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District projects modest aid increase as state changes special-education and equalization calculations
Summary
Administrators told the board the district will present a tentative FY 2025–26 budget March 20 after state formula changes: adjustment aid removal, a three‑year equalization look, and special-education funding based on October 15 enrollment rather than census.
District administrators told the board they will present a tentative budget for fiscal year 2025–26 at the March 20 meeting and that several state-level changes are shaping the projection.
Administrators said adjustment aid has been removed from calculations and the state is now using a three‑year look at property values and income for equalization; Monmouth County performs an annual review of property values under a pilot program that began in 2013. The district reported an overall increase of about $300,000 in projected state aid despite a reported enrollment decline of roughly 75 students.
A notable technical change: administrators said special-education aid will be calculated using actual enrollment numbers from the October 15 snapshot rather than census-based data, which the administration called an improvement. They also said federal allocations are more constrained: guidance suggested districts budget at a lower percentage of last year’s federal grants and that Medicaid reimbursements for certain services were reduced, with report of reimbursement rates falling and federal projections at a lower budgeting baseline.
Administrators said they are working with Rutgers on studies to inform the budget and that public hearings on the tentative budget must occur between April 20 and May 7; they reminded the board of required public-notice timelines. They also noted uncertainty in federal and Medicaid funding and said those reductions will be factored into the tentative budget.
Board members asked clarifying questions about equalization and the three‑year look at property values; one trustee noted rising local housing costs and urged careful attention to how the state’s methodology treats rapidly changing property values.
Administrators said they would return to the board with the tentative budget and public‑hearing schedule in March and will adjust projections as federal guidance and Medicaid reimbursement details are finalized.
