Haddon Township School District outlines options to close budget gap as state aid falls

HADDON TOWNSHIP, N.J. — The Haddon Township School District superintendent told residents at a community forum that consecutive reductions in state aid have created a projected multi‑year budget shortfall and forced the district to consider a mix of tax increases, use of one‑time reserves and program cuts.

The superintendent said the district had some state aid reduced last year and received a partial restoration; he said a more recent reduction and the withdrawal of funds earmarked for staffing mean the district now faces roughly $1.08 million in reduced state aid over two years and expects an additional projected withdrawal of about $637,000 next year. He described the state formula’s reliance on aggregate income and the 2% local tax levy cap as key drivers of the shortfall.

“Let’s hear from our community first before we delve into the tentative process for constructing a budget,” the superintendent said, explaining the forum format and urging residents to submit questions. He described options the board will consider in the coming weeks and said the district must submit a tentative budget to the county by the statutory deadline to preserve eligibility for a newly announced state program distributing $20 million among eligible districts.

Why it matters: state aid that districts use to fund staffing and programs has shifted under a state formula that the superintendent said treats aggregate income as a key variable and applies a 2% cap on annual school tax levy increases. That combination, he said, has reduced aid to a number of middle‑income suburban districts and created steep choices for Haddon Township.

What the district presented

- The superintendent presented four broad options for closing the gap: a traditional 2% local tax levy increase (the maximum typically allowed without a voter referendum), use of “bank cap” and other adjustments that could raise the levy up to about 9.3%, a larger tax increase (he cited 17.4% as the theoretical amount that would avoid cuts assuming no federal funding changes) and an extreme projection the state’s calculation would imply (about 31.8%). He emphasized the board has not decided which to pursue and that some paths require state approval.

- Short‑term and one‑time measures under consideration include asking vendors for 10% cost reductions, borrowing temporarily against funds designated for the referendum project for the Lower Aquino fields, tapping an unemployment reserve account (the superintendent said $500,000 is in that account), using interest from bond investments, and requesting state permission to use up to $300,000 from capital reserves. He also mentioned the possibility of selling the district’s bus fleet and leasing buses back as a short‑term cash option.

- The superintendent said the district must submit a tentative budget promptly to be eligible for the state’s tax‑levy incentive program; officials said the program’s rules and the amount the district might receive (the department’s guidance referenced aid from as little as about $26,000 up to as much as $1,000,000 in different scenarios) remain unclear.

Budget figures and recent state actions cited at the forum included: a two‑year state aid reduction totaling about $1,080,000; an additional recent reduction of roughly $174,000; the state’s earlier restoration of aid at 45% after appeals; and a referenced $362,000 that the superintendent said had been previously awarded for staffing and is now being withheld. The superintendent characterized those figures as the district’s current understanding and said some amounts remain under contest with state officials.

Board process and deadlines

The superintendent said the tentative budget must be filed with the county by the deadline (the district cited March 19 as the upcoming submission date) to preserve participation in the state program; submitting a tentative budget does not lock the district into final decisions, he said. The board plans further budget work sessions and a public hearing in May to finalize the budget.

Public comments and community priorities

Parents and students at the forum urged the board to protect specific programs. Andrea Hogman, a parent, said, “Full day kindergarten is important. Our kids need it,” and asked the district to prioritize keeping full‑day kindergarten. A ninth‑grade student, Eleanor Tomlin, asked the district to consider the student‑wellbeing impact of cutting arts and world‑language offerings: “I want there to be consideration in terms of keeping teachers who may not be essential to every student, but are very critical to a group of them.” Other residents urged exploration of shared services and long‑term consolidation discussions, and one speaker urged the board to consider balancing cuts with tax increases to avoid further deep reductions.

What was not decided

There were no formal votes taken at the forum. The board had not selected a budget path by the session’s end; the superintendent said the forum was intended to inform the board’s preliminary choices before a follow‑up work session and the formal budget process.

Next steps

The superintendent and board members said they will continue public engagement through additional meetings, will file a tentative budget by the county deadline to preserve options, and will return to the public for the required hearings before any final cuts or tax changes are adopted.