The Upper Freehold Regional School District Board of Education has introduced a $42.8 million budget that will fund the operation of the district during the 2018-19 school year. The budget appears to leave Allentown property owners with stable school taxes, but it may hike the school taxes of a person who owns the “average” home in Upper Freehold Township by more than $300.
Following a discussion among district administrators and board members, the budget was introduced on March 28. A public hearing is scheduled for 6 p.m. April 25 at the Newell Elementary School in Allentown. The budget, which may be revised until that time, may be adopted by the board following the public hearing.
Upper Freehold Regional serves children from Upper Freehold Township and Allentown in kindergarten through 12th grade. Residents of Millstone Township attend the district’s Allentown High School through a send-receive relationship.
The $42.8 million budget for the 2018-19 school year will be supported by a total tax levy of $26.64 million. Upper Freehold’s residential and commercial property owners will pay $23 million (86.3 percent) of the tax levy and Allentown’s residential and commercial property owners will pay $3.64 million (13.7 percent) of the tax levy.
The 2017-18 budget totaled $41.7 million and was supported by a $25.63 million tax levy consisting of a $22 million tax levy in Upper Freehold (85.9 percent) and a $3.63 million tax levy in Allentown (14.1 percent).
In Upper Freehold, the school tax rate was $1.813 per $100 of assessed valuation in 2017-18 and the owner of a home assessed at the township average, $464,500, paid about $8,421 in school taxes. In 2018-19, the tax rate is projected to be $1.883 and the owner of that home will pay $8,746 in school taxes, an increase of $325, according to the board.
For the owner of a home in Upper Freehold that was assessed at $450,000 in 2017 and is still assessed at $450,000 for 2018, school taxes will increase $315, from $8,158 to $8,473.
In Allentown, the school tax rate was $1.891 per $100 of assessed valuation in 2017-18 and the owner of a home assessed at the borough average, $289,483, paid about $5,473 in school taxes. In 2018-19, the tax rate is projected to be $1.8907 and the owner of that home will pay $5,472 in school taxes, a decrease of $1, according to the board.
For the owner of a home in Allentown that was assessed at $350,000 in 2017 and is still assessed at $350,000 for 2018, school taxes will decrease $1, from $6,618 to $6,617.
District administrators said the difference in the tax impact between Upper Freehold and Allentown is the result of the tax levy distribution. They emphasized that the percentage of the tax levy that is paid by Upper Freehold property owners and the percentage that is paid by Allentown property owners is not determined by school board members.
School taxes are one component of a property owner’s tax bill and individuals pay more or less in taxes depending on the assessed value of their home and/or property. The property tax bill also includes municipal and county taxes.
In addition to the tax levy, other revenue for the Upper Freehold Regional’s 2018-19 budget includes $197,616 from surplus (savings) and $5.8 million in state aid. District administrators have estimated receiving an additional $183,500 for extraordinary aid, but said they do not yet know if they will receive that money.
