JERSEY CITY — More than 600 school district employees would be laid off and residents’ school tax would increase by 10 percent under a proposed budget that was sent to the county for approval Wednesday night.

The Board of Education, facing a $120 million budget shortfall and “draconian” reductions to state aid, presented a preliminary budget that — if adopted in May — would see 450 instructional staff positions, including teachers and teacher’s aides, and 260 central administration and non-instructional staff positions eliminated throughout the district.

In total, at least 630 current employees would be laid off under the initial $609 million budget. Eighty jobs are currently out for hire, which would have to be retracted if the budget is eventually approved, officials said.

But district officials stressed the interim budget was only approved to retain decision-making control over the fiscal outline and to meet the county deadline. A number of trustees said they would not vote for this budget in its final version.

"This interim budget is a kick-off of the process, and for the board to remain relevant in this process... we have to approve and send this to the executive county superintendent," board President Sudhan Thomas said. "If we vote no, or if didn't do anything, we would not be relevant anymore and would be given back a budget we have no control over."

Thomas noted the district made a similar budgetary move last year when they had more than 400 proposed layoffs that were not enacted. School districts are legally required to maintain a balanced budget sheet.

Wednesday night's budget also includes a 10 percent increase in the school tax, which officials said would equate to residents' property taxes increasing by roughly 2 percent.

Meanwhile, athletic programs district-wide could potentially be cut by $2.7 million under the proposal.

Board members voted 7-1 on the 2019-20 fiscal outline, facing a midnight deadline to send the proposed budget to the county superintendent. Trustee Matt Schapiro was absent for the vote, while trustee Joan Terrell-Paige voted no.

“I cannot vote for this budget,” she said. “I understand the shortfalls, I understand the state not contributing and I understand the state coming in the last 30 years and ripping this board of education’s budget apart. But what I don’t understand is for those 30 years our city administration contributed nothing to the schools” from PILOT deals in the city.

The district originally anticipated losing $14 million in state aid, but learned earlier this month that number was $27 million.

Jersey City Public Schools are also expected to lose about $6.5 million in state funding because an increase in enrollment in local charter schools.

Officials, meanwhile, have no estimates as to how much funds the payroll tax would bring in. State lawmakers last year passed a law to enact a 1 percent payroll tax on local businesses.

Real estate developers Mack-Cali and LeFrak are leading an effort to challenge the tax, although a Hudson County Superior Court judge dealt them a defeat last week — ruling the tax was “valid as a matter of law.” Both sides expect an appeal.

If the county superintendent approves the budget, the district will be able to change the outline and reduce the number of layoffs (or eliminate them entirely), officials said.

The board would then have roughly eight weeks to craft a revised budget. The final budget will be voted on in May.

Prior to the vote, board trustees laid much of the blame for the district's financial situation on the state, citing cuts to state funding and a school tax cap that was previously imposed.

"We have to recognize the position we've been put in over the past decade," said trustee Mussab Ali. "Ever since 2012, almost every single year our state aid has gone down. Keep in mind our population growth has increased."

“The board will continue to plug away over the next eight weeks and employ all avenues at its disposal to ensure a thorough and efficient education is able to be afforded to the 30,000 students of Jersey City,” Thomas said.

Corey W. McDonald may be reached at cmcdonald@jjournal.com. Follow him on Twitter @cwmcdonald_. Find The Jersey Journal on Facebook.