Collingswood Public Schools

Dear Collingswood Community,

We are writing with an important update about the Collingswood Public Schools budget. Last week, the NJ Department of Education (NJDOE) informed the Board and District of its tax levy incentive aid program, which presents a one-time opportunity to exceed the 2% tax cap law and raise our local tax levy. Because this is such a significant development, we want to provide you with as much information as we can.

What financial deficit does Collingswood Public Schools face for the 2025-2026 school year?

The district faces a $3.6 million budget deficit. We have detailed the structural reasons for this deficit previously, and you can read more about them here. To pass a balanced budget, the District would need additional revenue or be required to make drastic and unprecedented cuts to staffing and programming for the 2025-26 school year.

How would this new tax levy incentive aid program help us fill this gap?

This program provides a one-time exception to the 2% tax cap law, allowing school districts like Collingswood that are below their “adequacy budget” and their “local fair share” to raise their local tax levy and permanently reduce current budget deficits and funding shortfalls without a referendum. The NJDOE would also provide districts with additional funding for the 2025-26 school year worth 5% of the taxes raised through this exception. Applications to participate in this program are due from school districts to the NJDOE on April 14th.

What is the financial impact of this tax levy incentive aid program on the community?

The Board and District could raise the school tax levy up to an additional $6.4 million. While this would allow us to avoid cuts and support the thorough and efficient education of all of our students now and in the future, the Board understands that such an increase has significant implications for Collingswood residents. The Board presented several potential funding scenarios that contain different levels of tax impact at its Public Forum on Tuesday, April 8.

How does this tax levy incentive aid program affect the partnership between the Board, District, and Borough of Collingswood?

The District recently partnered with the Borough of Collingswood, which agreed to provide temporary funding to fill the budget shortfall for one year (see our March 10th Joint Statement). In that statement (see item #3, “Utilization of Potential State Tax Cap Flexibility”), the District agreed to utilize any tax cap flexibility from the state to offset the Borough’s need to provide temporary funding. The District and Board will now be able to utilize the NJDOE’s program to raise the local tax levy to close the budget deficit, thus eliminating the need for temporary funding from the Borough. We are extremely grateful for the Borough’s willingness to collaborate, and we look forward to continued partnership, particularly around opportunities that benefit both our schools and the broader community.

How can I learn more about the tax levy incentive aid program and provide the Board with feedback?

We have scheduled the following public meetings in addition to the Board’s April meeting. All meetings will take place at 6:30 pm in the CHS Cafeteria, with the entrance located on Cambridge Ave between Eldridge Ave and Collings Ave.

 * This meeting will take the place of the April 10th Board Roundtable

Though this is uncharted territory, we are excited about the opportunity to bring financial stability to the District and our schools after several years of painful cuts to staffing and programming. Thank you to all the community members who have advocated for this opportunity. We will provide additional information as it becomes available.

Sincerely,

Roger Chu and Kate Seltzer

President and Vice President, Collingswood Board of Education