Pequannock board previews $56.15 million preliminary budget, cites 5.77% tax increase to cover health and salary costs
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Summary
The Pequannock Township School District presented a $56,147,954 preliminary 2026–27 budget that would require a 5.77% school tax increase, driven largely by a roughly 24% gross rise in health‑insurance costs (about $1.7 million) and salary increases; the board scheduled further budget review and a vote on the tentative budget in April.
Pequannock Township — The Pequannock Township Board of Education reviewed a preliminary 2026–27 school district budget totaling $56,147,954 at its March 23 regular meeting, saying the plan would require a 5.77% increase in the school tax levy to cover rising health‑insurance and salary costs.
Dr. Portis and Mr. Gibbs told the board that a near‑term jump in benefits and negotiated salary increases drove much of the need for new revenue. Mr. Gibbs said the district faces a roughly 24% gross increase in health‑insurance costs — a change he said equates to about $1.7 million after employer and employee contributions — and that a 2% tax‑levy increase would not be sufficient to meet those commitments.
The presentation outlined how the district would use reserves and capital funds: $721,948 in capital‑reserve funds is proposed for tennis‑court renovation and replacement roof/HVAC univents in some schools, with partial reimbursement expected from the New Jersey School Development Authority (SDA) for eligible work. Maintenance reserve spending of $959,029 was also identified. Mr. Gibbs said the district recorded a claim from a snow‑plow incident for gym repairs totaling $44,449.19, of which the district will pay a $5,000 deductible.
Why it matters: Board members framed the budget as a difficult exercise of priorities and fiscal tradeoffs. Dr. Portis called it “the most difficult one that we’ve gone through as a team,” noting state funding increases helped but that accelerating costs — health insurance, utilities and liability insurance among them — make sustaining positions and programs challenging.
What’s next: Mr. Gibbs said more budget information will be provided at the April 13 workshop, and Dr. Portis said he would present particulars at the board’s April 27 meeting. The board also discussed using a health‑insurance waiver and other budgeting tools to limit program cuts, and flagged that the district plans to bring a tentative budget before the board for approval in upcoming meetings.
Other business related to operations: Mr. Gibbs reported the district is awaiting the third appraisal on a property at 538 Newark Pike (purchase pending New Jersey Department of Environmental Protection sign‑off) and that the district is coordinating with the SDA about reimbursements for capital work.
Board action: The meeting approved routine consent and committee items by roll call; no formal vote on the tentative budget occurred at the March 23 public session. The board moved into executive session to discuss student and attorney‑client matters after business concluded.
Quotes: “This budget has been the most difficult one that we’ve gone through as a team,” Dr. Portis said during his report, describing the pressure of rising costs and limited revenue growth.
The board will continue budget deliberations at the April 13 workshop and expects a fuller presentation April 27. No final budget adoption took place on March 23.
