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South Brunswick proposes 1.76% tentative tax-levy increase as state S2 formula cuts aid
Summary
The South Brunswick Board of Education reviewed a tentative 2026–27 budget with a proposed 1.76% tax-levy increase ($2.4M) and detailed how the stateS2 funding formula and enrollment declines have reduced equalization aid, increasing local reliance on property taxes.
South Brunswick Superintendent Dr. Bragan and district finance staff on Thursday presented a tentative 2026–27 operating budget that proposes a 1.76% increase in the school tax levy, or about $2.4 million, citing sustained reductions in state aid under New Jerseythe S2 funding formula.
The board heard that the districtoperating budget is heavily dependent on local property taxes—about 88% of operating revenues—and that state equalization aid has fallen as South Brunswickis designated under S2. "The S2 formula has pushed us into a position where our local fair share exceeds the stateadequacy budget," said the districtbusiness official presenting the figures. The presentation showed the districthas seen multimillion-dollar declines in state aid over recent years.
Officials illustrated the mechanics with local figures. The district reported enrollment falling from 7,535 students in 2021 to 6,336 currently, while equalized property values and local income rose; that combination, officials said, increases the districtlocal fair share and reduces eligibility for equalization aid. "Because your property values are going up and enrollment is declining, the stateformula's outcome is that you receive little to no equalization aid," the presenter said.
District leaders said they built the tentative budget by targeting efficiencies and making limited personnel and operational reductions while preserving core programs. The presentation listed three principal budget drivers: negotiated salary obligations (shown as about $3.1 million in increased salary costs for next year), employee health-benefit increases (about $3.2 million) and constrained tax-levy growth (the statutory 2% cap on the levy). The administration also noted one-time savings identified through an RFP for health-center providers and staffing reductions that reduced the need to reach the full 2% cap this year.
The financial team described the boardproposal to take 1.76% this year and bank the unused 0.24% (the "banked cap") for potential use in subsequent years. The proposal would translate to an estimated $57 annual tax increase on a $200,000 assessed home and $85 on a $300,000 assessed home, the business office said.
Board members discussed whether to take the full 2% this year. Some trustees said they were reluctant to repeat the large tax increases enacted in the past two years; others noted that taking the full 2% builds the base and provides future flexibility. The board ultimately approved the tentative budget as part of the consent agenda roll call.
The district stressed that the tentative budget must be submitted to the state by March 27 and will return to the board for final adoption at the May 7 meeting. "We are building a budget that meets educational needs while recognizing the fiscal constraints our community has faced in recent years," Dr. Bragan said.
The meeting packet and a user-friendly budget summary will be posted after the final adoption process, officials said.
