PILOT PROJECT(S) / RESIDENTIAL DEVELOPMENT

Key Numbers in Funding Parsippany Schools

Key Funding Facts

Reference Information for Key Numbers in Funding Parsippany Schools

  1. The tuition rates are based on the 24-25 tentative budget approved by the Board of Education and County.
    Per student spending varies, based on education and support needs, the chart below breaks down projected per student spending estimates for the 2024-2025 school year.

Grade

Per Student Estimate

Kindergarten

$19,031

Grades 1-5

$20,550

Grades 6-8

$21,901

Grades 9-12

$23,338

Learning & Language Disability Classification

$25,936

Emotional Regulation Impairment Classification

$57,514

Multiple Disabilities

$43,092

Preschool Disabilities Classification

$36,231

  1. Of the $182,063,389 total budget for 2024-2025, $156,232,757 comes from the tax levy, which is limited by state law. The state law is discussed in this article: https://www.nytimes.com/2010/07/13/nyregion/13taxes.html?smid=url-share 

  2. The PTHSD School Board commissioned a demographic study that was completed in June 2020. This study included both PILOT and non-PILOT residential developments. The demographer projected that 2530 units would be added to municipal housing stock. These housing units are predicted to produce 637 additional students representing a 9.06% increase over the 7,136 students forecasted to be enrolled in the school district for the 2024-2025 school year.

  3. This is based on current PTHSD district policy , in relation to current capacity and funding. https://core-docs.s3.amazonaws.com/documents/asset/uploaded_file/3410/PTHSD/2631306/Policy_2000_-_Program.pdf

  4. There is no current obligation under law or any agreement that provides for the municipality of Parsippany-Troy Hills to allot PILOT funds to the school district.

  5. Approved PILOT Program developments include:

    1. 1515 Route 10. - Agreement provides for $61,000,000 municipal share to the township. https://parsippanyfocus.com/2019/02/22/the-district-at-1515-pilot-program-was-approved-4-1/

    2. 2 & 3 Campus Drive - PILOT payments equal $49,219,825. This development alone, by the township’s document shows that without the PILOT, this development would provide $56,937,369 to the school district, versus zero dollars with the PILOT. However, township leadership argues that this development would not happen without the PILOT, so those numbers are moot. https://www.parsippany.net/_Content/pdf/PILOT-Presentation-Table-1.pdf 

    3. 6 Sylvan Way & 7 Campus Way - $51,213,384 - https://www.parsippany.net/_Content/pdf/Redevelopment-Presentation-12-28-23.pdf 

    4. The numbers on 249 Pomeroy Road are unavailable, as the document provided for the financial agreement is blank: https://morrisfocus.com/uploadedmedia/2023/12/Financial-Agreement-249-Pomeroy-11-10-2023.pdf 

  6. The voice of each resident and voter is essential in ensuring that our students can be supported in their path to achievement.

PILOT PROJECT(S) / RESIDENTIAL DEVELOPMENT

FREQUENTLY ASKED QUESTIONS (FAQ)

Q: There are so many vacant office buildings in Parsippany.  Why can’t the Board of Education renovate one to a school?

A: The proposal of converting a vacant office building into an elementary school requires a thorough understanding of the complex steps involved in initiating and executing such a renovation project. Though the school district has yet to be formally presented with this option from the Township, discussions with district architects have shed light on the necessary procedures.

For example, converting an office building into an educational facility needs a series of preliminary steps. These include acquiring both the building and the land it stands on, obtaining essential approvals and permits from Parsippany Township, adhering to state regulations such as New Jersey Executive Orders 215 Level One and Level Two, and ensuring compliance with the specific guidelines outlined by the New Jersey Department of Education for educational facilities.

Key initial tasks involve securing a Will-Serve Letter from the Township for water and sewer services, conducting a Plot Plan and survey to evaluate the site's suitability, and potentially conducting a Traffic study to assess transportation effects.

Ensuing phases of the project entail obtaining approval from the Parsippany Township planning board and acquiring any necessary zoning adjustments and variances, such as ROL zoning. New Jersey Executive Orders 215 Level One and Level Two introduce additional guidelines for projects exceeding certain construction costs and land disturbances, necessitating compliance with environmental impact assessments.

Financial considerations play a crucial role, with approximately $300,000 in fees expected for the purchase and regulatory processes. Additionally, specific requirements such as installing a fire sprinkler system and accommodating kindergarten facilities like a full-size gym and multipurpose room need to be addressed. Adherence to New Jersey Department of Education guidelines, including the installation of new windows, is imperative.

Construction costs for such a conversion are estimated to be approximately $30,000,000.00, highlighting the significant investment by the Parsippany Troy Hills taxpayer required for the successful renovation of an office building into a fully functional elementary school.

In conclusion, the conversion of an office building into an elementary school demands thorough planning, strict adherence to regulatory outlines, and a significant financial commitment to ensure the seamless transition of the space into a suitable educational environment.

Q. Has the town received the PILOT money yet? Who controls the money? Where does the money go?

A. The real estate developer enters into the PILOT Agreement with the township that includes an Annual Service Fee that the developer pays directly to the township. The township, in its sole discretion, determines how much, if any, of that Fee is allocated to the school district. The Board of Education has made numerous attempts to discuss how the Annual Service Fee from the PILOT Agreements will be allocated to the school district. No agreement has been reached with the Township, nor has any money been allocated to the school district.

Q. Are you keeping track of the amount of times you are reaching out to the administration to sit down and discuss the PILOT money? If so can you provide us with updates?

A. The Board of Education has met with the Mayor on two separate occasions to discuss the PILOT Agreements. There have been numerous other attempts to schedule additional meetings. At this time there are no updates.

Q.  Has the school district and the township met to discuss the impact of PILOT Projects and commercial residential development?

A.  There has been one meeting in 2023 between the township and the school district to discuss these matters, with no agreement of how to address the decrease on funding to the school district by the tax-abated PILOT Projects. The school district has made numerous attempts to meet with the township to no avail.

Q.  Assuming that the PILOTS were not a factor, and the developers were just going to build the new residential units, what would change and please be specific?

A.  Residential developments are important as Parsippany’s ratable tax base transitions from commercial office space to commercial residential developments. Commercial residential developments will certainly have families with school-aged children. The additional children will require more  staff, resources, and potentially space, to accommodate the increased number of students. The district can accommodate some additional children within its existing buildings and operating budget, but a large influx as is estimated from the currently approved residential developments cannot be accommodated.

The district receives the majority of its operating revenue from the local tax levy on Parsippany’s ratable tax base. PILOT Projects remove those properties from the ratable base and lower the amount of revenue that the school district can raise. The effect is that children from residential PILOT Projects attend school tax-free while the additional costs for these children are paid for by other Parsippany property taxpayers.

Q.  Can  Parsippany High and Parsippany Hills High Schools be combined to  make Parsippany Regional High School? Can the vacant property be used to  build a new school?

A.  The current high school buildings would not be large enough to accommodate a new high school, as everything would need to be “doubled in size.” Therefore, the district would have to locate a large enough parcel of land and/or existing building big enough to accommodate almost 2000 students. Parsippany High School currently has 936 students, while Parsippany Hills High School currently has 1022 students. The district would have to discuss a project of this magnitude with our Architects; however, the taxpayers would be shocked by the overall cost of such a venture.

Q. Has there been a recent cost benefit analysis for combining both Middle Schools and High Schools.

A. There has not been a cost benefit analysis completed because there is simply not enough room to combine both Middle Schools and High Schools.

Q.  Who does the school district’s garbage? Does the district have money in budget for garbage/recycle in the budget?

A.  The town of Parsippany collects the district’s garbage. The district does not currently budget for garbage. It should be noted that the BOE does not charge the Town of Parsippany for use of their facilities (i.e., schools or ball fields). There has been a long-standing practice as well as a “shared understanding” between the “Town” and the “Board” that neither party will charge the other for these services.

Q.  There appears to be much open space at the following schools. What is the possibility of expanding these schools or others: Lake Hiawatha Elementary, Central Middle School, Brooklawn Middle School.

A.  The district would have to consult with their Architects and Site Engineers to assess the availability of open space at the above-mentioned schools.