Howell schools are expected to introduce $108M budget
Tax impact unclear because of revaluation
BY MARK ROSMAN
Staff Writer

The K-8 Howell Board of Education was expected to introduce a $108,583,670 budget for the 2007-08 school year at a special meeting to be held this week.

The budget is tentative and subject to change before it is formally adopted by the board after a public hearing to be held March 28. Residents will have an opportunity to comment on the budget during the public hearing.

The tentative budget has been sent to the Monmouth County superintendent of schools for review. The county superintendent is the local representative of the state Department of Education.

The tentative budget was posted on

the school district's Web site at

www.howell.k12.nj.us this week.

According to information provided by the school district, the proposed general fund will be $96,209,319 and the proposed general fund tax levy will be $61,442,847. The general fund tax levy is the amount to be voted on by residents in the April 17 school election.

The district's total debt service (payments on outstanding loans) for 2007-08 will be $9,636,877. The debt service tax levy will be $7,726,098. Residents do not vote on the debt service tax levy.

All together, Howell property owners will pay $69,168,945 in taxes to support the operation of the school district in the coming year if the budget is approved as presented.

Howell's total state aid for 2007-08 will be $33,564,545, which is up from total state aid of $32,695,171 in 2006-07.

However, a district spokesperson said board members believe the state aid figure is deceiving because the state also reduced the district's ability to raise funds from last year's tax levy amount by $717,953, resulting in an effective increase of less than the published amount of state aid for 2007-08.

Because Howell has undergone a complete revaluation of all properties in the township this year, the budget presented by the board is expected to call for a decrease in the K-8 school tax rate from $2.12 per $100 of assessed valuation to $1.00 per $100 of assessed valuation, according to information provided by the school district.

However, the decrease in the tax rate does not necessarily mean that a property owner's actual taxes will be decreasing.

In one example, the owner of a home that carried an assessment of $150,000 in 2006 paid about $3,180 in K-8 school taxes for the 2006-07 school year. If that same person's home has now been reassessed at $350,000, that resident will pay $3,500 in K-8 school taxes in 2007-08.

The district spokesperson said school administrators have been informed by municipal officials that the tentative new average assessment in Howell is $350,000.

No programs have been removed from the 2007-08 budget that were in the 2006-07 budget, according to administrators.

At this time there is no second ballot question proposed for the school election and it does not appear there will be, the spokesperson said.

On April 18, 2006, voters approved the board's budget for the 2006-07 school year. The Election Day result marked the first time in seven years that Howell voters approved a budget and the spending plan did not have to go to the Township Council for review and spending reductions. The 2006-07 budget raised the K-8 school tax rate from $1.99 to $2.12 per $100 of assessed valuation.

The Howell school district operates 10 elementary schools and three middle schools.

The K-8 school tax is one portion of a property owner's overall tax bill. The tax bill also includes municipal taxes, Freehold Regional High School District taxes, Monmouth County taxes and several other assessments.