At the February 19 Board of Education meeting, the district’s first budget presentation of the season wasn’t about cuts.
It was about math.
And more importantly, it was about why East Brunswick often cannot predict its own state aid — even weeks before it must adopt a tentative budget.
Here’s what residents need to understand.
1. The District Is Required to Build a Budget Before It Knows Its State Aid
The Governor’s budget address determines state aid numbers.
State aid is released 48 hours after that address.
As of the February 19 meeting, the Governor’s address had not yet happened. It could be delayed into March.
East Brunswick is scheduled to adopt its tentative budget on March 19.
That means the district may be legally required to present a budget before it fully knows how much state aid it will receive.
That is not a local decision. That is how the state calendar works.
2. State Aid Is Driven by a Formula — But Not a Predictable One
State aid is calculated using:
• Enrollment numbers
• Special education counts
• Low-income student counts
• Equalized property valuation
• Income data
• Statewide funding limits
• “Factors” that are not publicly explained
Those last factors matter.
Small percentage changes in these formula multipliers can translate into tens of millions of dollars in expected “local fair share” contributions.
Even if East Brunswick’s enrollment is relatively stable, the formula inputs shift every year.
And when property values and income levels rise — as they have — the state’s expectation of what East Brunswick should be able to fund locally also rises.
That often means less state aid.
3. The Local Fair Share Is Increasing Faster Than the 2% Tax Cap
The state calculates something called “Local Fair Share.”
This is the amount the state believes the town can afford to contribute to its schools.
That number has accelerated significantly in recent years, largely due to:
• Rising equalized property values
• Rising income data
However, the district is capped at raising its tax levy by 2% annually, unless it qualifies for limited adjustments.
So here is the tension:
The state expects East Brunswick to fund more locally.
But the district cannot legally increase taxes beyond 2% without special conditions.
Meanwhile, inflation, health care costs, utilities, and transportation costs have all risen well beyond 2%.
That mismatch is structural.
4. Special Education Costs Are Rising — And They Are Mandated
Another major driver discussed was out-of-district special education placements.
Since October alone, placements increased by 11 students.
Out-of-district tuition often averages tens of thousands of dollars per student. Transportation for those placements can also cost tens of thousands per route.
These services are not optional.
They are federally and state mandated under special education law.
If a student requires a placement, the district must provide it.
That creates cost volatility that cannot be predicted with precision.
5. “Why Don’t They Just Raise More Revenue?”
This question comes up often.
The district already uses:
• Activity and club fees
• Tuition for certain programs
• Enterprise transfers
• Interest income
• Available grant opportunities
Some ideas, like bus advertising, were explored. While such programs once generated meaningful revenue in some districts, current market returns are minimal.
Grant funding is often tied to socioeconomic thresholds. As a relatively higher-income district, East Brunswick does not qualify for many of the grants available to other municipalities.
Unlike a private household, a school district cannot simply “get a second job.”
Public school revenue sources are heavily regulated.
6. Health Insurance Is a Double-Pressure Point
The district is self-insured.
Recent law changes reduced employee contribution levels while health care costs continue to rise.
That means:
• Costs are increasing
• Contributions are decreasing
The savings originally projected under state reform laws have not materialized in a way that reduces the district’s overall burden.
The Bigger Picture
None of this was presented as alarmist.
It was presented as foundational.
The key takeaway is this:
East Brunswick’s budget challenges are not the result of one single decision or one single year.
They are the result of:
• A 2% tax levy cap
• Rising state expectations of local contribution
• Inflation beyond 2%
• Volatile state aid formulas
• Mandated special education costs
This is structural math.
The tentative budget in March is the starting point, not the final version.
Understanding the mechanics behind the numbers helps residents evaluate future discussions more clearly — and with less assumption.
Eyes on EB will continue to follow the process as state aid figures are released and the budget evolves.
Because context matters.
