Find out which districts will be required to raise property taxes under a new state plan.
New Jersey is about to require tax hikes in as many as 30 school districts as part of an under-the-radar maneuver so rare that school officials themselves are still trying to figure out who is affected.
The state's new school funding plan adds $400 million in aid to schools and, in theory, will provide tax relief for some homeowners once Gov. Phil Murphy signs off on it. The plan is meant to even out aid, shifting money from districts considered overfunded to those considered underfunded.
But the flip slide is that some districts are about to get hit next year with a virtually unprecedented order: Hike your taxes by 2 percent.
"I've been in this business 50 years," said John Donahue, executive director of the New Jersey Association of School Business Officials. "I have never heard that before, no."
Many districts are already raising taxes by 2 percent a year, so the state's order could have little impact in some towns, aside from giving local boards of education cover to approve the hikes. It's also not known exactly how many districts will fall under the mandate because it's based on figures from the state's school funding formula that change every year.
What's clear is forced increases will be imminent in Jersey City, Toms River and Brick and could also hit about two dozen smaller districts over the next six years, according to a list compiled by Senate President Stephen Sweeney's office.
The tax increases apply to districts that are both seeing a reduction in state aid and also not spending as much as the state's school funding formula says they should.
Those districts also haven't been taxing as much as they need to, according to the state's formula.
"You're not going to use the state as a piggybank so that we pay everything and you don't have to," Sweeney, D-Gloucester, said when announcing the plan. "Our money is leaving."
State lawmakers passed the plan last month but did not release the full list of schools that would be affected. Some districts contacted by NJ Advance Media were still unsure whether the mandate would affect them.
But in Toms River, one of the districts hit hardest by the loss of state funding, officials are speaking out and calling the forced tax increase unjust.
The district argues that its ability to fund its schools through local tax revenue took a major hit after Hurricane Sandy, but the lost ratables aren't accurately captured in the funding formula.
Toms River will lose more than $60 million in cumulative aid over the next seven years and would need to raise taxes by 2 percent for almost a decade to spend as much as the state says it should, said William Doering, the district business administrator.
"If the formula that determines that we are overfunded is materially flawed, how in good conscience can it be relied upon to take our aid, especially when they know it will cause unjust increases in taxes and cuts in programs and staff that will hurt children?" Doering said.
Statewide, the impact of the mandatory tax increases will vary.
In some cases, districts may only need to raise taxes for one year to hit their spending target. In other instances, districts might not be forced to raise taxes until two or three years from now, when a significant portion of their state aid has been phased out, according to Sweeney's office.
Whether districts like it or not, the forced tax increases are good for students, said David Sciarra, executive director of the Education Law Center.
Any new money collected through tax hikes will help prevent cuts to staff or academic programs that would loom after a reduction in state aid, he said.
"You've got to do something to make sure that the resources in the school don't get cut," Sciarra said.
Sciarra also cautioned that districts aren't necessarily to blame for not taxing enough.
In 2009, the state set targets for how much every district should be raising in local tax revenue, leaving some districts with a huge gap between their goal and their actual tax revenue, Sciarra said.
When lawmakers later implemented a 2 percent limit on school tax increases, it became impossible for some districts to reach their target for local revenue, he said.
Toms River, for example, is already regularly raising its school taxes to the limit.
"They're kind of stuck," Sciarra said.
Here is the list of districts most likely to be hit with forced tax hikes in the 2019-20 school year, according to Sweeney's office.
Belmar School District
Bradley Beach School District
Brick Township Public Schools
Cape May City School District
Clearview Regional High School District
Collingswood Public Schools
Commercial Township School District
Deal School District
Elsinboro Township School District
Englewood Public School District
Haddon Heights School District
Hopewell Township School District (Cumberland County)
Jersey City Public Schools
Lakehurst School District
Lakewood Public School District
Lawrence Township School District (Cumberland County)
Little Egg Harbor School District
Lower Township School District
Old Bridge Township Public Schools
Oldmans Township School District
Ridgefield Public Schools
Seaside Park School District
Toms River Regional School District
Weehawken School District
Adam Clark may be reached at adam_clark@njadvancemedia.com. Follow him on Twitter @realAdamClark. Find NJ.com on Facebook