STATE TAX FORMULA FOR FUNDING THE WMRHSD

The formula for funding the WMRHSD and the tax sharing among its member municipalities is decreed by New Jersey Education Law. It is not determined by the WMRHSD Board of Education. The State's formula is based on the philosophy that each sending district funds their educational capital and operating expenses based on the property wealth of its member municipalities. The State tax formula applied to the WMRHSD is based on the combined equalized property values and student enrollment in each WMRHSD member municipality.

How The State Tax Formula Is Calculated

The tax formula is based on three factors:

  1. The equalized value of taxable property within each municipality in the WMRHSD.
  2. The number of elementary school students in each municipality.
  3. The number of high school students in each municipality.

Using the above three factors, the State's funding formula follows what amounts to a six-step process for calculating taxes:

  1. Equalized property values for each municipality are calculated.
  2. Elementary school enrollments (K-8) for each municipality is established.
  3. High school enrollment (9-12) for each municipality is established.
  4. The total student enrollment figures for elementary and high school are used to determine the percentage of elementary and high schools students in each municipality.
  5. The elementary and high school enrollments in each municipality are then assigned that percentage as a share of the equalized property valuations.
  6. Each municipality's share of the high school equalized property value is also its share of the regional tax requirement.

Since the demographics in each municipality constantly changes (e.g., student enrollment and property value) the various factors in the State formula, and consequently a municipality's share of the district's funding, also changes. For example, as property in a municipality is reassessed and property values increase, it is likely that the tax rate per $100,000 of assessed value in that municipality will decrease.

Click here to see how the State formula applies to each WMRHSD municipality over the past 3 years.