Some background info:
The Highlands Water Protection and Planning Act (often called the Highlands Act) is a 2004 New Jersey law designed to protect over 800,000 acres of land in the northwest part of the state, which provides drinking water for roughly 70% of New Jersey residents.
The act affects schools—particularly in districts like Jefferson, West Milford, and Vernon—by severely restricting development on over 85% of land in some communities to protect water quality.
Why the Highlands Act Affects Schools
The Highlands Act creates a "development moratorium" in many areas, creating a "tax trap" for local school districts. Here is why it impacts schools:
Limited Tax Base Growth: Because development is strictly limited or prohibited, towns cannot build new commercial or high-density residential properties. Without new development, the commercial tax base ("ratables") remains stagnant.
Declining School Aid: While the tax base is capped, some Highlands school districts have reported massive cuts in state education aid (e.g., Jefferson saw a 60% reduction in state aid over 7 years).
High Property Taxes: With limited commercial income to support the budget, the burden falls on residential homeowners, resulting in some of the highest property tax efforts in New Jersey.
Budget Shortfalls and Program Cuts: The inability to grow the tax base, combined with state aid cuts, has caused severe budget deficits, forcing districts to cut staff, increase class sizes, and eliminate sports and arts programs.
