Middletown Schools To Lose $1.1 Million In New School Funding Formula

MIDDLETOWN, NJ — Democratic lawmakers in Trenton are currently hashing out a new school funding plan that overall would increase state educational funding. But that same formula also severely slashes state aid to certain suburban school districts. And Middletown is one of them.

While there are some winners and losers in the new school funding formula, one thing is clear: If the formula goes through as is, Middletown will be one of the losers. Right now, the Middletown Township public school system is slated to see a $1,179,200 decrease in state aid for the 2017-2018 school year.

"It's a big hit; it's a lot of money," Middletown Superintendent Dr. Bill George told Patch. "To take almost $1.2 million away from us after we already approved our final budget and now that we're just days away from July 1 is a really hard thing to bear. This is very difficult for us."

The school funding changes were proposed as part of a budget deal from Senate President Stephen Sweeney (D-Gloucester) and Assembly Speaker Vincent Prieto (D-Hudson). The New Jersey legislature will likely approve the final budget this week. But Republican lawmakers are howling that the suburban school districts they represent are being unfairly hit.

“I warned that we were likely to see a political school funding plan from Democrats since it’s an election year, and that’s exactly what they announced,” said state Sen. Jennifer Beck (R-Monmouth). “Their plan largely hurts Republican districts to help Democrats, and doesn’t provide the comprehensive school funding reform that New Jersey deserves.”

If the deal is approved, it means Middletown property owners will have to pony up more in taxes in coming years to fund its schools, said Dr. George.

"Before Middletown’s state aid was reduced in 2009-2010, property taxes funded 82.8 percent of the school budget. In 2017-2018, that percentage is now 87.3 percent," said Dr. George. "The proposed state aid reduction for 2017-2018 will have no impact on property taxes for this budget year since the budget is already finalized and adopted. However, this reduction will carry forward to budgets in future years and continue to compound."

Districts with increased enrollment get increased aid

The changes in state aid vary widely from town to town: Towns like Freehold and Red Bank, which have seen big increases in students, are getting more money. In fact, Freehold will receive $1 million more. Holmdel would receive $161,159 more. Rumson-Fair Haven Regional would gain $56,000. But Keansburg schools would lose $517,808 and Marlboro schools would lose $532,737. Hazlet would see no change in state aid.

Other local districts would be badly hit, as well: Toms River Regional could lose $3.3 million. Manalapan-Englishtown Regional could lose $1.2 million.

Middletown's student population has stayed flat over the past several years, a fact that's now hurting the district in Trenton.

"I understand that districts that have seen increases in population are getting more funding and I applaud that. But we've been flat in student population increases," said Dr. George. "I think that's part of what's playing into the formula."

Here is how a variety of school districts in Monmouth County will be affected if the new formula goes through:

Unfortunately, reductions in state funding are nothing new for the Middletown school district, Dr. George said. Middletown schools are already operating with $3.1 million less in state aid than they were prior to in 2009.

"The district has managed its budget over the last eight budget cycles to adjust for the $7.2 million reduction in state school aid that was levied between the 2009-2010 and 2010-2011 budgets," said Dr. George. "During that time, the district has restructured its operations and enhanced its programs and facilities while absorbing the additional state mandates and costs of increased security that have been necessary. State aid has increased over the past seven budget cycles, but the original state aid allocation for the 2017-2018 budget is still $3.1 million less than the 2009-2010 aid amount. Since 2010, Middletown has recovered only 57 percent of the 2010-2011 aid reduction. If this current proposal is implemented, that percentage will be reduced to 40 percent."

While Sen. Beck applauded increasing support for underfunded districts like Red Bank and Freehold borough, she said the Sweeney/Prieto plan wouldn’t help most of the 421 school districts that she says overtax residents locally through property taxes to account for years of insufficient state aid.

“I don’t know how you tell school districts that already adopted budgets to cut millions and lay off teachers who already signed contracts,” she said.

Patch file photo of Middletown High School South