Click Here For Link To Original Post by Ocean City Sentinel on September 24, 2025: Somers Point schools seek $5.6 million referendum ‣ Ocean City Sentinel
Bond Issues for governments and public schools are like mortgage loans for homeowners. The borrowed money must be paid back for the next 20 to 25 years. The debt is secured by all real estate in town and lowers its value. All money must be paid back with interest. Borrowers pay “transaction fees” in addition to interest. Homeowners pay application fees and “points” to banks. Governments and public schools pay pay fees to expensive lawyers, accountants, insurers, bond brokers and other Wall Street professionals. Those “transaction fees” are roughly 3% to 5% of the money that is borrowed. Roughly $168,000 to $280,000 of the money borrowed will pay for “transaction fees”.
The Somers Point Board of Education also spent roughly $40,000 on consultants to “persuade” voters to vote “yes” to approve this loan. They also urged the Board Members to hold a special election in December of January. They said voters are more likely to reject bond issues during regular November elections when most people vote. However, the Board rejected a special election because it would cost taxpayers an extra $25,000. As a result, the Ballot Question to approve borrowing $5.6 million will be on the General Election ballot on Tuesday, November 4.
Why is it normal for governments and public schools to borrow money for normal repairs and maintenance and to always be in debt today?
At one time it was normal for homeowners to live debt free after their mortgage was paid. At one time, it was normal for governments and public schools to be debt free when a new road, bridge, or building was paid for. Not anymore. Why?
- Do Americans today care less about the legacy they leave to their children and grandchildren?
- New Jersey local budget laws do not require public officials to budget for predictable replacement and repairs. In Florida, officers of condominium associations can go to jail if they do not set aside enough “reserves” to repair or replace roofs, elevators, or heating and air-conditioning systems when needed.
- Federal and State politicians often reward “selected” local officials with bailouts. By doing this, they buy loyalty and support in future elections. Local politicians who are not lucky enough to get bailed out would rather borrow money and force future generations to pay for today’s benefits rather than raise taxes to pay as they go.
- Federal and state laws make it expensive for government to repair or replace almost anything. There are complicated environmental laws and “Diversity Equity and Inclusion” hiring requirements. Since Democratic Governor McGreevey began “Project Labor Agreements” in 2003, schools and local governments can only hire union contractors. This contractors have to follow many complicated work rules besides paying much higher wages than what non-union companies pay.
Somers Point schools seek $5.6 million referendum
Superintendent says it would not raise tax rate
SOMERS POINT — The Somers Point School District has included a bond referendum on the ballot Nov. 4, seeking $5.6 million in improvements with a state share of $1.9 million.
Superintendent Ted Pugliese said last week that the district must make key improvements to the buildings to ensure a safe and effective learning environment into the future.
He said voter approval would secure state aid and result in no tax increase because the district is retiring debt equal to the proposed borrowing.
“With the help of state aid, the district can finance the facilities improvements and continue to make payments at the same level as the one that will be paid off, with no tax increase,” according to a presentation on the district website. “This is a fiscally responsible, well-planned referendum. Debt payments from a previous school referendum will be paid off in July 2026. The estimated tax impact for the proposed referendum would pick up where those payments leave off, with no net tax increase.”
The bond referendum would provide upfront funds for large, long-lasting facilities improvements that the presentation likened to a homeowner using a home equity loan to replace a roof or install new windows, for example.
Proposed renovations would increase security and accessibility, enhance efficiency, update the buildings and expand preschool to maintain state funding.
One project would expand the preschool program at Jordan Road School by converting classrooms to accommodate 10 spaces with individual bathrooms and security doors.
Another would boost security and accessibility by upgrading the fire alarm system to improve emergency communications, add key card access to doors throughout the building and apply security coating to selected windows.
Other upgrades at Jordan Road School:
— Create a new parking lot with additional spaces to increase on-site parking and reduce traffic congestion during peak periods;
— Modify emergency generator infrastructure and panels to accommodate addition of kitchen equipment, and upgrades to the security and fire alarm systems;
— Renovate selected bathrooms to increase accessibility;
— Remove flooring in main office areas to eliminate asbestos-containing materials and replace with durable, environmentally friendly tile flooring;
— Repair and replace selected windows, ceilings, interior doors, exterior walkways and ramps that are worn or damaged;
— Add new exterior security fencing to complete the perimeter border near the playground;
— Upgrade HVAC systems to improve classroom temperature and humidity control and energy efficiency;
— Repair exposed galvanized piping in a closet to align with current standards;
— Recoat the roof to protect the building from elements and extend its lifespan;
— Remove selected classroom flooring and adhesive, and selected ceramic wall tile, in compliance with state asbestos-removal requirements;
— Remove existing refrigerator and freezer that are being used for storage and enclose the opening;
— Renovate the office area to relocate central office staff members from New York Avenue.
Dawes Avenue School
— Upgrade fire alarm systems and emergency communications;
— Add key card access to doors throughout building;
— Renovate railings around the playground to enhance safety and add fencing to increase security;
— Upgrade HVAC systems;
— Replace interior carpeting to streamline maintenance and improve air quality;
— Make exterior repairs to reduce the risk for leaks during heavy rains;
— Correct southeast parking lot drainage issues to reduce flooding;
— Renovate the loading dock for better efficiency of operations in that area of the parking lot.
Board offices at
New York Avenue
— Recoat the roof to protect building from elements and extend its lifespan.
Pugliese said he and other members of the administration examined the long-range facilities plan and pared it down to what would fit into the financing available.
“Districts usually try to time this so there is a tax-neutral move,” he said. “It’s impossible today for school districts and municipalities to operate without debt service, so you try to time that and pick the amount correctly so you do so in a tax-neutral way.”
The superintendent said the tax-neutral nature is one of the two big selling points, the other being that the district, which has been losing state aid steadily for years, would recoup some through the $1.9 million that would come from the state with the preschool expansion.
“We are facing reductions in state aid, budget issues and we operate very fiscally responsibly — we spend $1.1 million less than the state thinks we should be spending, and they are not going to fund that difference. We thought it best to go out to referendum now as it’s the only way the local district does not have to foot the entire bill,” Pugliese said.
The district has been struggling with its budgets for years, largely due to a dwindling supply of state aid. Under the Student Funding Reform Act of 2018, the district lost more than $4 million to just $2 million for 2024-25. It saw a loss of another $65,000 for 2025-26.
Last year, facing more than $1 million in aid cuts, the district was able to raise the tax levy 8.5 percent and tax rate 8.78 cents while using the additional monies to fund three teachers, basic supplies, technology and capital projects while cutting nine staff positions.
Pugliese said the district could have raised the tax rate as much at 13 percent, putting it closer to the expected expenditure, but chose not to do so.
– STORY by CRAIG D. SCHENCK/Sentinel staff
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