Mount Olive board previews $136.5M preliminary budget; officials cite state aid cut and 20% health‑care spike

Mount Olive Township School District officials on March 23 presented a preliminary $136.5 million budget for the 2026–27 school year that assumes a roughly $275,000 reduction in state aid and a projected 20% increase in employee health‑care costs, driving a projected tax‑levy increase of about 6.48%.

"Although we were praying for flat state aid, we did receive a reduction of about $275,000," said Miss Schoening, the district business administrator, during a presentation to the Board of Education. She and Superintendent Dr. Bangea said the district expects a health‑care adjustment of about $3.6 million to cover the spike in insurance costs.

Why it matters: The administration told the board that the combination of reduced state aid and higher benefits costs leaves the district weighing program priorities, contract obligations and use of reserves. The presentation showed the capital program will rely on withdrawals from capital reserve of $3,487,000 for roof replacements, elevator work, gym upgrades and other building projects.

Administration overview: Superintendent Dr. Bangea and the business administrator outlined priorities tied to the budget: expanding a fourth team at the middle school to sustain smaller class sizes in seventh grade; adding staff for multilingual learners and another G&T teacher to support program growth; expanding autism‑support classroom capacity; and continuing a multi‑year technology replacement plan including Chromebooks and Promethean displays. The presenters said many personnel and program details will be finalized for the public budget hearing in April.

Revenue and expense drivers: The presentation listed the projected revenue mix and assumptions. State aid was described as nearly 29% of projected revenues, the tax levy roughly 63%, and the balance made up from reserves, fund balance and other sources. The district said it budgeted conservatively for extraordinary special‑education aid — planning $1,000,000 in anticipated extraordinary aid despite applications that may total closer to $4,000,000 — because state reimbursement levels have fallen from about 90% five years ago to nearer 50%.

Tax impact and calendar: The administration estimated the proposed tax rate would increase to about 2.37% and that on the average assessed home ($325,000) the annual impact would be roughly $364, or about $30 a month. The business administrator said the final preliminary budget must be filed with the county by March 27 and the district’s public budget hearing is scheduled for April 27.

Public questions and board response: Residents asked about hiring numbers, cost‑containment for insurance and energy costs. Warren Walsmuller, a district resident, said the projected increase "is going to be a big pill to swallow from the community" and asked whether the district had shopped alternatives for health plans. Miss Schoening replied that the district’s broker is actively soliciting market options but that contractual obligations and plan design limits constrain immediate changes; she added detailed staffing numbers will be shared at the April presentation.

Capital and reserves: The administration said proposed capital projects total $3,487,000 and would be funded by capital reserve withdrawals. Projects listed included multiple rooftop unit replacements, partial roof replacements at Mountain View, a middle‑school auxiliary gym floor replacement, a high‑school gym locker upgrade and elevator replacement.

Votes at a glance: The board approved routine minutes and a consent agenda during the meeting; roll calls showed a mix of yes votes and several abstentions on specified personnel or named items. A later executive‑session resolution affirming findings in a student disciplinary case was also adopted by roll call (see provenance below for specific vote segments).

Next steps: The district will finalize details for the April public budget hearing; county approval is expected after the district submits the preliminary budget by the statutory deadline. The board also scheduled a special meeting in May to begin public discussions about a possible referendum.

Sources: Presentation and Q&A during the Mount Olive Township School District Board of Education meeting, March 23, 2026.