School district seeks 6.87% tax hike

Citing substantial reductions in state aid, the Byram Township School District is seeking permission from the state to raise the local tax levy by 6.87 percent in the 2025-26 budget, Superintendent Kurt Ceresnak said.

That is well above the mandated cap of 2 percent on tax hikes in school budgets.

“Over the past several years, Byram has been significantly impacted by New Jersey’s school S2 funding legislation, resulting in substantial reductions in state aid,” Ceresnak said.

“As a result, we’ve been forced to make difficult decisions, including making numerous staff and program cuts. This year, the New Jersey Department of Education notified eligible school districts, including Byram, that they could apply to the commissioner of education for an increase in expenditures beyond the 2 percent tax levy tax because we are taxing well below local fair share, falling short by over $1.3 million.”

When S2 was signed into law by Gov. Phil Murphy in 2023, the funding formula shifted.

“I think the initial goal of S2 was to better allocate funds based on factors like student needs and local economic condition,” said Ceresnak. “One of the big factors of the formula is property wealth and income.

“A great deal of state aid goes to more urban areas. I personally think communities like Byram get a raw deal. The funding formula does not consider factors like cost per pupil (and) Byram has one of the lowest costs per pupil in Sussex County. The funding formula does not account for rising special-education costs either.”

The Board of Education voted last month to submit an application to increase the local tax levy by an additional $700,000.

The board decided not to seek the full amount because of the financial stress it could cause taxpayers, Ceresnak said.

If the application is approved by the state, taxes on the average assessed home in Byram would be an additional $91.96.

“We have not been given a date by the state, so we are unsure when we will hear back,” the superintendent said. “The $91.96 is the difference between the 2 percent and the 6.87 percent increase.

“With a 6.87 percent increase, it will be $19.47 a month, or $233.64 a year, for the average assessed home. With a 2 percent increase, it will be approximately $11.81 a month, or $141.68 for the year.

“Additionally, the state will provide us with an additional 5 percent state aid on any total tax levy increase up to $1 million ... . A decision to increase taxes is never easy. With that being said, we need to make sure we continue providing a robust education for our children.”

Ceresnak said that is the state approves its application, “the district can move forward and no other further voting or action is needed.”