New Jersey is taking another look at how public schools are funded, and Cherry Hill officials are pushing for changes. Since schools and property taxes are closely connected, South Jersey homeowners should understand what is being discussed.
Mention property taxes at almost any South Jersey gathering and you'll probably get a reaction.
Taxes are one of the first things buyers ask me about, and they are often part of the conversation when longtime homeowners begin thinking about whether they should stay in their house, downsize or move elsewhere.
That's why a major discussion underway in Trenton deserves homeowners' attention.
New Jersey's Department of Education has begun a statewide review of its school funding system. The state held a regional forum at Camden County College on October 5, with additional sessions scheduled as part of the review.
And Cherry Hill was very much part of the conversation.
Cherry Hill Public Schools Superintendent Dr. Kwame Morton testified that state aid to the district has fallen from approximately $36.4 million for fiscal year 2024 to $27.7 million for fiscal year 2027, a reduction of approximately $8.6 million. District representatives are asking the state to reconsider portions of the formula used to determine how much aid communities receive.
Among the broader issues raised at the South Jersey forum were New Jersey's reliance on property taxes, special education expenses, transportation costs, employee benefits and aging school facilities.
Here's where homeowners need to be careful.
This does not mean anyone can tell you today that your property taxes are going up or going down because the formula may change.
We don't know that.
A review is underway, and significant changes could take time.
But the discussion matters because public education and property taxation are closely connected in New Jersey.
When you're buying a house, your monthly housing cost isn't simply principal and interest on the mortgage.
Property taxes can dramatically change affordability.
Two similarly priced houses in neighboring municipalities can produce very different monthly payments because of differences in taxes.
That is why buyers sometimes start their search saying, “I can spend $450,000,” only to discover that the actual question is:
What monthly payment can I comfortably afford once taxes, insurance and the mortgage are combined?
Taxes also affect sellers.
A buyer comparing multiple communities isn't looking at your sale price in isolation. They may compare the entire cost of owning the property.
That doesn't mean buyers automatically avoid higher tax communities. Far from it.
Many buyers deliberately choose communities because they value the schools, municipal services, location, recreation or other benefits they believe they receive.
Real estate rarely comes down to one number.
The important thing is understanding how all the numbers fit together.
I'll be watching the school funding discussion closely because decisions made at the state level can eventually find their way into conversations happening at kitchen tables throughout South Jersey.
And that is part of my job as a Realtor.
I don't believe homeowners need another person shouting that property taxes are too high.
They need someone who can explain what is changing, what isn't changing, and what it might mean when they eventually decide to buy or sell.
That's a much more useful conversation.
Check out this article next
