifications to that program, he said.

"This is a completely separate pot of revenue," he said.

The increase in health care premiums — 15 percent for 2023-24 — has been a statewide issue, he said, and is anticipated to be a significant increase in 2024-25 as well.

The district continues to face bus driver shortages, which means they are contracting out more routes, at a higher cost. Lorentzen said the district reached an agreement with its transportation union to increase salaries in a way that allows it to increase salaries for drivers to attract new ones and keep current ones in the district.

The district also has seen an 800 percent increase in the number of students who are receiving aid in lieu, where the district is required to pay a stipend to parents or transport children to private schools outside the district. The stipend is paid when the cost to transport the students exceeds $1,000; the district is reimbursed a portion of the aid-in-lieu costs, but that reimbursement comes in the following year's budget.

The district is continuing its dual credit programs that allow students to earn college credit, summer remediation programs for students who need help, and is able to replace classroom materials along with boosting mental health services for student and resources for English language learners.

More information on the budget can be found in the budget hearing presentation.