Last week’s dramatic announcement from the Lakewood Student Transportation Authority (LSTA) that they will be raising the fee for non-mandated children to opt into the busing program has raised questions about why the reduction is happening now and what prompted the township to make the cut so soon before school started, when the state budget was approved in late June.
Asked for comment, Township officials tell The Lakewood Scoop that the subsidy reduction only came after the State Local Finance Board rejected Lakewood’s request to raise an additional $12.9 million in property tax revenue above the state’s 2% cap, which would have allowed the township to raise and spend additional property tax revenue.
TLS first reported on that decision earlier this month.
With that request rejected, officials say the township has been forced to make difficult reductions to its budget — and more cuts could be coming.
The Local Finance Board voted 4-3 against Lakewood’s request for $12,927,234.41 in cap relief after board members expressed concerns about the township’s repeated reliance on cap waivers and the long-term sustainability of its finances.
With the waiver now rejected, township officials say they are being forced to make additional reductions, including the approximately $2.75 million cut to the LSTA.
The latest development follows a broader reduction in state funding for Lakewood. The state’s fiscal 2027 spending plan provides $1 million in discretionary municipal aid to the township — a restoration from the governor’s original proposal, but a sharp decline from the $8 million and $7 million provided in the previous two state budgets.
Township officials and local lawmakers have argued that Lakewood’s rapid population growth has placed extraordinary demands on municipal services while state funding formulas have failed to keep pace.
The township is now facing the challenge of balancing those demands while remaining within the state’s tax cap.
At the Local Finance Board hearing, township Administrator Pat Donnelly outlined a series of steps Lakewood has already taken to reduce spending, including a hiring freeze, limiting replacement of retirees and restricting promotions to positions considered necessary to maintain staffing levels.
Donnelly also told the board that Lakewood has begun preparing a potential layoff plan and is examining ways to reduce costs and potentially scale back certain services.
“We recognize that there’s areas that we just need to financially find a way to kind of stuff as much as we can inside this envelope,” Donnelly said.
Township officials tell TLS that the LSTA reduction should therefore not necessarily be viewed as an isolated cut, and more cuts may be coming.
The township is continuing to examine its budget and municipal operations in an effort to close the gap created by the loss of anticipated revenue and state funding.
The financial pressure comes as Lakewood continues to experience significant population growth and increasing demands for police, public works, emergency medical services, road maintenance, snow removal and other municipal services.
Snow removal alone was cited as a major unexpected expense this year. Donnelly told the state board that Lakewood spent approximately $8 million following an unusually severe winter, compared with roughly $1 million to $2 million in a typical year.
The township also sought federal reimbursement for some of the storm-related expenses following the state of emergency declared by the governor, but those efforts were rejected by the Trump administration, which the state is appealing.
Local Finance Board members acknowledged the unusual pressures facing Lakewood but said the township could not continue indefinitely relying on large cap waivers.
For now, the township must operate within the revenue limits imposed by the state, and officials say that means difficult decisions about municipal spending — including the LSTA subsidy — are likely to continue.
The $2.75 million LSTA reduction is thus the latest visible consequence of the state’s decision not to grant Lakewood the additional $12.9 million in property tax authority it sought.
And according to township officials, it may not be the last.
Something doesn’t add up. The original article about the budget cut says that there are about 13,000 non-mandated students in Lakewood.
$2.75M ÷ 13k = $211.53
Read that again: $211.53. NOT $560.
Why is the LSTA charging parents an extra $350??
Because it’s a business. A business likes to make a profit. Plus, a goverbment check doesn’t bounce. your check may or may not come, or it might bounce.
The issue we have is not with the township. The issue is with the school board. It was nice of the township to step in to fill the gap in the past. Though it is not necessarily the right thing for the taxpayers, and therefore should be the first thing that gets cut.
The school board should prioritize non mandated bussing over some of the other non mandatory spending.
The boe is not allowed to give any funding for non mandated bussing. This is a rule set by the state.
Then it needs to be addressed at the state level politically.
Is this specific to Lakewood? Because state wide in general, the boe is allowed to use property tax money for non mandated bussing. Therefore it can still be made the to priority of property tax payments (non mandated expenses). Unless this is specific to Lakewood.
Yes, it’s specific to Lakewood. Lakewood has been reliant on state “loans” for years because we can’t cover our BOE budget, and that comes along with a state monitor who gets to veto all expenditures at his discretion.
Well we should refuse all non mandated expenditures until non mandated busses is taken care of. No busing no anything else either.
You can refuse what you want, but ultimately the state monitor controls all board of ed spending.
Township growth means more taxes?! Why isn’t there more money from all the new houses and taxes?
The town has given short and long term tax abatements and PILOT ‘s to the tune of $7M. That’s 7M in property taxes lost.. It’s probably one reason why the state is not contributing more.
Pilot programs help everyone in Lakewood. The taxes all go to the municipality and none to the board of ed so the town ends up with more money. If it goes to the board of ed it goes to the state to be distributed according to the amount of public school students in each town.
Our property taxes go to the municipality, BOE, and the county. None of it goes to the state. As I said, due to abatements and PILOT the town failed to collect 7M in property taxes.
Because of all the connected people getting tax abatements!
The folks moving to town/rapidly growing their families consume WAY more than they contribute.
The same amount of taxpayers (or less as the ones who can afford to move away from the disfunction do) paying for more taxtakers…
Supply and demand.
So you should all move out. make room for those that don’t kvetch and complain.
You are a fool!! I’m getting out of here after being a 70 year resident. My taxes have tripled with no added services, I’m glad to go along with my tax dollars. It’s a lose lose for the township.
Why am I a fool? I said move out. You said you’re moving out.
I don’t understand why the state isn’t giving Lakewood more funding
You don’t understand? At all?
Because the state is getting less funding from the federal government. The federal government lakewood voted 95% for.
has nothing to do with the federal governemnt. Everything to do with the Democrats and teachers union. BTW, it’s the federal governemnt job to fund state anbd local government. It’s the other way around. That’s where the SALT deduction comes from.
Because lakewood is mostly Jewish and parochial schooled. BJ is a Liberal Democrat controlled state, who’s politicians are supported by the teaching unions. The teaching unions despise all private education especially Jewish education. thus the politicians in trenton, have no interest in funding lakewood.
Oh, so either I pay more to get my kids to school? Or I pay more in taxes? Ontop of the insane amount of taxes I already pay?
Private education means private funding. If you want it to be fully publicly funded, pay 25% more in taxes.
First cut should be to the lifetime health insurance the committee voted for themselves.
…because we didnt vote for her.
*eye roll*
The Township subsidy that was cut is a drop in the bucket of the current bussing fiasco. Maybe it was just the straw that broke the camel’s back, but LSTA has been running a deficit for years because the leftover money from the aid in lieu for the mandated students was no longer enough to cover the cost of the non mandated students as bussing bids came in higher and higher each year. If anything, blame the bus companies. Or blame the LSTA for burying their/our heads in the sand until the last possible moment.
With not enough money for the annual budget. There’s alot more to come… Wait and see!
I’m glad the State rejected the astronomical property Tax increase proposed to help with the budget. It’s time to make smart financial decisions and not spend unnecessary money. And enough with all the Tax exemptions and abatement. This disaster could have and should have been prevented. And clearly the state feels the same way.
Governemnt doesn’t know how or care to control it’s spending.
I want the government to provide me things with my taxes but I also don’t want taxes and think they should be cut or removed. But if this stops the government from providing me with things I want then I’m gonna cry and be so mad and upset and think there is some kind of corrupt conspiracy against me. Anyway let’s keep cutting taxes. If this stops us from getting things we need we can always blame someone else. Maybe this is a problem for ICE to solve. Maybe. Somehow. (Sarcasm)
I said it before and will say it again. Why aren’t the roshes yeshiva encouraging the lakewood oilam to sign up for public school. The state will cave in very quickly and contribute to help us with bussing and tuition
No chance the state caves. Easier to absorb and expand the way they want at that point
The township claims that it budgets $1-2 million for snow removal, and this past winter was so severe that the budget was exceeded by millions. What happens to the $2 million when we don’t get any snow at all? We have had many years without any snow.. Shouldn’t that money be put away for a “snowy” day in the future? Or is that money spent on other items so that when extra money is needed, the township has to go hat in hand to beg for a bailout from Uncle Sam and complain when it isn’t forthcoming?
That’s the way governemnt works. that’s why there isn’t and hasn’t been in decades for sure, in any government an actual balanced budget. listen to every single proclamation of a budget, they always claim over 10 years we will back to zero deficit. It’s all a bunch of criminals and lies.
You know, I’m getting sick and tired of all these problems that Lakewood is having. The township officials (you know, the ones you keep voting for) keep saying they don’t have enough money. Well, perhaps this article will help you understand why the township has no money. Granted some of the properties belong to the state, county, or town, however—- https://www.taxexemptworld.com/organizations/lakewood_nj_08701.asp
You voted for this. I don’t know what to say other than, you voted for this. These cuts are a direct result of federal funding cuts, directly from the administration lakewood overwhelmingly voted for.
Wrong. learn a little about the constitution. the federal government is not supposed to fund local govenrments at all. it’s the other way around.
I have a great idea. Everyone is talking about having schools and mosdos open their books to the public. Let’s have the township start first. Open your books (which by the way is a legal requirement) to the voters and let us determine, line by line, what is reasonable…which by the way again, is called an independent audit and is best practice for any governing entity.
Then, at township meetings, instead of racing through formalities on zoom, take the time to explain each line item, and the benefits and problems with each. If a tax abatement is on the agenda, explain to the community why its in everyone’s best interest.
I think it would be a game changer!
How about the crimnal state? The criminal county? etc.