The Art of Spin: Financial Support for Holmdel Schools

A press release is expected to be a concise, official document issued to announce newsworthy information.

The press release issued by the Holmdel Township Committee (“TC”) on Feb. 24, 2026 (“Press Release”), just one day ahead of an important Board of Education meeting on Wednesday night, is not one of those.  Instead, it takes media spin to a new level.

Debunking the Press Release

The Press Release asserts a record $21 million in support for the school district based on three key figures:

(a) The Holmdel School District received nearly $6.5 million that was funded or driven by the Holmdel Township Committee.

(b) The School District “received” $8.6 million in tax revenues generated by the “Bell Works development”.

(c) Holmdel schools are projected to receive more than $6 million over the life of the Vonage PILOT program.

Let’s take a closer look at what these three assertions say and don’t say.

1a. The Press Release was very careful to say that the schools “received” $6.5 million.  Take note that it didn’t say the Township paid or funded $6.5 million.

The Press Release did not break down the $6.5 million; however, it is almost certain that more than 50% of this amount is from a $3.5 million state grant.

Since the schools have no jurisdiction for road improvements, the Township had to be the legal entity to apply for and receive a state grant for road improvement to relieve congestion in front of the high school at the corner of Crawfords Corner Road and Longstreet Road.  It is great that the Township facilitated the state grant application, which resulted in the $3.5 million.  However, it is somewhat disingenuous to include this amount in the $6.5 million figure since the money came from the state grant and the Township was simply the facilitator.

1b. In 2016, in response to various mass shootings in schools, New Jersey passed a law establishing a special class of law enforcement officers (“SLEOs”) to provide security in schools. 

Holmdel Township has a shared services agreement with the school district in which a portion, up to 100%, of the cost of SLEOs is paid by the Township.  It appears that most of the remaining balance of the $6.5 million is the result of providing security officers at the schools.

1c. The Press Release mentioned authorizing $600,000 in 2025 to maintain courtesy busing.  However, to the best of our knowledge, no actual payment has been made to the school district yet.  It’s not clear whether the $600,000 amount is included as part of the $6.5 million figure.

2. The Press Release stated that the schools received $8.6 million from the Bell Works development.

The Bell Works redevelopment included 40 large single-family homes known as the “Reserve”, built on the Roberts Road side of the development.  Unlike the Regency townhomes near Crawfords Corner Road, these single-family homes pay regular Holmdel property taxes.

With the $8.6 million figure, it seems the TC is adding the regular taxes paid by this 40-unit development and taking credit for funneling that money to the schools.

This implication is false and misleading.  As one TC member said at a recent meeting, “The school budget is the school budget.”  In other words, if the Bell Works had not included the Reserve, the schools would still have received the $8.6 million.  Simply put, the school sets the budget, and the tax levy on homes is adjusted based on the assessment of the homes to meet the required tax levy the school district needs.  No development changes the amount of money the schools receive.

It’s the PILOT!

The other side of the Bell Works coin is the PILOT, or Payment In Lieu of Taxes, deal that the TC struck with the developer.  While normal property taxes send approximately 69 cents of every dollar to the schools, in a PILOT arrangement, the schools get zero, while the Township gets 95 percent of PILOT payments to spend as they see fit.

In a Press Release of surprising assertions, it is unsurprising that it says nothing about the $32 million that the Township has received cumulatively since the Bell Works PILOT program began.  This windfall has allowed the Township Committee to increase its spending by more than $22 million over the last five years, on a cumulative basis, using 2020 as the baseline, while giving them a beloved talking point, as they claim no tax increases during the last five years.

Another PILOT

3. The Press Release asserts that the schools are projected to receive more than $6 million as a result of the Vonage PILOT program.  It is important to note that, as of now, there is no formal sharing agreement for the Vonage PILOT program with the school district.  The schools will receive nothing from the Vonage PILOT program without a formal sharing agreement in place.

Bottom Line

The TC is asserting an “investment” in the schools of more than $21 million. If you really parse the Press Release and until the Township actually pays over the $600,000 for courtesy busing, the only tangible financial support that the school district has received is for the special law enforcement officers on school premises, which, arguably, the Township should pay as part of its public safety program.  In either case, the amount for SLEOs has been around $350,000 per year until a jump to $450,000 in 2025.

The bottom line is that this Press Release includes no announcement of any new financial support for the schools, which are facing a budget deficit of $5 million.

One of the major contributors to the school budget deficit is the steep increase in the cost of healthcare.   While the Township has also faced sharply increasing healthcare costs, the Township Committee has dealt itself a stacked hand with two PILOT programs that allow it to easily clear such hurdles while leaving our schools, and as a result, our teachers, children and parents, to struggle.

Stay tuned.  The school district’s budget deficit needs to be resolved soon.  Perhaps a real announcement will be forthcoming.

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