Ocean Township administrators say tentative 2026 budget still $1 million short; mayoral cap limits options

The Township of Ocean School District’s School Business Administrator, Jeff Hastings, told the Board of Education that updated state aid and internal expense reductions have narrowed an earlier deficit but the district still faces about $1 million in required savings before the April 29 public hearing to adopt the final 2026 budget.

Hastings said the district’s previously discussed gap of roughly $1.7 million was reduced after state aid adjustments of $213,617, a review of supply-line forecasts that freed about $131,000 and the net effect of recent retirements and resignations totaling roughly $385,651. He said those changes reduced the shortfall but the district still must identify about $1 million more in savings to stay within the 2.69% tax levy cap the district can legally adopt for 2026.

Hastings described proposed and postponed capital work: the district will move forward with replacement of select exterior classroom doors but is postponing or denying several larger requests, including a heat curtain at the high school, window replacements, stadium turf and other substantial projects. On technology, he said the district will add some security cameras but will not fund all requested cameras and is postponing large-room projectors, certain radios and large office monitors.

On personnel, Hastings said administrators are assessing recent retirements and resignations to determine whether positions must be refilled; that strategy produced tens of thousands of dollars in savings to date. He said cuts under consideration could come from a range of job categories, including support staff, administration and, where unavoidable, instructional positions—steps that could affect class sizes and program offerings depending on final decisions.

Board members asked for more detail about how personnel adjustments would affect day-to-day operations. A board member noted the district’s rising special education and multilingual-learner populations when cautioning against equating staff reductions with declining need; Hastings said the district is trying to balance legal limits on the tax levy with obligations to those student groups.

Hastings said the tentative budget — a draft submitted to the county for review — will be revised as administrators identify further reductions. He said the district is using all available tools now: the 2% base tax levy increase, a banked-cap option and a health-care waiver that allows a higher levy given higher-than-expected costs. The presentation included an example of homeowner impact: on an average assessed home of $931,000 Hastings said the school portion of the tax would rise by about $173 annually (about $14.43 per month) under the current levy proposal.

The board directed administration to continue reviewing the impending cuts and to return with updated options before the April 29 public hearing and final adoption.

Votes at a glance - Approval of minutes (7.1 and 7.2): Motion carried (roll call recorded); one abstention recorded in the transcript. Motion moved by Board member Dalton. - Personnel items (8.1–8.9): Approved by roll call; one abstention recorded in the transcript. - Financial items (9.1–9.8): Tentative budget actions and related resolutions were approved to advance the tentative budget to county review. - Safety grant application (9.9): Approved (authorization to apply for NJ Schools Insurance Group safety funds). - Instructional items/field trips (10.1–10.2): Approved. - Memorandum of Agreement with Bus Drivers Association (11.1): Approved by roll call; one board member changed vote to abstain during the roll call. - Policy second reading (12.1): Approved by roll call. - Policy first reading items (12.2): Introduced for first reading (no final action at this meeting).

Administrators emphasized that the 2.69% levy cap is a legal ceiling, not a spending target, and that continued reductions will be necessary if the district cannot identify $1 million in additional savings prior to the final adoption date.