South Brunswick Schools Propose $180M Budget With A Tax Increase

SOUTH BRUNSWICK, NJ — South Brunswick's Board of Education unveiled a tentative $180.4 million budget for 2026-2027 with a 1.76% tax levy increase, closing a $3.3 million structural gap through personnel and operational cuts.

The total tentative budget of $180,444,103 would require $145,911,062 in taxes to be raised across the general fund and debt service. The proposed general fund tax levy of $144,107,812 represents an increase of $2,492,310 over the prior year's approved levy of $141,615,502.

A home assessed at $200,000 would see an annual school tax increase of approximately $57.20, while a home assessed at $300,000 would see an increase of approximately $85.80.

Superintendent Bernard F. Bragen Jr. and Assistant Superintendent/Business Administrator David Pawlowski presented the budget, which they said was shaped by three primary pressures: rising salaries, soaring health benefit costs and declining state aid.

Salary obligations are projected to increase by $3,163,910 while health benefit costs are expected to rise by $3,252,000 — together creating a budget gap of $3,583,600 that exceeds the district's allowable 2% tax levy growth of $2,832,310.

To close the gap, the district made $3,358,405 in net reductions: $958,405 through staffing adjustments via attrition and position reductions, $400,000 in operational spending cuts and $2,000,000 through revised healthcare projections and plan management.

The budget is further strained by continued cuts in state aid. South Brunswick received a reduction of $415,429 for fiscal year 2027 — the maximum allowable 3% cut under the state formula — even as New Jersey increased total state education aid by $372 million statewide and Middlesex County as a whole gained more than $23 million. The district's total state aid has fallen from $24.8 million in 2018-19 to $13.4 million in 2026-27, a cumulative annual loss of more than $11.4 million.

Officials said the reductions stem from the district's rising property values and household income levels, which under the state's funding formula reduce South Brunswick's calculated need. Because the district's Local Fair Share — the state's estimate of local funding capacity, set at $168,186,716 — exceeds its Adequacy Budget of $143,299,992, South Brunswick receives zero Equalization Aid, a resource available to many other New Jersey districts.

Salaries and benefits account for 79.5% of the total operating budget. The local property tax levy constitutes 88.1% of all district revenue, with state aid making up 8.2%, fund balance 2.8% and miscellaneous revenues 0.7%.

Regular education enrollment has declined steadily from 7,535 students in 2020-21 to a projected 6,336 in 2026-27. Special education enrollment has remained relatively stable, with 879 students projected for the coming year.

The district also said it would bank $1,340,795 in unused levy capacity — $340,000 in tax levy and $1,000,795 in health benefits waiver — to preserve financial flexibility in future budget years.

The tentative budget is scheduled to be submitted to the Executive County Superintendent on March 27. A public hearing and final budget adoption are set for May 7, with a public summary to be posted on the district's website May 8.

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