Balance of payments
compared to enrollment
remains in contention
action on h.s. tax issue
Balance of payments
compared to enrollment
remains in contention
By linda denicola
Staff Writer
FREEHOLD TOWNSHIP — In an attempt to heighten the pressure on legislators, the Township Committee has approved a resolution supporting a change in the method of tax apportionment for municipalities in the Freehold Regional High School District.
According to the resolution, the committee believes that the present method of funding for the FRHSD places an inordinate and unfair proportion of the funding on Freehold Township taxpayers. The township accounts for about 14.9 percent of the district’s enrollment (about 1,565 of 10,500 students), yet its property owners pay about 19.4 percent of the property taxes the district collects.
Mayor Eugene Golub said during a recent interview that the formula used to determine how much each town contributes in taxes to the district is inequitable.
Committeeman David Salkin said township officials will continue to put pressure on state legislature to find better funding methods for education.
The resolution which is being sent to state legislators requests that the FRHSD and all eight member municipalities establish a more fair and just system of cost apportionment, using the number of students in each sending municipality relative to the funding of the district pursuant to state statutes.
According to the Assembly Task Force on School District Regionalization report, state law provides for the method used to determine the apportionment of regional school district costs among the constituent municipalities. Costs may be apportioned on the basis of the portion of each municipality’s equalized valuation allocated to the regional district; the proportional number of pupils enrolled from each municipality on Oct. 15 of the pre-budget year; or any combination of apportionment based upon equalized valuations and pupil enrollments.
The report’s executive summary of recommendations states that the equalized valuation method is a disincentive to school district regionalization.
"A new and fairer formula should be devised to provide for more equity among constituent municipalities," it states.
The report continues: "…there should be a realistic mechanism which compels equitable adjustments in the distribution of costs among constituent municipalities for the small number of existing regionalized districts which currently evidence an extreme disproportionate distribution of costs."
The report also indicates that an amendment to the original bill permits modifications based on the occurrence of one of several events. Freehold Township fits the occurrence criteria in at least one instance — the FRHSD was established more than 10 years ago. State Assemblywoman Clare Farragher (R-Monmouth) said the present funding formula is based on a community’s wealth. A comparison of the tax obligation to the district makes it apparent that it is not based on enrollment.
According to figures provided by a committee in Marlboro that is studying issues related to the FRHSD:
• Colts Necks pays 9.95 percent of the district’s tax bill and enrolls 4.7 percent of the students.
• Englishtown pays 0.56 percent of the district’s tax bill and enrolls 0.839 percent of the students.
• Farmingdale pays 0.42 percent of the district’s tax bill and enrolls of 0.546 percent of the students.
• Freehold Borough pays 3.66 percent of the district’s tax bill and enrolls 5.06 percent of the students.
• Freehold Township pays 19.44 percent of the district’s tax bill and enrolls 14.9 percent of the students.
• Howell pays 20.80 percent of the district’s tax bill and enrolls 29.54 percent of the students.
• Manalapan pays 20.23 percent of the district’s tax bill and enrolls 22.11 percent of the students.
• Marlboro pays 24.94 percent of the district’s tax bill and enrolls 22.30 percent of the students.
Farragher said she understands the problem, but doesn’t know how to solve it fairly. She said when she gets a copy of the Freehold Township resolution she will send it up to the Office of Legislative Services.
"They write the legislation for us. They review existing laws and court decisions and they will send me back an opinion as to an approach that will alleviate the problem," the assemblywoman said.
She added that it is hard to change the funding formula because it’s a statewide formula.
"If we start tinkering with it and change the way it’s done in a certain area the overall formula would be affected," she said.
Farragher, who lived in Freehold Township for more than 22 years and served as a township committeewoman and mayor, said costs have shifted over time.
"When I was mayor it was worse. We paid a more disproportionate amount, almost 25 percent of the bills. A few years back we actually got a referendum on the ballot to change the apportionment, but because it’s a regional district and because Howell benefits from the system they voted it down."
Farragher said the issue is something that she is sympathetic to.
"There are towns in the regional district that are paying proportionately more than others, but I don’t think there is going to be agreement between the municipalities in the district," she said.