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District warns of multimillion-dollar operating gap; staff, programs and trips may be cut
Summary
Administrators told the board that rising salaries, health benefits and transportation costs plus limited state aid are creating a budget gap. They presented possible reductions including increased class sizes, elimination or reduction of courtesy busing, athletic/field-trip fees and potential program cuts.
Hopewell Valley business administrator Robert Colavita and Superintendent Dr. Therese told the board the district faces a multi‑million‑dollar gap for the coming budget year and outlined options administrators would consider to balance the operating budget.
Colavita said most district spending is personnel-related and that costs for salaries, health benefits and transportation are rising faster than the 2% local levy cap allows. “We are at the highest levels of state funding since I've been here,” he said, but state aid accounts for only about 6–7% of the district’s revenue and cannot close the gap. He warned district reserves and one-time surplus carryover are not sustainable sources for recurring costs.
The presentation listed likely savings and service changes administrators are reviewing to narrow the shortfall: increasing average class sizes, reinstating athletic and co‑curricular fees, eliminating courtesy busing or charging the full cost, reducing or eliminating district‑funded field trips, phasing out some elective offerings (including auto shop), reducing supplies and consolidating administrative positions. Officials also cited pending contract settlements and steep projected health‑insurance increases as major drivers of next year’s expense forecast.
Transportation officials said driver shortages, rising fuel and parts costs and the expense of new routes are prompting the district to rethink courtesy busing; the district currently carries roughly 144 courtesy‑bused students whose families contribute a portion of the cost. Colavita said insurance and workers‑comp costs are expected to increase in double digits and that technology and special‑education tuition continue to pressure the budget.
Board members pushed administrators to prioritize protecting classroom instruction and student services. Dr. Therese said she had instructed building leaders to identify school‑level reductions that minimize instructional harm and to return recommended cuts in a February work session.
Administrators emphasized the operational and timing differences between the capital referendum and the operating budget: capital work funded by referendum can be reimbursed for eligible projects, while operating gaps require recurring revenue or cuts. The district said it will continue to seek state grants when eligible and pursue cooperative purchasing and in‑house maintenance to reduce costs.
The board directed administration to return specific budget scenarios and a list of recommended cuts in committee and at the February work session so the board can adopt a tentative budget in March.
