Chatham Board advances preliminary 2025–26 budget and moves toward free full-day kindergarten

The School District of the Chathams Board of Education on March 17 approved a preliminary 2025–26 budget and addendum, voting 9-0 to move the plan forward that would fund free full-day kindergarten for all district kindergartners and increase the tax levy by 4.76%.

Superintendent Dr. Lasusa and the finance committee presented the budget, saying the district’s revenues have risen in part because of modest state aid increases tied to a law referred to in the presentation as "S2," and because the state granted an enrollment adjustment of $232,000 that allows the district to exceed the normal 2% tax levy cap.

Board members said rising costs, notably a 13.1% increase in health benefits premiums and negotiated salary increases in bargaining agreements, pushed the committee to recommend the levy increase. The presentation also noted a carry-forward “banked cap” of about $930,000 from the prior year that the board did not use and is available going forward.

Most of the proposal includes no new staff hires despite rising elementary enrollment. The district said it will fund the building reconfiguration needed to offer universal full-day kindergarten largely from capital reserve rather than new staffing. For the current year the district had offered full-day kindergarten on a tuition basis at $5,000 per student and budgeted roughly $1,000,000 in tuition revenue; the board’s proposal would remove that tuition charge for the coming year.

Officials laid out homeowner impacts using local assessed values: the presentation estimated an annual tax increase of roughly $433 for the average borough home (assessed about $995,000) and $461 for the average township home (assessed about $863,000). The district reported a total tax levy last year of just under $75,000,000 and current enrollment just under 3,600 students.

Finance and facilities staff also reviewed capital needs and how the district funds them. The presentation said the district routinely deposits excess year‑end funds into capital reserve (staff cited deposits of $2 million to $4 million in recent years) to pay for roof and HVAC projects. The administration expects to receive about 40% reimbursement from the state’s SDA program for two roof projects and HVAC replacements scheduled this summer; the district typically outlays funds and is reimbursed after state approval.

Board and staff said uncertainties remain: federal IDEA funding (about $1 million annually for special education) could change, and state funding posture could shift after the current governor’s term. The board also noted new state proposals around universal early childhood programs that create both potential revenue and programmatic pathways — officials said districts that offer free full-day kindergarten may be better positioned to receive future preschool aid.

Votes at the meeting covered the preliminary budget and related items. The board voted 9-0 to approve agenda items B1–B19 and the addendum (B20), which included the preliminary 2025–26 budget presentation and resolutions to fund some capital work from capital reserve.

The board’s finance committee said it considers the proposed levy increase responsible given local cost pressures and the district’s goal of offering universal full‑day kindergarten without tuition.

Other details from the presentation: the district reported that transportation CPI used by vendors is 3.57; that elementary cohorts are beginning to increase after several years of decline; that the district is proposing modest increases to activity and subscription bus fees; and that the administration did not propose additional full‑time staff for 2025–26.