Taxes to Rise $217 Under Middletown School Budget

MIDDLETOWN, NJ - Well, the Township saved you about $5 in property taxes, but the Middletown school budget soared to $160 million this year, according to a report in the Asbury Park Press.

If the new school budget is approved, school taxes will rise on average $217 per home. Last year school taxes went up too, about $100 per home.

Part of the reason school taxes are jumping so much is because Middletown finally has to pay back an owed $763,000 payment to the Teachers' Pension and Annuity Fund. As Patch has reported, it's a payment that's haunted the district since 2007, when Middletown improperly offered its teachers up to $40,000 each to retire early. The payment was offered by the district and approved by the school board at the time. A New Jersey appeals court later ruled that retirement payout was unauthorized. Middletown tried to fight the ruling in court, but just last week the state Supreme Court declined to hear Middletown's case. Now, Middletown taxpayers must foot the bill, paying back $736,000 to the pension fund.

But it's not just that payment that increased costs. Teachers' salaries and health insurance costs increased by 3 percent this year, and Middletown spent $1.4 million for new turf field and track at High School South.

On Monday night, Middletown Twp. introduced a municipal budget that actually had a $161,459 drop in spending. And Monmouth County taxes will remain flat.

Things to keep in mind for the future: Middletown school district's contract with its teachers expires at the end of this school year, so union negotiations will be coming up.

Past Patch reporting:

Middletown Board of Education Must Pay Back Pension Fund $3.8 Million, Court Rules

Middletown Lowers Tax Rate With New 2017 Budget