Caldwell-West Caldwell board adopts $64.86 million tentative 2025–26 budget; approves bonding for $8 million field house plan

The Caldwell-West Caldwell Board of Education voted 5-0 to submit its tentative $64,862,066 2025–26 school district budget to the Essex County superintendent of schools during a public budget hearing at James Caldwell High School. The board approved the budget after a presentation by Brian McCarthy, the district’s school business administrator and board secretary.

McCarthy told the board the budget is built around the state’s 2% statutory tax-levy cap and rising costs for salaries, health benefits and utilities. “The budget is nothing other than a planned, a plan for expenses and revenue for our 2025–2026 fiscal year,” McCarthy said, outlining revenue sources, one-time withdrawals from capital reserve and projected operating expenses.

The budget package presented to the board included an operating (general fund) figure McCarthy identified as about $57,000,002.11 and a net total following transfers of $64,862,066 as read during the resolution. McCarthy said the district is budgeting a 2% increase in the tax levy and noted roughly $1,039,000 in additional revenue from that increase. He also described one-time revenue items and reserve withdrawals the district planned to use; among them were withdrawals the presentation identified as $954,000 for vestibule work at Wilson and Lincoln schools and a $3,000,002.50 withdrawal from capital reserve to front-load principal payments on recently issued debt.

McCarthy summarized other revenue and expense items the budget reflects: roughly $600,000 in annual federal IDEA funds for special education supports, ESEA (Title I) funds for after-school programming, about $35,000 in additional transportation revenue from shared services, and a 20-year bond sale that settled May 15 at a 3.97% net interest cost. He said salaries and employee benefits account for about 80% of district spending and that regular-program instruction is up about $1 million year over year, primarily for salaries.

Board members asked clarifying questions and made public comment about facilities. A member of the public, Matt Mcgus of 39 Forest Avenue, asked whether the district would again use roughly $2 million from capital reserve for a new field house given a prior, larger proposal. Brian McCarthy replied that the new plan is an $8,000,000 borrowing and that the district is not planning to use that capital reserve contribution on the scaled-down project; the reserve will remain available for other capital needs. McCarthy explained the district keeps capital reserve funds in an interest-bearing account for unplanned capital needs (for example, roof repairs).

During discussion, the board president (identified in the transcript as “Bridal”) thanked McCarthy and Superintendent Dr. Conklin and emphasized that the board had made “very, very minor cuts” and that there were “No cuts to curricular instruction or to staffing, at the building levels.” The board also requested a five-year projection to monitor sustainability, as McCarthy had warned that a persistent gap between a 2% tax-levy cap and higher expense growth is not sustainable long-term.

The board approved a resolution to submit the tentative 2025–26 budget to the Essex County superintendent of schools; the recorded roll-call vote was: Miss Demartini — yes; Miss Landaupe Jefferson — yes; Miss Mac/Mack — yes; Mr. D’Ambola — yes; Miss Grosso — yes. The motion carried 5–0. The resolution, as read into the record during the meeting, listed total expenditures net of a $3,250,000 transfer from capital reserve at $64,862,066.

McCarthy and board members also reviewed upcoming steps: the district expects to prioritize referendum projects by health-and-safety need and proceed to bid. The board noted a forthcoming architect presentation about a scaled-down field house design, with architect Greg Somjian scheduled to present on May 19. The board also announced that Dr. Lydia Furnari will be introduced as interim superintendent at the May 19 public meeting.

The board opened the public-comment portion for this budget hearing, heard questions from one resident and then moved to a vote. Following adoption of the budget, the board moved to enter executive session and adjournment was scheduled after that closed session.