Collingswood board to apply for NJDOE tax-levy incentive as one-time option to close $3.6M gap

Collingswood's Board of Education held a special meeting to explain the New Jersey Department of Education's one-time Tax Levy Incentive Aid program and to discuss three funding scenarios that administrators say could prevent mass layoffs and program cuts.

Administrators told the board and the public that the district faces a $3.6 million operating deficit this year and an $8.7 million local fair-share shortfall for next year. The district plans to request permission from the NJDOE to exceed New Jersey's 2% property-tax cap for one year; the department would provide an additional one-time incentive equal to 5% of the local increase.

The presentation outlined three options: a maximum request of about $6.1 million (the district's example equated that to approximately $111 per month on the average household), a mid-level option (~$5.4 million; about $98/month), and a minimum option (~$3.8 million; about $69/month). Superintendent (speaker 5) and district staff said the larger scenarios would allow the district to avoid the "nuclear" cuts it described20'including the potential loss of 30 to 35 positions, closure of an elementary school, and conversion of extracurriculars to pay-to-play.

The board was explicit that no tax increase would be set at this meeting. Board leadership said the Thursday vote will be limited to approving the district's application to the NJDOE so Trenton can determine the maximum allowable increase; the board will then decide whether and how much to adopt when it votes on the 2025-26 budget at a public hearing scheduled for May 5. "We are applying to see what the state will approve; the board will then decide how much, if any, we will take on," the chair said.

Administration also described steps required in the state review: every dollar of the proposed levy increase must be justified by line-item explanations produced by the business administrator; Trenton staff will review submissions and notify districts of approved amounts roughly within one to two weeks, officials said.

The presentation and a later Q&A stressed that this program does not replace longer-term advocacy for fairer funding and warned the one-time increase must be used with attention to multi-year stability. Superintendent (speaker 5) said the district has reduced operating budgets by about $5 million over three years and that federal grants supporting a middle/high school wellness center expire in 2026; the tax-levy option would permit the district to fold some grant-funded services into the operating budget.

The board also discussed an ongoing partnership with the Borough, which proposed a $15 million bond that could support athletic-field redevelopment and temporarily assist the district. Administrators said the joint agreement calls for using the NJDOE program, if available, to reduce how much the Borough must contribute.

The board will take a vote Thursday only on whether to submit the application to the NJDOE; the public hearing and final budget adoption (and any tax vote) are scheduled for May 5.

Public outreach and transparency steps promised: the district said slides and a one-page FAQ will be posted on the district website the next day; the business administrator will prepare line-item justifications that the board and (administratively) will review before application submission.

The application timeline and the need to justify every proposed levy line were emphasized repeatedly; administrators said they would post the application internally for board review before Thursday and consult with the state about public access afterward. The meeting closed with no vote on the levy itself and the board scheduled to reconvene for the application vote.