Egg Harbor Township district proposes budget that keeps tax rate steady; referendum vote set for March 10

The Egg Harbor Township Board of Education reviewed a proposed 2026-27 budget that would keep the local school tax rate steady while using a 1.98% increase in the tax levy driven by rising property ratables.

Business administrator Mr. Smith told the board that the district's proposed general-fund tax rate would remain at about 1.9779 and that the levy option the administration recommends would generate roughly $1.6 million in new revenue. He said the district's budget currently faces a roughly $5.8 million gap based on projected salary increases of about $3.6 million and benefit increases of approximately $3.9 million. "If we take our salaries of 3,600,000, our benefits of 3.9, if we subtract the new revenue, from the tax levy, that gives us a budget gap of about 5,800,000 as of today," Mr. Smith said.

The board also received an update on the March 10 special election referendum to fund capital projects. Mr. Smith said the district's preliminary state aid estimate for the referendum was reduced from $8.7 million to just over $8.0 million — a decline of about $685,000 — after the state revised its funding letter; the district appealed and was denied. "We did make an appeal to the state. Our engineer's office also appealed. We were denied," he said. The administration has posted presentations and videos on the district website and scheduled town-hall meetings and targeted outreach to explain the projects to voters.

Mr. Smith said the district chose a March vote largely for timing around debt-service aid: by financing before July 1 the district hopes to keep the annual debt-service tax levy steady for four years and then capture debt-service aid the following fiscal year. He also gave an estimated cost for running the special election at about $38,000, which the district will pay for vendors and contractors while the county runs the election.

The administration outlined next steps tied to the state budget calendar: Gov. Murphy's budget address is scheduled for March 10, state aid notices are expected March 12, and the board is scheduled to meet March 17 to seek approval of the preliminary budget. Mr. Smith stressed that figures remain fluid until state aid is confirmed: "That number is changing each day as we go through. We get more information from whether it's the state or the federal government."

Board members asked for clarification on the total budget size, capital-reserve figures and the mechanics of past levy reductions; Mr. Smith said that while appropriations may shift, rising ratables partly explain recent levy changes and that prior reductions were accomplished by reducing the tax levy in a given year.

The administration described a range of strategies for closing the projected gap, including using attrition to reduce full-time equivalents, delaying or decreasing non-salary equipment purchases, and multiple departmental reviews. A timeline shared at the meeting notes that once state aid is confirmed in March, the administration will finalize the preliminary budget for board approval.

Votes taken during the meeting approved routine finance items and committee recommendations; one board member noted an abstention on three specified purchase orders while voting in favor of the remainder of the grouped items. The board scheduled and promoted a referendum town hall and informational materials on its website for residents who cannot attend in person.

What happens next: the district expects state aid notifications March 12 and plans to present a preliminary budget for board action at its March 17 meeting; the referendum vote is scheduled for March 10.