Ocean Township board hears budget update, auditorium repair progress as public raises potential $1 million shortfall

School Business Administrator Lewis Hastings told the Township of Ocean School District Board of Education on Monday that the district submitted a tentative budget to the county education office for review and is awaiting that office's questions and recommendations.

The presentation also included an update on repairs to the high school auditorium after water damage over the winter; Hastings said carpeting, paint and back sound panels have been replaced and that temporary sound and lighting systems will be in place for upcoming school events.

Why it matters: Hastings said the tentative budget is a draft and could be revised following the county office review before the district advertises the full budget at least five days prior to a public hearing in April. Board discussion and a public commenter focused on whether the district faces a budget shortfall and how administrators will communicate proposed cuts or reorganization to the community.

Hastings said the district agreed on expected revenues used to prepare the tentative budget but that expenditures "need to be trimmed back a little bit further." He said the district does not qualify for a recently announced state tax-aid option because, he said, the district is spending above its SFRA adequacy budget. Hastings described the School Funding Reform Act (SFRA) as the state formula for determining adequacy and said the formula has known issues, including use of older data and limited adjustments for inflation.

During public comment, Alex Hayes, a virtual caller, quoted Hastings and pressed staff on how the budget would be publicized. "You literally just said, 'we will advertise the full budget in the newspaper,'" Hayes said, adding he assumed the board meant it would publish notice of the hearing rather than the full budget document. Hayes said parents and taxpayers wanted the budget in a more accessible form than "spreadsheet after spreadsheet" and asserted the district was "about a million in the hole," asking what positions or programs might be cut and whether the district would consider closing or reorganizing school buildings.

Board members asked for clarification about state programs that had affected funding in recent years. Hastings said an earlier program known as "S2" that reallocated aid based on enrollment has expired and that the SFRA remains the controlling formula. He also described a recent state notice allowing some districts that spend below their adequacy budget to raise their tax levy by up to $1 million or 5% of the levy (whichever is less); he told the board the district did not qualify for that option because it is spending above its adequacy budget.

No formal budget vote occurred at the meeting. Hastings said the county office review is expected in the next week or two; administrators will consider any recommendations, make necessary adjustments and then advertise for the public hearing.

The board's next steps: staff will await the county office's feedback, revise the draft as needed and publish required hearing notices. The meeting record did not show a specific decision about program or personnel reductions or any formal motion to close or consolidate buildings.