Matawan-Aberdeen staff outline budget shortfall and state tax-incentive option as residents demand itemized plan

At a district budget workshop, Matawan-Aberdeen Regional School District staff said a change in the state2010 funding formula and a new three-year averaging of local indicators has left the district "under adequacy," exposing a gap between what the state says the district should raise locally and what the district27s 2% levy cap allows.

The issue matters because staff said the under-adequacy finding makes the district eligible for a state tax-incentive program that would match a portion of any increase in the local tax levy, but participation requires the board to exhaust allowable levy adjustments and adopt a board resolution. Residents at the meeting urged the board to provide an itemized explanation of how any additional levy revenue would be spent.

District presenters said the budget mix is dominated by local property taxes (about 70.4% of the budget), with state aid and federal funds covering other portions; staff noted use of fund-balance and prior reserve withdrawals for repairs but said fund-balance cannot be used for salaries. They…