BOE Approves 2012-13 Budget with 1.5% Tax Levy Increase

The Matawan Aberdeen Board of Education approved a $63,282,867 budget for the 2012-13 academic year at their meeting Monday night.

According to a budget presentation given by Business Administrator James Strimple, the total tax levy accounts for 75.8% of the budget. State aid accounts for 19.5% of it, fund balance (or surplus) accounts for 1.7%, and grants account for 1.6%.

The total tax level is split into two pieces. The first piece is the operating budget, or the amount that is used toward costs such as programs, initiatives, technology or capital projects. The second piece is debt service. Strimple explained that debt service is similar to making mortgage payments.

The total tax levy for the 2012-13 year is $47,966,733, with $45,523,260 going toward the operating budget and $2,443,473 going toward debt service.

Since the district is regional and the costs are shared by both Matawan and Aberdeen, the state uses a complex formula called equalized valuation to determine how much of the tax levy each municipality is responsible for.

Equalized valuation takes into account the wealth of the community, mostly in the form of property taxes. As the value of properties decrease, Strimple explained, there is less wealth to spread the burden of the tax levy on which causes the taxes on the individual to increase. 

Between the 2011-12 academic year and the 2012-13 academic year, the assessed value of both Matawan and Aberdeen, as determined by the state, has decreased. Matawan's assessed value decreased from 1,052,188,800 to 1,044,278,871; Aberdeen's assessed value decreased from 2,089,309,000 to 2,071,781,848.

The percent of the tax levy each municipality has decreased for Matawan and increased for Aberdeen from the 2011-12 academic year to the 2012-13 academic year. In 2011-12, Matawan was responsible for 32.35% of the total tax levy and will now be responsible for 31.781%, or $15,310,555.03. In 2011-12, Aberdeen was responsible for 67.649% of the total tax levy and will now be responsible for 68.218%, or $32,722,102.48.

This results in Matawan residents paying $1.466 per $100 of their house's assessed value. For the average Matawan home, which is estimated at $336,582, school taxese would increase by $33.58 a year (or $2.80 per month).

Aberdeen residents will see a school tax rate of $1.562 per $100 of their house's assessed value. For the average Aberdeen home, which is estimated at $282,139, school taxes would increase by $153.47 per year (or $12.79 per month).

The budget is also funded through state aid, fund balance and grants. According to Strimple, state aid increased by $869,215 to $12,389,689. A portion of the fund balance, or surplus, will be used toward the operating budget and toward debt service. A total of $1,686,921 of surplus will be used, with $1,674,734 going toward the operating budget and $12,187 going toward the debt service.

Editor's note: Check back soon for a story about what all of your hard earned tax dollars are paying for.