Roxbury board adopts tentative-budget language using banked cap after business office details state-aid losses and rising costs

The Roxbury Township Board of Education voted on April 7, 2025, to approve revised language for its tentative 2026 school budget that uses banked cap to help cover a funding shortfall, the board's business administrator said.

Business Administrator Joseph Mondanaro told the board the district has lost millions in state aid in recent years and is facing rising fixed costs, particularly for special education and health benefits. "From 02/2019 through 2026, we lost $7,700,000," Mondanaro said during a presentation explaining the budget adjustments.

The move to include banked cap in the tentative budget is intended to cover specific adjustments allowed under state rules, Mondanaro said. The business office presented a proposed 2026 tax levy with the banked cap at $65,092,464, which Mondanaro said represents a 4.37% increase over 2025. He told the board that, on a $400,000 home, the change would translate to an increase of $356 in the annual school tax bill and a tax bill of $7,344.

Why it matters: Mondanaro said the district's revenue picture has changed because of adjustments to New Jersey's school funding formula and related S‑2 (SFRA re‑balancing) actions that reduced Roxbury's aid. He described three primary drivers of state aid: enrollment, property values (ratables), and household income. The district reported a loss of 335 on‑roll students from 2017 to 2025 and said on‑roll special‑education counts have increased.

State aid and local impacts: Mondanaro identified several specific aid changes: equalization aid fell from about $3.4 million last year to zero for 2026; categorical special education aid increased (the presentation cited $4.3 million for categorical special ed this year) while transportation aid rose to $1.9 million. He also said the district did not receive stabilization aid this year (stated as $836,990 the prior year). Mondanaro said that taken together with prior years' adjustments, Roxbury had experienced multimillion‑dollar reductions compared with earlier funding levels.

Rising costs and program pressure: The business office described a set of cost increases that contributed to the projected budget gap: a 3.4% salary increase (stated as about $1.6 million), a 15% health‑benefit increase (about $2.1 million), a five‑year custodial contract increase (about $105,000), and higher property and liability insurance (a 15% rise cited at $203,000). Mondanaro said the district also lost revenue when Dover ended a shared transportation arrangement early, costing roughly $445,000 in revenue.

Special education was a focal point. Mondanaro said six students unexpectedly entered the district from other districts, with associated tuition, transportation and 1:1 staffing costs, which the presentation estimated at roughly $1.3 million in total. He gave an example of one out‑of‑district placement adding up to about $335,000 for tuition, a 1:1 aide, nurse and transportation. The presentation also said out‑of‑district tuition and transportation costs have climbed substantially since COVID, in some cases by 20–40%.

Planned adjustments and safeguards: Mondanaro told the board the district is avoiding layoffs of employees in good standing; instead, it will not fill 15 positions that became open through resignations, retirements or nonrenewals. He described a series of mitigation steps already in the budget plan: a 10% cut to school budgets, reductions in curriculum lines, delaying a technology refresh (Chromebook replacement), budgeting extraordinary aid and using maintenance and capital reserve buckets. The business office said it is budgeting $1.2 million of maintenance reserve and has used about $3.9 million of unspent funds (fund balance) to support the next year's budget.

Banked cap explanation: Mondanaro explained banked cap as the unused portion of a district's allowable 2% levy increase that can be carried forward, plus specific state‑recognized adjustments (waivers) for fixed costs such as enrollment and health‑benefit increases. He said the district was applying banked cap of $303,000 and would seek common waivers for enrollment and health‑benefit adjustments; he described the health‑benefit adjustment figure given in the presentation as $1,100,000 and an enrollment increase adjustment of $55,000 in the budget software example.

Programs, grants and capital work: Superintendent Dr. Santoro said the district applied for preschool expansion aid in 2024 but was not awarded funding; the next application cycle was described as opening in August 2025. The district is pursuing in‑district alternatives to costly out‑of‑district special‑education placements, including two new autism programs (elementary and middle school) and an alternative high‑school program intended to keep students in district when feasible and to attract tuition students from other districts. The presentation also described planned facilities work, including a bid for three classrooms in the Lincoln‑Roosevelt basement as part of phased construction for program space; the district indicated it has capital reserve funds (the presenter referenced approximately $4 million in capital reserve) available for such projects.

Solar and other long‑term savings: The presentation said a planned 15‑year solar contract is projected to save about $1.6 million over the contract term; the contract remained under negotiation and the district said it would report details in the facilities process.

Board action and next steps: Board member Carol Wildey moved the finance resolution amending the tentative budget language to include the banked cap language; a board member identified as Eddie seconded the motion. The roll call vote recorded all affirmative votes from members on the call: Botero, Colucci, Galdieri, Hernandez, Hopkins, McGregor, Purcell, Schenick and Milledi. The motion passed. Mondanaro said the resolution language will go to the county for review and the board will vote on the full budget at its April 28 public hearing.

What the administration emphasized: The business administrator and superintendent repeatedly told the board the district was balancing the need to preserve programming and avoid layoffs while using one‑time reserves and banked cap to stabilize the budget. "We're not going to be hiring back those positions rather than cut anyone in good standing," Dr. Santoro said, describing the district's intent to achieve reductions through attrition.

Contacts and transparency: Mondanaro invited members of the public with questions to contact him directly (his email listed on the business office web page) and said the presentation would be posted on the Roxbury website the next morning.

Votes at a glance: The board approved the finance resolution revising the tentative budget language to include banked cap; the motion passed by roll call (listed in the article). The full 2026 budget will be presented for a public hearing and a final vote on April 28, 2025.