Hoboken: Very low Tax Trauma Index

With all the complaints about rising real estate costs in Hoboken and surrounding areas, it’s interesting to put things into context from time to time, looking at all the variables, such as average residential tax bill, average home value, average homeowner income, and where they rank statewide, and what percentage of income/property tax is.

While the median income in Hoboken is 70k, the median homeowner income is closer to 160k.

In the chart below (click to enlarge), Hoboken, while ranking in the middle for average annual tax bill, ranks in the top 10% in home value, and in the lowest 3% for percentage of income vs. tax. Thus, receiving a very low “Tax Trauma” score.

The Tax Trauma index was created by The Star Ledger, and more can be read about it in this article:

http://www.nj.com/news/propertytaxes/index.ssf?/str/taxes/trauma.asp

Click the image below to enlarge.

hobokentaxtrauma.png

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6 Comments on "Hoboken: Very low Tax Trauma Index"


estevens
Member
10 years 1 month ago

Oh dear. tburns must be Theresa Burns, BOE trustee. Good – maybe we can straighten this out.

I remember your letter to the editor (Hoboken Reporter, 4/02/06). You stated that the budget includes monies for the two Charter schools ($3.7M), reading, after-school and health programs (over $1M, let’s say $1.3M), and the Abbott Preschools (you didn’t specify, but let’s say $5M for one heck of a pre-K babysitting system). That brings us down to $41M. Now, if we’re left with 2000 students, after subtracting those in pre-K and the charter schools, our numbers work out to $20,500 per student. Right back where we started, more or less.

Am I way off on the number of students? If not, how do I get down to the $14,498/student total that you quoted in your letter (which is still far above the state average in a state that has among the highest, if not the highest, education costs in the nation)?

Note: subtracting funds for the high school’s multi-billion dollar football program will not allowed in this exercise.

estevens
Member
10 years 1 month ago

I’m not quite sure what sort of formula the NJDOE uses to get their numbers. I recall their site listing the Hoboken school system costing something like $13K per student. Assuming that there are 2500 kids in the system (I’ve seen numbers between 2000 and 2500 – it may be 2500 with the charter schools):

$51,000,000 / 2500 students = $20,400 per student. Still pretty high, even figuring conservatively.

Am I right? Am I wrong?

tburns
Member
10 years 1 month ago

Scott is correct – no “parity” funding from Abbott for Hoboken. Early Childhood IS funded.
As far as the budget – the NJ Department of Education school report card gives financial data for the district. But, no… it is not $25K per student.

estevens
Member
10 years 1 month ago

Hmmmm. I may have been wrong about the Abbott funding. Googling for a copy of the Hoboken school budget brings up nada so far, making it a bit difficult to check.

What I am certain of is this: Hoboken spends over $50M to educate 2000 kids (K-12). That’s $25K+ per kid.

scott
Member
10 years 1 month ago

Actually, hoboken does not get any Abbott funding – it is the only one in the Abbott group that gets no money. It may get other funds for school construction and whatever, but its not like in other urban areas.

If you look at your property tax bill, you will see a big chunck going to the school system.

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