Princeton property owners will see a three-cent increase in the school district property tax rate, based on the district’s $108.5 million operating budget for the 2024-25 school year.
The budget, which is $2.3 million more than the 2023-24 budget of $106.2 million, was approved in April by a 9-1 vote. School board member Adam Bierman cast the lone “no” vote.
In casting his “no” vote, Bierman said his vote reflected a philosophical disagreement on the budget. He said he could not parse his vote, but if he could, it would have been 40% for the budget and 60% against it.
Bierman said he was afraid that rising costs would cut into the operating budget, causing deficits and potentially cutting teachers and staff. Rising property taxes are driving out people – those on fixed incomes and poor people who are often minorities – affecting the diversity that the district wants, he said.
“At the same time, if this is where we want to go, this is the right thing to do, then I can accept that,” Bierman said.
The school district property tax rate will increase from $1.23 per $100 of assessed value to $1.26. The owner of a home assessed at the town average of $844,787 would pay $10,644 in school district property taxes.
A Princeton property owner’s tax bill includes the school district tax, the municipal property, library and open space taxes; and Mercer County property and open space taxes.
The school district property tax accounts for 49% of a Princeton property owner’s tax bill. Mercer County’s share is 29% and the municipal property tax is 21% of the total tax bill.
Business Administrator Matthew Bouldin said the reasons for the increase in the budget range from meeting students’ needs post-pandemic, higher energy costs and the scarcity of teachers and the need to pay more to attract and keep them.
Salaries and benefits have grown by an average of 4% since the 2021-22 school year, Bouldin said.
Transportation costs will increase from $3 million under the current 2023-24 budget to $3.2 million in the new budget. Transportation costs have increased by 69% over the past three years, he said.
There are more students who need extra help and extra services as a result of the COVID-19 pandemic shutdown, officials said. The district is trying to offer more services, which means in increase in student services from $4.8 million to $5.1 million.
Bouldin said Princeton Charter School expenses have increased by 4.5%. The budget earmarks $8.1 million to be paid in tuition to the charter school, compared to $7.5 million in the current budget.
On the revenue side, property taxes account for 81% of the school district’s revenue. The amount to be raised by property taxes for the operating budget will go up from $86.1 million to $87.9 million.
There are other sources of revenue, including $2.3 million from Princeton University.
The school district will receive $5.8 million in state aid, as compared to $5.3 million it received last year. The district also will apply $3.5 million from its fund balance, or surplus account, as a source of revenue.
Also, the budget includes $5.3 million in tuition from the Cranbury School District, which sends its high school students to Princeton High School. The Cranbury School District does not have its own high school.
