JOINT STATEMENT
Borough of Collingswood and Collingswood Public School District Form Collaborative Path Forward to Address Funding Crisis
March 10, 2025
The Collingswood Board of Education and Borough Commissioners have agreed on a proposal for a collaborative path forward to address the District's request for additional funding to avoid a budget crisis in 2025-2026. The plan, which was refined over the weekend, will eliminate the need for drastic cuts to programs and staff.
The Board acknowledges the Borough’s engagement and creative solutions, and presents a comprehensive response aimed at achieving a sustainable financial future for the District while preserving educational excellence for our students.
Currently, the District faces a $8.7 million state funding gap for the 2025-2026 school year, resulting in a $3.6 million budget deficit if current staffing and programs are maintained.
The plan summarized below addresses the immediate and most urgent needs and sustainable school funding moving forward:
Borough Contribution to 2025-2026 Budget: The District will accept the $754,642 in additional PILOT and surplus funds offered by the Borough which includes: $222,500 accounting adjustment for the Parkview PILOT; a $272,500 increase in PILOT payment; $135,967 in surplus funds; and $123,675 allocation of previously earmarked recreation funds for Chromebooks will be prioritized for that purpose; the District retains the flexibility to reallocate funds to maintain essential staffing if necessary. The above measures will result in an average $20 per year additional tax increase.
Joint Budget Review and Deficit Coverage: The District will provide budget documents to the Borough and conduct a collaborative review with the Borough. Following the review and consensus with the District, the Borough will commit to providing the necessary revenue to fully close the District’s remaining budget deficit by borrowing the funds. The Borough will repay that debt beginning in 2026 with the PILOT revenue referenced in Item #1. This short-term financing results in filling the 2025-26 budget gap with no additional impact on taxpayers.
Utilization of Potential State Tax Cap Flexibility: If the Governor's proposal for additional tax cap flexibility is enacted, the District will utilize this to reduce the budget deficit, thereby lowering the Borough’s required contribution.
Shared Recreational Facility Development: The Borough will proceed with bonding approximately $15 million for recreational facility development at the middle/high school complex and Knight Park. To maximize public benefit, the Borough and School District will establish a shared service agreement to ensure joint use of these facilities, supporting student activities and broader community programming. This investment is strategically timed, as the Borough can provide this funding without increasing taxes due to retiring municipal debt.
Joint Advisory Committee for Long-Term Facilities and Equity Planning: A joint advisory committee will be formed to develop a plan addressing the 2024 Bond Referendum goals: facilities capital needs and equitable learning structures. The committee will explore the use of county improvement authority bonding with municipal credit guarantees to modernize facilities and ensure equity across schools.
Future Referendum for Sustainable Funding: With the Borough’s support, the District will propose a referendum in September 2025 to establish a sustainable funding mechanism for future budget years, thereby eliminating the need for ongoing Borough contributions after the 2025-2026 budget year.
The above steps address the most urgent and priority needs and are our immediate focus. The Borough’s proposals for shared services opportunities such as office space and the future use of educational facilities remain important topics but require ongoing discussion and consensus between the Board and the Borough.
Additionally, the Board and the Borough will actively and diligently pursue efforts and a plan to enroll seniors in State property tax rebate and freeze programs, ensuring they receive the financial relief they are entitled to.
The Board is appreciative of the Borough’s collaborative spirit and commitment to finding solutions. This comprehensive plan ensures the 2025-2026 budget deficit is addressed, avoiding drastic cuts and allowing for the funding of the Board’s contract offer to the Collingswood Education Association (CEA). This plan also acknowledges the necessity for long-term revenue solutions to prevent future cuts to personnel, programs and services. The Board looks forward to continued collaboration with the Borough to implement these crucial initiatives and secure a stable and thriving educational environment for Collingswood’s students.
This plan addresses community needs while aligning with our shared goals. It prioritizes tax-neutral, and cost-saving measures, explores future collaboration opportunities, ensures ongoing senior citizen tax relief, supports capital improvements and equity, enhances school fields and community parks, and reinforces our commitment to valued teachers and staff.
The community is invited to attend a special meeting of the Board of Education on Monday, March 10, 2025 at 6:30 p.m. at Collingswood High School to learn more. We will continue to update the public to provide updates and transparency around this partnership.