Schools

Taxes Up In Proposed Lacey Schools Budget

An increase in state aid this year isn't enough to cover a $6 million deficit the district faces, officials said.

Tax bills will increase in Lacey under the new proposed school district budget, which includes a 3.5 percent tax increase.
Tax bills will increase in Lacey under the new proposed school district budget, which includes a 3.5 percent tax increase. (Alex Mirchuk/Patch)

LACEY, NJ — Tax bills will increase in Lacey under the new proposed school district budget, which includes a 3.5 percent tax increase.

While the tax increase is capped at 2 percent, a health benefit waiver allowed the district to increase the levy by an additional 1.5 percent, officials said in the budget introduction. The district didn't share yet the details of how that increase will impact the monthly tax bill.

Expenses are up nearly across the board, and despite the district receiving additional state aid this year instead of cuts as they have seen over the past seven years, it's still not enough. The district is facing a $6 million deficit.

Find out what's happening in Laceyfor free with the latest updates from Patch.

"The district's seen over $14 million of state aid cuts over the past seven years," Business Administrator Sharon Ornsbee explained. "That's been really impactful for us."

She said the district can't recoup that money when they can only raise 2 percent each year, equivalent to $1 million, especially considering expenses increasing.

Find out what's happening in Laceyfor free with the latest updates from Patch.

"We can't keep up," Ornsbee said.

The state aid this year was capped to a 6 percent increase and a 3 percent decrease.

"When they actually calculated our state aid this year, we should have gotten $2 million more in state aid," Ornsbee said. "But because they instituted this 6 percent cap, we're only getting $435,000 more. Now, had they put these two caps in place seven years ago, that 3 percent cap would have helped us tremendously."

The district has exhausted their fund balance, meaning they have no excess funds.

Since the district is facing a $6 million deficit, they're looking to sell land to help make up for it. That's similar to what the Toms River Regional School District is doing.

There will be some certificated positions being cut and technology reductions.

A public hearing and final vote on the budget is set for April 29.

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