Bernards Township board unveils 3.97% levy increase, warns of program and staff reductions; public protests music and arts cuts

Bernards Township School District officials on May 5 presented a preliminary 2025–26 budget that would raise the district tax levy by 3.97% and cut staff and some arts programs as administrators work to close a multi‑million dollar funding gap.

The budget presentation, led by district business staff and Superintendent Nick Markarian, said the district began the budgeting cycle facing an initial gap of more than $6 million and, after a series of reductions and revenue adjustments, landed on a plan that would combine expense reductions and a levy increase equal to about 3.97% of the tax levy. The district cited a dramatic rise in health‑benefit costs under state law known as Chapter 44 as a primary driver.

Why it matters: rising health‑care costs that local districts cannot alter under Chapter 44 are forcing many New Jersey school systems to raise levies and trim programming. If adopted, the board’s plan would reduce some non‑salary spending, cut a number of positions across grade levels and alter several elective schedules. Those changes would affect hundreds of students and prompted dozens of parents, alumni and students to speak in opposition during an extended public‑comment period.

The budget numbers and legal constraints Nick Rallo (business administrator) explained the district’s multi‑year trajectory. “We identified an initial expense to revenue gap of over $6,000,000,” he said, describing a sequence of spending reductions that brought that figure down to roughly $4.4 million before the proposed mix of cuts and a levy increase. Rallo said salaries and benefits account for roughly three‑quarters to 80% of the operating budget, and that projected health‑benefit costs were a large, fixed component of the increase.

Rallo described Chapter 44 — the statute that replaced Chapter 78 — as a central constraint on local bargaining and benefit design, saying the law fixes certain plan designs and makes employee contributions a percentage of salary rather than of premium increases. “4% is the new 2% in terms of school budgets, unfortunately,” he told the board during the presentation.

The administration proposed trimming roughly $1.3 million from non‑personnel accounts, absorbing a projected $3.9 million jump in health‑benefit costs, and using a combination of tax levy increases, limited use of banked cap (about $153,000 noted in the presentation) and reserve transfers to arrive at the advertised budget. The district estimated the average homeowner’s annual school tax increase under the proposal at about $405.97, while noting assessed values rose roughly 11% in the preliminary data.

Proposed program and staffing changes Superintendent Nick Markarian and other administrators outlined reductions aimed at meeting the budget delta after non‑salary trims. Administrators said they were continuing the annual master‑schedule process and that final staffing decisions could change through June depending on retirements, attrition and students’ final course requests.

Planned reductions announced to the board included cuts across elementary, middle and high school levels and in some administrative supervisory positions (for example, a reduction in special-education and curriculum supervisor positions as described in the agenda materials). Specific programming changes discussed by staff and public commenters included: - Eliminating third‑grade strings and third‑grade choir as currently structured in the elementary schools (administrators said strings could be replaced by alternative mini‑units if the board chose not to eliminate entirely). - Reducing the middle‑school choral program to a much smaller weekly contact time unless the middle‑school choir conductor position is retained. - Consolidating certain midd le‑school special cycles (e.g., combining two art cycles into one at sixth grade, removing a seventh‑grade dance cycle, and cutting some eighth‑grade electives such as photography). - Reducing the number of elective sections at the high school, limiting students’ ability to move between levels and reducing flexibility for late schedule changes.

Administrators said some reductions were driven by lower enrollment in particular electives and by tenure/seniority rules that govern which positions can be reduced first. Markarian described the human impact directly: “The worst part is we’re going to lose a lot of great staff,” he said, drawing attention to the personal consequences of reductions.

Community reaction and public comment More than 50 members of the community, including many current students, alumni and parents, used the extended public‑comment period to plead for preservation of music and arts programs, reinstitution of specific positions and greater transparency. Students and parents described the local arts and music programs as foundational to both academic and social development and warned that eliminating third‑grade strings and reducing middle‑school choir time would weaken the pipeline into award‑winning high‑school ensembles.

Fourth‑grader Amelia Gulati testified in support of her elementary art teacher: “Miss Cody has a way of really seeing and knowing her students,” she said. Older students and alumni described the middle‑school choir position as essential to maintaining choral excellence at the high school and urged the board to restore the position rather than distribute its duties among already stretched staff.

Board response and next steps Board members repeatedly described the choices as painful and said they are trying to minimize student impact while balancing statutory limits and fiscal realities. Several board members — including Board Member Brent Shaw and Board Member Janice Crotta — thanked speakers for attending, noted reductions to administrative positions already included in the plan and said they would continue to examine options.

During discussion the board informally asked whether the middle‑school music position could be restored; board members indicated support for a one‑position restoration to help make the schedule feasible, but made clear any restoration would be contingent on final budget calculations and the district’s ability to fund the change.

Formal actions on routine agenda items The board conducted routine roll‑call votes to approve the superintendent’s report, minutes and committee agenda items (finance, personnel, curriculum). Those motions were approved by roll call during the meeting; the full budget itself had been advertised earlier and the meeting served as the public hearing and discussion forum. The administration said it will return in June with final staffing resolutions once the master schedule is complete and the district has a clearer picture of retirements, attrition and final enrollments.

What’s next: timeline and constraints Administrators said the county executive superintendent already approved advertisement of the preliminary budget so the district could hold the legally required public hearing on May 5. The district warned that Chapter 44 plan designs cannot be renegotiated until Dec. 31, 2027, limiting near‑term flexibility on benefits costs. Administrators and the finance committee said they are continuing to examine options including joining a school health insurance fund, additional grant opportunities (Board of Public Utilities incentives for energy projects), and potential acquisition of a district‑owned bus (estimated cost discussed: ~$75,000 with a 3–4‑year payback) to reduce recurring leased‑bus expenses.

The board opened its next meeting for further public discussion and said it will revisit final personnel assignments and any possible restorations in June after the master‑schedule work is finished.

Ending: community, legal and fiscal constraints In short, the district presented a budget driven by statutory health‑benefit rules and rising claims costs that staff said left them little room but to combine reserve use and program reductions with a nearly 4% levy increase. The presentation and the public response made clear that any final decisions will weigh heavy on community priorities for music, arts and student services as the board finalizes staffing and course schedules in the coming weeks.