District Uses State Aid Boost to Eliminate Tax Increase

Thanks to , knocked its projected tax increase down to zero in a preliminary budget introduced Wednesday.

District business administrator Lynn Shugars to the board of education at the end of January calling for a net tax increase of $903,687, or 1.55 percent. For homeowners assessed at the township average of $529,800, that would translate to an approximate $112 increase.

Shugars’ early forecast projected $2.1 million in state aid—flat from last year, minus the $613,000 .

Instead, Moorestown will receive $2.9 million from the state in 2012-13, making it one of only 48 districts out of roughly 600 statewide to receive an increase in state aid, according to Shugars.

Consequently, the preliminary budget she presented to the board Wednesday kept the tax levy flat.

Though the district’s general fund tax levy is projected to increase slightly ($165,522, or 0.3 percent, more), it’s offset by an identical drop in the debt service tax levy, Shugars said.

The board unanimously adopted the budget, which will now be sent to the county Office of Education for approval. Over the next few weeks, the board will continue to tweak the budget, with a public hearing scheduled for the end of March, followed by final adoption.

Since , the district no longer has to seek voter approval on the budget as long as it stays below the 2 percent cap.

A few other highlights from the budget presentation:

• The district plans to cut three full-time positions. Board President Don Mishler said they don’t yet know exactly where those cuts will come from, but more than likely they will occur at the elementary school level.
• The budget includes an investment in new capital projects, as well as the replacement of two buses. Board members discussed reevaluating capital spending in light of the boost in state aid.
• Enrollment across all grade levels, except for the , is expected to continue to decline. The district dropped from 4,255 students in 2010 to 4,073 in 2011. The district is projecting 4,003 enrolled students at the beginning of the 2012-13 school year. Grades 9-12 are the only ones expected to see an increase, with 1,397 projected enrollments in Oct. 2012, up from 1,369 at the beginning of this school year.