Audit shows balanced reserves but budget pressures could push tax levy higher, Haddonfield officials say
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Summary
The district’s audit through June 30, 2025 shows reserves and encumbrances intact but administrators warned declining aid and rising costs could require cuts or tax increases; staff outlined scenarios for 3%, 5% and the legal maximum levy increases and noted ESIP rebates could offset some near-term pressure.
Haddonfield, N.J. — At the Jan. 9 board meeting, the district’s auditor and finance staff presented the 2024–25 financial summary and warned trustees about tight budget pressures for the coming year.
The auditor reported year-end figures for 6/30/2025 showing roughly $46 million in revenue and comparable expenditures, producing a modest net loss of operations (presented as about $158,002.39). The district reported a fund balance composed of reserves for excess surplus, encumbrances, capital and maintenance reserves and an unassigned fund balance described as the district’s "free balance." The auditor said encumbrances and reserves explain the higher reserve totals compared with the prior year.
Why it matters: administrators said declining extraordinary state aid and rising costs (special education staffing, energy and transportation) create a scenario in which keeping all current programs would require an estimated tax levy increase of roughly 8.1% — above the district’s legal maximum without additional approvals. Staff presented more moderate scenarios for reductions: 3% would require finding about $2.1 million in savings or revenue, 5% roughly $1.3 million, and reaching the 6.45% statutory cap would require about $700,000 in adjustments.
Finance staff (Mike) said rebates from the district’s ESIP energy-efficiency work are expected to be recognized before July 1 and could be used to bolster fund balance in the short term; ESIP payments are scheduled in future years and the net effect should reduce annual costs after rebate recognition. "I will be capturing that revenue this year," Mike said of anticipated utility rebates.
Board members asked for clarity on what would be at stake under different reduction scenarios; staff pointed to potential impacts on instructional staff, class sizes and electives if cuts are needed. Administrators also identified potential revenue or cost-saving opportunities such as revised facility fees, reviewing activity fees, and carefully staging construction and bid strategies to offset some overruns.
Provenance: Audit and budget scenario presentation and Q&A (audit intro SEG 479; budget scenarios and ESIP discussion SEG 1540–SEG 1736).