Red Bank Public Schools Look To Bypass Tax Cap

RED BANK, NJ — The Red Bank Borough Public School District has applied for the state’s new Tax Levy Incentive Aid program, joining over 200 school districts throughout NJ that qualify, Superintendent Jared Rumage said.

The program was announced in early April and represents a one-time exception to the 2% cap on any tax levy increase designed to support school districts that are under adequacy and under their local fair share, as deemed by the NJ Department of Education (NJ DOE).

According to Rumage, the Red Bank Borough Public School District is currently considered $6.5 million under adequacy, and is one of 280 districts in New Jersey and one of 20 in Monmouth County that qualify for the program.

Other Monmouth and Ocean County school districts applying for aid include the Hazlet Township Public School District, the Brick Township Public School District and Toms River Regional Schools, which are each facing their own budget challenges.

In Red Bank Public Schools’ 2025-2026 budget presentation, district officials outlined some of the financial challenges the district is facing for the upcoming school year, including:

• A decrease in overall funding of $2.5 million
• $1M in preschool education aid
• $1M in state equalization aid
• $400K in federal funding and Medicaid
• $100K in mental health aid
• A continued rise in annual fixed costs (contractual obligations, transportation, utilities, health benefits, etc.) exceeding the 2% cap on the local tax levy increase

During a special Board of Education meeting on April 10, the board introduced their application submission for additional expenditures and the tax incentive aid, which stated that the board is “eligible to increase expenditures by $1,951,510 and qualify for tax levy incentive aid in the amount of $92,929.”

In a letter posted on the district website, Rumage said the board needed to make a decision in a short period of time based on the release of information regarding the tax levy incentive aid.

“After a deliberate assessment of our current situation heading into the 2025-26 school year and also considering the next five years, it was evident we needed to take advantage of this one-time opportunity," Rumage said.

“The 2% cap is suffocating all public school districts in New Jersey; however, our Board of Education is always mindful of our budget’s impact on the local taxpayer,” Rumage continued. “While our past history clearly shows a hesitancy to stray far from the 2% increase, this infusion of funds will enable us to continue our outstanding service to the community.”

“Moving forward, we anticipate remaining closer to the 2.26% tax levy increase we have averaged over the past five years,” Rumage said.

By applying for the aid program, district officials said the increase in the tax levy will generate approximately $2.57M, offsetting the overall aid increase.

Additionally, officials said the incentive program will generate $93K in additional state aid, and impact the average household’s quarterly tax statement by $132.

The revenue will go towards supporting the district’s Strategic Plan, Dream BIGGER: A Five-Year Roadmap, officials said, which hosts five main goals to accomplish from 2024-2029:

1. Offer a well-rounded and challenging student experience to meet student needs and increase opportunities for all students in academics and extracurricular programming
2. Explore new ways to streamline district operations and bolster district finances by optimizing available resources
3. Build authentic community partnerships and relationships as a means to increase involvement
4. Foster strong relationships between educators, students, and families to support academic achievement and personal growth
5. Promote a culture of healthy living so students, staff, and the greater community can fully engage in the educational process

The board said they expect feedback from the NJ Department of Education on their application before the end of April. The next board meeting is a public budget hearing scheduled for April 29.

To read the full letter from Superintendent Rumage, you can click here. To see the full 2025-2026 budget presentation, you can click here.

Editor's Note: A previous version of this article said the incentive program would generate $93M in additional state aid, instead of $93K. The article has since been corrected.

Related

• Hazlet BOE To Vote On Tax Levy Incentive Aid At Special Meeting
• Brick Schools Applying For New Tax Levy Incentive Aid
• Toms River Regional Schools Applying For New NJ Tax Levy Incentive Aid