Bernards Township Board of Education outlines budget challenges and tax increases

The Bernards Township School District's Board of Education meeting on May 5, 2025, spotlighted a pressing budgetary challenge, revealing a projected tax increase of approximately 4% for the upcoming school year. This increase is primarily driven by rising costs in salaries and health benefits, alongside a significant reduction in state aid.

During the meeting, district officials outlined the budget process, which began in December and culminated in a public hearing. The board aims to maintain essential programs while being mindful of tax implications. However, the district faces a daunting budget gap, initially estimated at over $6 million, which has been narrowed to about $4.4 million through a combination of expense reductions and a proposed tax levy increase.

The budget breakdown indicates that salaries account for nearly 60% of expenditures, with benefits comprising an additional 16%. The district's financial strategy includes a 2.5 million dollar reduction in expenses and an increase in taxes by approximately $1.87 million, resulting in a total tax levy increase of 3.97%. This pattern of tax increases is becoming a trend, as similar scenarios were observed in previous years.

A significant factor contributing to the budgetary strain is Chapter 44, a state law that has altered the landscape of health benefits funding. Under this legislation, the district is unable to negotiate changes to health plans until 2027, leading to escalating costs that are projected to rise significantly in the coming years.

In addition to the budget discussions, the meeting touched on various capital projects, including roof replacements and energy efficiency upgrades, which are expected to alleviate some operational costs in the long run. However, the overall financial outlook remains challenging, with officials cautioning that the 4% tax increase may become the new norm for school budgets in New Jersey.

As the district prepares for the upcoming school year, residents can expect an average tax increase of approximately $405.97, reflecting the ongoing financial pressures faced by educational institutions statewide.