Freehold Township board reviews draft $89 million budget citing health care and energy cost spikes

Freehold Township School District officials reviewed a draft $89 million 2025-26 budget at the board's regular meeting, with School Business Administrator Robert Devita telling trustees that rising health-care and energy costs have driven the district's projected tax impact.

Devita said the district currently projects total budget appropriations near $89,000,000 for 2025-26 and a fund balance of about $1.9 million. He said a projected 10% increase in health-care costs and large increases in energy — roughly 25% for electricity and about 9% for natural gas — have consumed much of the district's allowable 2% tax levy increase and pushed the draft levy higher.

The draft shows the general fund and debt-service fund together producing a year-over-year levy change Devita described as "about a 4.3% increase" for the district portion; he said the calculation also reflects a projected increase in assessed value in the tax base that reduces the per-household share. Devita cautioned that some figures remain estimates and that the state aid numbers had not been finalized at the time of the presentation.

Why it matters: The board must adopt a tentative budget before it publishes final budget figures to the public. The drivers Devita identified ' higher health-care premiums, federal grant uncertainty and elevated energy prices ' determine whether the board must trim programs, draw further on reserves or ask voters for higher local support in later years.

The administration outlined several program and capital priorities that are included in the draft and that staff say can be funded largely by repurposing existing dollars rather than new revenues. Notable items in the draft include:

- Special education staffing: the draft includes a second teacher for the district's Emotion Regulation Impairment (ERI) program (one primary K-2 class and one intermediate 3-5 class) and an additional 1:1 teacher assistant tied to individual IEPs. The district continues to budget a small contingency to cover three potential out-of-district placements.

- Curriculum and assessment: year-two costs for the i-Ready benchmark and personalized learning platform continue in the budget; the district will extend foundations (a phonics program) into grade 2 and roll out foundations training in preschool. The administration also plans expanded access to decodable readers for K-2 classrooms.

- Transportation and security technology: the draft includes funds to lease three replacement buses and to purchase a student ID swipe system for buses that will allow students to swipe onto and off buses and give offices real-time ridership information. Devita described this as a means to reduce calls to school offices about which bus a child boarded.

- Facilities and equipment: the budget keeps a replacement cycle for fleet vehicles and custodial equipment, and includes capital-reserve-funded projects already underway (electrical upgrades, rooftop unit replacements) tied to previously approved work.

- Operational efficiencies: the administration proposed centralizing printing through a managed print solution (PaperCut) intended to replace classroom desktop printers and consolidate jobs at networked copiers; the vendor transition is expected to be budget-neutral once older devices are removed.

Grants and reserves: Devita said the district expects federal formula grants (IDEA and Title programs) to be budgeted conservatively at 75% of current-year awards because of uncertainty at the state allocation level. He also described the district's extraordinary aid for high-cost special education placements and said the district has historically received about $1.2 million but that the state's share has fluctuated.

Next steps: The board was told there will be a tentative-budget presentation at a follow-up meeting and the board will need to set a tax levy within state limits. Devita said final state aid figures were expected within days and that the district would update the figures when they arrive. The board did not take a formal vote on the budget at this meeting; a tentative budget adoption is scheduled on the board calendar in March.

Context and speakers: The presentation was given by Robert Devita, School Business Administrator and Board Secretary, with questions from board members and discussion of referendum planning and capital timing. Devita noted the district continues to be "revenue driven" under state rules that limit the tax levy increase, and that program additions in the draft were largely funded by repurposing existing dollars rather than net new revenue.

Looking ahead: Devita reminded trustees that final state aid numbers and federal grant allocations could alter the draft and that the board will consider the tentative budget at its next public meeting.