Hillsboro board votes to apply for state 'tax incentive aid,' prompting heated debate over potential $22.9M levy

The Hillsboro Township Board of Education on April 7 voted to authorize the superintendent to submit an application to the state seeking permission to increase the district's local tax levy — a one-time application that could allow the district to request up to $22,931,626 as part of a state program that would add a 5% match (capped at $1 million) if the state approves.

Board President Mr. Vulpi framed the night as an exploratory step: “We are not deciding any tax increase tonight,” he said, stressing that a successful application would only give the district options to use when adopting the final budget on April 28. The state, he said, set a tight deadline: applications must be filed by April 14.

Why it matters: District leaders said the program offers a way to restore years of state aid cuts and to reverse program and staffing reductions that have left class sizes larger and services pared back. The administration’s scenarios described restoring $4.6 million in cuts for 2025–26 (including courtesy busing and middle-school sports), rehiring positions the district eliminated, upgrading deferred capital items and preparing for full‑day kindergarten implementation in later years.

Supporters at the meeting — including teachers, parents and union representatives — urged the board to keep options open. “By not passing this resolution tonight, you are slamming the door on the students of Hillsboro,” teacher and union member Gans Bates told trustees during public comment, urging them to apply so the district can learn what the state would approve.

Opponents cautioned the board against taking a step that could reshape the local tax base without stronger guarantees from Trenton. Resident Phil Gans Marshall called the state offer “a government shell game,” and said he feared a permanent local tax increase for a relatively small state match. “This sounds like the deal from a used car salesman. Act fast. Don’t think about what you’re doing,” another resident said during public comment.

Board debate centered on two risks: (1) raising the local levy could risk the state reducing other aid in future years (effectively neutralizing local increases), and (2) asking residents to shoulder potentially large, lasting tax increases without a referendum or clearer public input. Board member Mr. Davis voiced reluctance to impose a large levy increase without a town vote; Miss Nurse said she would vote to explore the option because she worried the alternative was immediate staff and program cuts.

What the board actually approved: The new line item (13.12) added the superintendent’s application to the agenda and, by majority vote, authorized staff to apply to the state for an expenditure increase request of $22,931,626. The action does not itself change the 2025–26 budget or the tax levy; the board must still decide whether to accept any state-authorized increase when it adopts the final budget later this month.

Next steps: Administration will submit the application and the district has scheduled a community engagement session on Thursday at 7 p.m. to solicit public input and run committee discussions before the April 28 final budget vote. The state will review the application and may approve some, all or none of the requested amount; any approval will require the board to vote again to incorporate those funds into the final budget.

Board members and residents left the meeting divided but clear on the procedural sequence: tonight’s vote kept the option on the table, while the community engagement session and committee review will determine whether trustees take the additional step of adopting a higher tax levy later this month.