Property Taxes Part II – What Property Taxes Fund

-Authored by the Short Hills Association and submitted by Jay Morreale

This is the second in a series of articles by the Short Hills Association on property taxes and the reassessment process.

As covered in the first article, property tax funds schools, municipal government and county government and to a small degree the library.

In this article we will cover uses of those tax dollars.

Budgets are the starting point for understanding how property tax dollars are used. They reflect the plans the governing authority has for the upcoming fiscal year. Reality may diverge over the course of the year due to unanticipated expenditures or changes in plans. For a fuller understanding of the process from budgets, to actual spending, to financial reporting and audits, this NJ21st article provides a more detailed picture.

Millburn School Budget

The 2025-26 school budget was $112.2 million of which $101.1 million was funded through property taxes. This represents 51.5% of the total Millburn property taxes collected. Millburn has a significantly higher proportion of children than the NJ and national average. For comparison, the nationwide percentage of persons under 18 is typically around 22%, whereas Millburn sits at over 30%. Nearly half of Millburn households have children under 18, whereas only about one-third of households statewide do. School enrollment is 4,539 which is the lowest point in the last 15-years, from a high of 4,997 in the 2012-13 school year.

Millburn Township Municipal Budget

The 2025 budget for the municipal government (including library) was $75.5 million dollars of which $48 million came from property taxes. This represents 25.5% of the property taxes collected. The chart below shows the breakdown of spending by service provided by the local government (Insurance and “Other Services” account for the other 5.7% not shown).

Municipal services funded by property taxes include:

● Public Safety: Police, Fire, Dispatch, Crossing Guards.
● Garbage: Trash and recycling collection
● Library: Overseen by Board of Trustees (not municipal government)
● Public Works: Streets, Sewers, Snow Removal, etc.
● Recreation: Parks, Pools, Golf Course, Recreational Programs
● Admin: administrative departments, finance, legal, engineering, etc.
● Capital and Reserve: Debt principal and interest, equipment capital outlay,
Reserve funding (Tax appeals, debt service, etc.)
● Other Services: animal control, contingent, interlocal, court, etc.

Essex County Budget

The 2025 budget for the county government was $874.1 million dollars of which $459.8 million came from property taxes. Millburn is one of 22 municipalities in Essex County and ranks 12th in population, 5th in total area, and 17th in housing density. Millburn paid $43.6 million to Essex County representing 23.1% of property taxes collected by Millburn.

County services funded by property taxes include:
● Public Safety: Operating the Essex County Courthouse, County Jail,
Prosecutor’s office and Sheriff’s office.
● Health and Human Services: Funding for county-run health programs, senior
services, and welfare programs.
● Parks and Recreation: Maintaining regional parks such as Branch Brook Park,
Turtle Back Zoo, and South Mountain Reservation.
● Education: County Schools of Technology.
● General Government: Functions including the County Executive, Board of
Commissioners, Board of Elections, Finance, and other unclassified operations.

Summary 

In summary, property taxes fund the local school system, the municipal government, and the county government. The services provided by each are outlined in this article. The budget for each of these entities drives the property tax obligations for property owners both residential and non-residential. In a future article, the process for determining individual property tax will be covered. 

For more information or questions, please contact us at [email protected] or refer to the links below. 

A Short History of New Jersey Property Tax 

New Jersey Property Tax Data 

Millburn 2025 Budget Presentation 

Essex County Budget 

Patch County Budget Article 

Essex County NJ 

School Budget 2025-26 

2020 Census NJ 

NJ21st Budget Article 

Short Hills Association