By Greg Forester, Staff Writer
The Princeton Regional Board of Education has unanimously approved a preliminary 2009-2010 school budget that increases school tax rates in Princeton Borough and Princeton Township by 7.5 cents and 1 cent, respectively.
The rate hikes mean a borough homeowner with a residence assessed at the average value of $351,761 will see their school taxes go up by $269, to a total of $7,129, as the tax rate increases to 7.5 cents to $2.04 per $100 of assessed value. In Princeton Township, a homeowner with residence assessed at the average value of $434,108 will see their school taxes go up by $29, to $7,675, as the tax rate increases to $1.71 per $100 of assessed value.
The $74.1 million operating budget, approved Tuesday, now goes to the Mercer County executive superintendent’s office for review, in advance of a March 31 public hearing and likely adoption by the board.
The size of the operating budget represents a .98 percent increase over last year’s $72.7 million budget.
The total tax levy of $57,922,997 represents a 1.68 percent increase over last year’s $56,965,650 levy.
State law caps increases in the total tax levy to 4 percent.
The discrepancy in the increase is due to changes in the value of property in the two municipalities, which determine the share of the total tax levy for each municipality.
The fluctuation in property values have resulted in larger increases for borough homeowners over the last few years.
Stephanie Kennedy, the district’s business administrator, said the district retired significant debt in recent years, allowing the board to minimize increases in the budget and the tax levy.
Board President Alan Hegedus said the budget is austere, including $1.3 million in cuts and the elimination of 12 positions.
”We think it is very responsible to the taxpayer,” Mr. Hegedus said.
The board, which met early and often during this budget season because of worsening economic conditions, completed their budget deliberations a week after Gov. Jon S. Corzine made his state budget proposal on March 10.
The board “played off everything” that Gov. Corzine announced last week, said Mr. Hegedus, “all the while protecting our strong program and academic achievement.”
State aid numbers released the same day as Gov. Corzine’s budget address show Princeton’s district will receive flat funding in the amount of $5.5 million in state aid.
The flat funding was actually a positive development, according to some school officials, who said they originally believed the district would see a reduced amount of state aid.

