Business administrator outlines $2.4 million expense increase; district to use tax levy, reserves and school programs to balance budget

Glen Rock district business staff presented a draft 2025–26 budget showing roughly $2.4 million in increased expenditures, driven largely by higher health-insurance premiums and growing special-education costs.

At the Jan. 7 meeting, the business administrator summarized assumptions that underlie the tentative budget. Health-insurance premiums, the administrator said, account for about $1.1 million of the increase. Special-education costs — primarily out-of-district placements, transportation and related aides — added roughly $1 million. Utilities and custodial services rose by an estimated $600,000, and general salary and wage increases contributed to the remainder.

To fund those increases the draft relies primarily on the district’s tax levy. The proposal uses the district’s allowable 2% statutory levy increase plus a health-benefit cap adjustment the state provides when premiums rise beyond 2%. The administration also plans to use $200,000 of ‘‘banked cap’’ (tax levy room saved in prior years), a planned withdrawal from capital or maintenance reserves for nonrecurring expenses, and a contribution from the community school, which the administration said is returning to pre-pandemic activity levels.

Administrators noted the district is intentionally reducing its use of excess surplus in annual budgets — last year’s plan relied on about $1.5 million in surplus; this draft uses roughly $1.4 million — to avoid overdependence on one-time funds. The business administrator warned the board that the district is beginning to feel limits imposed by the statutory 2% tax-cap framework and that continued reliance on one-time surplus is not sustainable in the long term.

Other highlights in the presentation: the budget eliminates several previously approved positions and leaves only one new hire in the 2025–26 plan (a preschool teacher tied to the newly approved pre-K program). The administration also proposed modest changes to student/athlete insurance coverage to introduce cost-sharing consistency with employee plans (an 80/20 plan with a deductible).

Next steps

Administrators will deliver a tentative budget to the county by the statutory deadline in March and bring a public hearing on the budget in April. Board members asked only clarifying questions during the presentation and thanked staff for the detail provided to the budget committee.

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Sources: Budget presentation to the board by district business staff and summary materials in the board packet.