Q&A: What Happens When School Budgets Fail

school-district-electionsjpg-8293361c17276fd8_largeWhat happens if the budget failed? School districts have two days after election results are certified to deliver defeated budgets to their local governing body. The governing body can trim the budget and recommend reductions in expenditures, or leave it as is. The school board is not obligated to follow the specific recommendations for cuts; it only must comply with the dollar amount. If a school board does not agree with a town’s cuts to the defeated budget, it can apply to the state education commissioner for restoration of the funds. If voters reject a second ballot question, there is no appeal.

What happens if a regional school district budget failed?
The regional board of education and administration will sit down with the mayor or a representative from all municipalities in the district. For example, North Hunterdon Regional High School District consists of 12 towns, so mayors from each of the towns will make the decision to decrease the tax levy by a certain dollar figure, or they can choose to leave the budget as is.

If layoffs and program cuts are announced and the budget passed can it still change?
Yes. If state aid increases, districts may use that money to restore staff and programs. Also, if teacher unions agree to renegotiate their contracts, the money saved can be used to restore programs.  

How much will my taxes increase this year?
Generally, the school part of a local property tax levy is not permitted to exceed 4 percent, although the law allows exceptions for specific reasons, such as loss of state aid or increases in health insurance premiums. The commissioner of education, however, has said the county superintendents will discourage school districts from using these exceptions. Star Ledger

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