Taxed Enough Already Lawrence (TEAL) is a citizen group that has been organized to provide critical analysis of local government spending proposals affecting Lawrence Township taxpayers.
We have done an analysis (no-to-referendum.com) showing that the proposed $98.9 million school bond referendum could cost Lawrence taxpayers significantly more than the school board’s estimates suggest. The referendum, scheduled for March 11, would increase property taxes by up to $2.38 per $1,000 of assessed home value — nearly double the school board’s projected rate of $1.15.
Our analysis identified substantial financial risks that aren’t reflected in the Lawrence Township Public Schools’ proposal. For a home assessed at $650,000, this could mean an additional tax burden of up to $1,547 annually for the next 25 years, rather than the $757 annual increase projected by the school board.
Key findings from TEAL’s analysis include: The proposal relies heavily on uncertain state funding, with $737,755 in annual debt service aid at risk; the district assumes $4 million in annual state funding for preschool operations, which could be reduced or eliminated by future state administrations; no budget allocation for maintenance and repairs, which typically cost 2.5% of capital investment annually ($2.45 million per year); and the expansion would add 400 new preschool students at a time when U.S. Census data shows Lawrence’s population has declined by 4% since 2020.
The referendum would fund a major realignment of elementary and middle schools, including a significant expansion of the district’s preschool program. While the school board projects a 7% increase in school taxes, TEAL’s analysis suggests the total impact could reach 14% when accounting for maintenance costs and potential loss of state funding. For a $650,000 home, this represents a potential cost of up to $38,675 over the 25-year bond term.
These are significant numbers that every Lawrence homeowner needs to consider carefully. The financial exposure from uncertain state funding for both capital costs and preschool operations presents a substantial risk to taxpayers. TEAL’s analysis also indicates that capital spending in high-performing districts like Lawrence historically shows no positive impact on property values, contrary to claims made by bond supporters.
We’ll also note recent announcements from the Murphy administration about decreases in education funding due to state budget cutbacks. In particular this puts the aid for the construction project at risk and the approximately $4 million a year the Lawrence school district expects to get from the state to pay for the preschool expansion that was the impetus for the need to expand the school’s capacity. In short they’’ll be building capacity and then not have the money to operate it.
We’re suggesting that rather than embark on a spending spree, the district retrench and figure out how it will maintain existing programs and renovate existing structures within the/ current budget. They can do this because bonds from the previous high shcool building will be paid off soon and free up money to renovate the most critical things.
TEAL recommends voters carefully consider the full financial implications before the March 11 vote.
Dan Dodson, Hilary Jersey, Ken Keirnan and Rob Pluta
The above are members TEAL.
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