Hoboken Public Schools unveil $88M budget and tax levy increase for 2025-26

During a recent meeting of the Hoboken Board of Education, key discussions centered around the district's funding structure and the implications of state aid on the upcoming 2025-2026 budget. The meeting aimed to provide clarity on how state funding formulas and local tax levies impact the Hoboken Public School District's financial landscape.

The meeting began with an overview of New Jersey's statutory cap on tax levy increases, which is set at 2% annually. This cap can be exceeded under specific circumstances, such as rising health care costs or increased student enrollment. Notably, if the district does not utilize the full 2% increase or eligible waivers, it can "bank" this unused increase for future budgets. Hoboken is eligible for a banked cap of approximately $169 million, indicating the district's capacity to raise taxes based on state calculations of local property values and income.

The current state aid funding formula, known as the School Funding Reform Act (SFRA), determines aid based on enrollment, property values, and income levels. For the 2025-2026 budget, Hoboken is projected to receive $8.7 million in state aid, which is a decrease of about $1.8 million from the 2018-2019 fiscal year. This budget marks the first time since 2020 that the district will not have access to additional federal COVID relief funds, which were previously used for various educational and maintenance expenses.

The total operating budget for the 2025-2026 school year is set at approximately $88 million, with local tax levies accounting for about 84% of this budget. The proposed increase in the school tax levy is $6.4 million, translating to an estimated annual cost of $236 for the average homeowner in Hoboken.

The meeting emphasized the importance of investing in public education, highlighting the district's commitment to supporting its student population through targeted programs and personnel. Attendees were encouraged to engage with the district's initiatives and understand how their tax contributions play a crucial role in fostering educational growth and success.

As the Hoboken Public School District prepares for the upcoming budget year, the discussions at this meeting underscore the ongoing challenges and considerations surrounding school funding, local taxation, and the broader implications for the community's educational landscape.