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Holmdel board approves $72 million budget; tax levy rises as bank cap exhausted
Summary
The Holmdel Township Board of Education approved the 2025–26 school budget on a unanimous roll call after a public hearing and board discussion. The budget increases the tax levy and uses fund balance and township-restricted funding; the board and administration said further budget work will take place this summer.
The Holmdel Township Board of Education approved the district's 2025–26 budget following a public hearing and board discussion.
Business administrator Debbie Donnelly reviewed the final figures the board presented to the public, including a local tax levy of approximately $65,000,003 and a district-wide budget of roughly $72 million. Donnelly said the district will use $305,000 of fund balance, receive $600,000 in restricted funds from the township for maintenance, and rely on miscellaneous revenues of just under $600,000 to balance the spending plan.
The administration told the board and the public the levy increase includes the 2% allowable increase under state rules, use of the district's remaining ‘‘bank cap’’ from the 2022–23 year and an adjustment for rising health-care costs. Donnelly said the district exhausted its remaining bank cap after applying a $1.3 million carryforward and that the district’s debt service increased by 5.81 percent versus the prior year.
President Demari opened the public hearing and then the board discussed the figures. The presentation included an estimated tax-rate impact: an estimated tax rate of 1.0626; for a residence assessed at about $1,000,000 the administration presented an illustrative difference of $612.94 per year (about $4.51 per month). Donnelly described instructional and support expenditures, including $29.4 million for instruction, $9 million for student support services, about $7 million for operations and maintenance and more than $15 million for employee benefits.
Board members and the superintendent framed the vote as necessary to preserve staff and programs while acknowledging the district faces further structural deficits. Vice president Lopresti and other board members said the budget committee will begin work earlier than usual this year and meet over the summer to develop options for the next fiscal cycle.
The board adopted the budget by roll-call vote; the chair announced: “Budget approved.”
Board members and administrators emphasized that additional budget options and public outreach will follow in July and August as the district prepares for the next budget cycle.
