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Finance committee flags $3 million health-benefit shortfall; no separate levy recommended
Summary
The Bernards Township Board of Education finance committee reported a projected $3 million overrun in health-benefit costs for 2024–25, a reduced fund balance and a recommendation not to pursue a separate ballot question for additional levy revenue at this time.
The Bernards Township Board of Education finance committee reported that health-benefit costs are running well above budget for 2024–25 and that the district will need to address a multimillion‑dollar shortfall in the next budget, officials said.
At its Aug. 20 meeting, the committee reviewed July claims and unaudited projections that show health benefits over budget by about $3,000,000 and a targeted fund balance that closed at about $1,700,000, down from a $4,000,000 target. "Health benefits were over budget by $3,000,000," said Dave, a staff member who presented the finance report.
Why it matters: the committee said rising benefit costs and planned salary increases will put pressure on the district's next tax levy and operating budget. Committee materials and discussion cited July claims of roughly $2,100,000 against a $1,800,000 monthly budget and projected health‑benefit trending in the high range.
Details from the review: presenters told the committee that salary increases alone would require about a $2,100,000 increase in levy revenue. Committee projections also included a potential 15% increase in health‑benefit costs; presenters said that scenario would translate to roughly a 3.3% increase in the tax levy under the district's current assumptions. The committee emphasized that one month of claims data is not, by itself, predictive of a full‑year trend.
After examining expense‑reduction options and other revenue sources, the finance committee concluded it would not recommend placing an additional levy question on a ballot at this time. The committee said available levy adjustments could address the primary driver of increased costs (health benefits) without a separate ballot measure.
Board action on consent financing items: the board subsequently approved two financing items by roll call vote during the regular meeting. The roll call recorded unanimous approval from the members present.
Next steps: presenters said the committee will continue monthly review of health claims and that the district will need to address the fund‑balance gap in the next annual budget process. No formal levy referendum or timetable was adopted at the meeting.
