Dear Editor:
It’s been 16 months since the PILOT projects were approved by the Town Council in January 2024, despite the citizens of Parsippany’s objections. At this week’s Town Council meeting, Mayor Barberio announced that a Memo of Understanding (MOU) related to the PILOT projects was sent to the Parsippany BOE.
During the public meeting, Mayor Barberio disclosed several features of the proposed MOU. Possibly the most critical point he made is that the submitted MOU only includes PILOT projects approved in 2024 and does not include previous PILOT projects that he did not negotiate. This precludes 1515 Route 10, which is currently being occupied. While the number of students so far from that project is small, demographic projections suggest that over 200 students could come from this one property.
The Mayor correctly points out that the increase in tax revenue for the school district is capped at 2% per year, regardless of the change in ratables. However, he is profoundly mistaken in thinking there will be no impact on the school district. The school district will absorb the cost of educating children from 1515 Route 10. At an average price per student of $20K to $25K, 200 students would result in an additional unfunded cost of $4 to $5 million annually. That the Mayor did not negotiate the 1515 Route 10 PILOT agreement is wholly irrelevant since the school district will still educate those children. This arrangement will inevitably result in increased class sizes and reduced resources. While the Mayor made his announcement, several parents at the Board of Education meeting spoke up to voice their legitimate concerns over substantial class sizes. Assuming the MOU portrayed by the Mayor eventually results in an actual shared revenue contract, no funds to the school will be forthcoming related to 1515 Route 10.
Interestingly, the Proposed Town Budget did not include additional money for PILOT Revenue sharing. That indicates the Town does not anticipate additional funds to the school district above the normal tax levy plus 2%. As has been previously pointed out, additional unfunded expenses of at least $4 to $5 million, EVERY YEAR for the next 30 years, will arguably devastatingly impact the school system, especially given anticipated systemic losses resulting from the mismatch of inflation combined with the 2% revenue cap.
Jack S. Raia
