At its March 26 meeting, the Mahwah Township Public School District Board of Education heard a budget presentation outlining rising costs for special education, employee benefits and utilities and the district’s plan to expand in‑district services for autistic students.

Doctor Murphy, a district staff member who presented the slides, said the district currently has 449 students enrolled in in‑district special education programs and about 68 special‑education students placed out of district. The district’s total tuition line for public and private out‑of‑district placements is “over $6,000,000,” she said, representing roughly 7.6% of the operating budget; the district expects roughly $600,000 in IDEA (federal) funds to be applied against those costs.

The presentation emphasized that when the district is able to bring programs in‑house it both benefits students and reduces costs. As an example, the district will open an in‑district pre‑K through grade 3 autism classroom next school year in partnership with Bergen County Special Services and plans to add a kindergarten–3 section to allow students to continue in‑district services.

The board heard that employee benefits are the largest single budget driver after salaries. Doctor Murphy reported total contractual benefits approaching $13,000,000, about 15.6% of the operating budget, and said roughly $10,000,000 of that is for medical, prescription and dental benefits. Employees currently contribute about $2,300,000 toward health benefits—approximately 21% of the health cost, the presentation noted.

The district switched from the state school employee health benefits plan to a private plan through Horizon Blue Cross Blue Shield earlier in the year; the move produced an estimated combined savings for the district and employees of about $900,000, the presenter said, but insurance rates still rose about 2% between December and January. The district is budgeting a 12.25% rate increase for next January and said state and private plans are projecting double‑digit increases; that increase qualifies the district to seek use of the state health‑benefits waiver that allows a larger tax levy increase when health costs exceed 2% growth.

Other operational pressures flagged included a projected utilities increase of roughly 18% beginning in July and higher prescription costs. The administration said it is renegotiating the district copier contract and expects savings there that can help offset utility increases. The presentation also stated the district has increased the security line to provide either a school resource officer or a school security officer at every building.

Doctor Murphy closed by reminding the board of two follow‑up presentations scheduled for April 9 covering enrollment, personnel, transportation and capital projects, and the final public budget hearing on April 30, when the board will present tax‑impact figures and is scheduled to adopt the final budget.

The budget overview was presented for discussion; no final budget action was taken at the March 26 meeting. Board members asked clarifying questions during the presentation and the administration agreed to present additional detail at the April meetings.