South Orange‑Maplewood previews lean 2025–26 budget; tax rate projected to rise to $1.50

Superintendent Bing and the district’s new business administrator, Mr. Moody, told attendees at a South Orange‑Maplewood School District town hall that the preliminary 2025–26 budget projects approximately $170,225,226 in general operating revenue and reflects a 2% increase in the local tax levy.

The presentation, led by Mr. Moody, said the forecast includes an enrollment waiver estimating about 200 new students and a reported 6% increase in state aid that added roughly $619,000. “Our general operating revenue for 25–26 is projected to be…170,225,226,” Mr. Moody said during the webinar.

Why it matters: The district plans to use a combination of revenue, targeted use of reserves and cost‑saving measures to balance the budget while holding staffing levels steady. Administrators said they will draw about $4,450,000 of prior unassigned fund balance in 2025–26 but project returning roughly $9,000,000 to reserves by June 30 because of a January spending freeze, attrition and “breakage” savings.

The presentation laid out key spending and reserve figures the district says drive the tax impact. Audit‑required legal reserve levels were cited at roughly $7,044,000 for fiscal 2024 and $6,893,000 for fiscal 2025. Mr. Moody said the district’s total principal and interest for bond issuances from 2014 through 2024 has totaled roughly $13,000,000 and that debt‑service needs are rising.

Mr. Moody explained that federal and state funding uncertainties factored into conservative budgeting: “We were told only to budget 70% of Title funds,” he said, and added that IDEA funding remained unclear. Administrators estimated direct federal funding exposure of about $2.5 million and warned the bigger risk is the downstream effect on state aid if federal support changes.

Tax impact: Mr. Moody presented a total tax rate projection of $1.50 for 2025–26, up from a prior‑year figure the district described as about $1.43. He said the combined operating and debt impacts amount to roughly a 4.92% increase overall, driven largely by increased debt service needs and recent bond arbitrage obligations.

The district emphasized steps taken to limit personnel reductions. Salaries and benefits represent the largest spending categories — roughly $82 million for salaries and $22 million for benefits — and administrators said the budget avoids staff cuts by optimizing vendor contracts, not filling vacancies where demand is absent and using internal transfers.

Next steps: Administrators said the finance, facilities and technology committee will meet April 16 and the full board will consider the final budget and act as the public hearing in late April, with approval and submission to the county expected thereafter. The town hall recording and slides will be posted on the district website for public review.

The district noted the preliminary numbers remain subject to change and cautioned that some projected savings are contingent on realizing hiring freeze and attrition savings by year‑end.