The New Jersey Business and Industry Association’s Chief Government Affairs Officer Christopher Emigholz discussed on March 20 the potential for school district consolidation as a way to reduce New Jersey’s high property tax burden during an appearance on NJ101.5’s “Jersey Thing” broadcast with Eric Scott.
Property taxes in New Jersey are among the highest in the nation, with public school spending being a major contributing factor. The NJBIA is supporting legislation, S-2646, sponsored by Senator Vin Gopal, which would require county superintendents to develop plans for consolidating school districts with fewer than 500 students into regional districts. These plans would be reviewed by the state Commissioner of Education for approval.
Emigholz said that businesses pay nearly half of all property taxes collected by local governments but do not benefit from residential property tax rebate programs available to homeowners and tenants. “We’re paying the full boat with property taxes … and so we are very, very invested in structural reforms to improve our property tax system,” Emigholz said. “We support investing in our schools, but let’s make sure that’s getting to kids in the classroom, helping them get ready for college and career, not necessarily supporting schools that are inefficient and need to find some savings.”
He explained that consolidation could also include regionalizing services such as transportation, purchasing, and administration. Emigholz emphasized that improving efficiency does not mean sacrificing educational quality: “We’re not going to hurt that quality by consolidating schools,” he said. He cited issues where students from small K-8 districts may struggle when transitioning to regional high schools due to differences in curriculum.
Emigholz outlined three main ways consolidation can save money: economies of scale, increased efficiencies through combined services or vendor contracts, and unified teachers’ contracts across regions rather than separate negotiations in each district. “If there was one contract for the entire region, taxpayers are saving money, teachers are still getting a good contract, and there’s still negotiation,” he said.
The New Jersey Business and Industry Association serves as the nation’s largest statewide employer association representing employers across various sectors according to its official website. It advances competitive excellence and financial success for its members while delivering essential information and services according to its official website. Michele Siekerka is president and chief executive officer of the association according to its official website. The organization serves private-sector employers throughout New Jersey according to its official website, facilitates partnerships among businesses, government entities, and academic institutions according to its official website, and offers advocacy along with practical information and cost-saving benefits according to its official website.
Emigholz concluded: “If we can bring people together, I think we’re saving money, and we’re going to improve quality.”
