An increase in K-8 school taxes for the 2016–2017 school year will raise taxes for Shamong residents.
The Shamong Board of Education unanimously approved the 2016–2017 school budget at its May 3 meeting. The average assessed home at $308,080 will see an increase of $120.95 in K-8 school taxes.
The general fund expenditures for the 2016–2017 school year will total about $14.2 million, a 1.18 percent increase over last year. Including special revenues and debt service, the total is $15.3 million. With the debt service aspect of the budget, there is a 2.81 percent increase in the tax rate.
The debt owed by the district is in large part due to the unauthorized early retirement plan from more than a decade ago, according to Business Administrator/Board Secretary Marie Goodwin. This issue surfaced about a year ago when the state Division of Pensions and Benefits, which oversees all pensions and benefits for public employees, argued that Shamong’s early retirement benefits program was never properly approved by the state, and therefore the district now owes the state money.
The program was approved by the Shamong BOE in November 2004 to incentivize early retirement of employees to save money. However, New Jersey court cases in the past have interpreted state statute to mean that boards of education cannot negotiate early retirement incentive programs without first having state approval.
The board plans to use its $200,000 of bank cap to put toward this. The pension liability in total will be $646,817, so this $200,000 payment will only cover a portion of the penalty. Without this penalty, the tax rate increase would have been less than 1 percent for this year, officials said.
The budget continues all programs, including athletic and extracurricular activities. It also supports increases in technology.
The 2016–2017 budget was unanimously approved by the board 4–0, with Jeffrey Siedlecki being the only board member absent that evening.
In total, the average Shamong homeowner at $308,080 will pay about $250 more in property taxes this year, when considering municipal and school tax increases. The K-8 school district’s budget will see an average increase of $120.95, the Lenape Regional High School District’s proposed budget includes a $62.94 average increase and the municipal tax increase was approved at a $61.60.
In other news:
Laura Archer was unanimously approved for the position of business administrator/ board secretary for Shamong Township Schools. She is slated to start July 1.
