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Shiloh, Hopewell districts merged
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TRENTON - The tiny Shiloh school district officially no longer exists, but its school property taxes will still increase.
New Jersey Education Commissioner Lucille Davy late Wednesday afternoon announced the formal elimination of half of the 26 school districts in the state that have school boards and budgets, but no operating schools. Those so-called non-operating districts instead pay tuition to send all of their children to school in another town. Shiloh children attend school in Hopewell Township.
The announcement is the first in a statewide effort to consolidate school districts and save money.
"This is an important step forward in Governor Corzine's efforts to share services and make government more efficient," Davy said.
So far, the cost savings reported are modest. The elimination of the Shiloh district is estimated to save $64,500.
The long-term property tax impact on the eliminated districts varies, and each has its own elimination plan. Davy said the mergers were effective July 1 to coincide with the start of the school and state fiscal years.
She said the remaining 13 non-operating districts, which include Corbin City and Longport in Atlantic County, Cape May Point and West Wildwood in Cape May County, and Newfield in Gloucester County, have additional issues that must still be addressed.
While district officials knew the mergers were coming, they were caught off guard by the rapid process that led to decisions on which they had no input or notice.
"It's no surprise that they are doing it, but the process was wrong," said Ken Freitag, president of the Hopewell Township school board, who was not aware that the plans had been released Wednesday, and had just learned about the bill that authorized them, even though his local legislators sponsored the bill. "They didn't tell a soul until it was done."
On Tuesday Gov. Jon S. Corzine signed into a law a bill that outlined how the mergers would be accomplished. Under the law the merged districts will have representation on the new school board. The executive county superintendent in each county developed the elimination plans, which were to be done in a way that was the least fiscally and educationally disruptive.
The method used to develop the proposed tax levy for the merged district was calculated in three ways, based on 100 percent enrollment, 100 percent equalized property valuation and a combination of both. The final method chosen was designed to most closely match the school tax levy already set for 2009-10.
Tavistock, which has just one student, will pay based on 100 percent enrollment. Branchville and Pemberton's tax levy will be based 100 percent on property valuation. Mantaloking will be based 99.5 percent on enrollment and .5 percent on equalized valuation. Audubon Park will be based on 2.4 percent enrollment and 97.6 percent equalized property valuation.
Shiloh's levy will be based on 100 percent enrollment, but according to the report filed by the DOE, property taxes will rise steadily over the next five years. Shiloh's school property tax levy for 2009-10 is $138,126. Based on the three methods of calculating the new levy, the least costly was the 100 percent enrollment method, which would still raise the levy to $208,897, a sizeable increase in the tiny town of about 660 people and 100 school-age children. Under the plan, the increase would be phased in over five years.
Hopewell Township's tax levy over that period would proportionally drop from the current $2,769,501 to $2,698,730. All debt held by Hopewell Township would remain that district's responsibility alone, though any future debt would be shared.
Freitag said he is not totally surprised that the Shiloh tax levy will increase, but he sympathized with the impact on its residents.
"I do feel badly," he said. "It has never been Hopewell's intention to charge more than necessary, but we no longer control that."
Shiloh school board President Beth Smigelski could not be reached for comment Wednesday.
The complete plans for all 13 eliminated districts are online at:
E-mail Diane D'Amico:
Posted in Cumberland on Thursday, July 2, 2009 3:10 am
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