Ocean Township School District officials present budget scenarios that could raise levy up to about 8.17%
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Summary
Administrators told the board a roughly $7.8 million shortfall for the 2027 budget is driven by large health‑care premium increases and flat state aid; using a one‑time health‑care waiver plus a 2% cap could raise the tax levy as high as about 8.17% and still leave estimated staff‑position impacts. Board members expressed differing views on taking the full waiver to avoid deeper program cuts.
School business administrator Mister Hastings told the Township of Ocean School District Board of Education on March 10 that the district faces a projected 2027 budget shortfall of roughly $7.8 million, driven primarily by sustained health‑care premium increases and flat state aid.
Hastings said the budget before the board shows roughly $89.8 million in projected revenue — built on a 2% tax levy increase and level state aid — versus about $95.6 million in budget requests, producing the shortfall. He told the board the district has seen health‑care premium increases of about 15–30% in recent years and is expecting another increase of roughly 30% in January 2027, which is a primary driver of the gap.
"With a 2% levy and flat aid, we're looking at about a $7,800,000 shortfall," Hastings said. He outlined options the district examined, including using the state health‑care waiver to recover increases above 2% in the prior year, which the district estimates could add about $4.7 million in one‑time revenue. Using the full waiver plus the 2% cap would raise the levy to about 8.1% (the administration reported an illustrative 8.17% figure), which administration said would reduce the shortfall to roughly $1 million under the assumptions presented.
Hastings gave concrete examples of taxpayer impact using the township's average home value (the township-provided example was about $1,008,000): "Looking at an 8% increase, you're looking at about $418 a year, about $35 a month," he said, adding the amounts fall with lower levy scenarios.
Administration also presented estimated staffing impacts under different scenarios, noting these are approximate: at an 8% levy the district would still face an estimated loss of about 11 positions (based on an approximate $100,000 total compensation per position); at 7% roughly 17–19 positions; and at 6% about 26 positions. Hastings cautioned these are estimates and that the district is also evaluating program reductions, reallocation of existing staff, and grant opportunities before finalizing recommendations.
Superintendent (reporting) emphasized that administration does not want to eliminate student programming. She told the board that some items — for example, multilingual before‑school tutoring — were shifted to grant funding so the program remains, and that the administration will look for similar grant or after‑school options where feasible.
Board discussion was divided. Some members said they would support using the full health‑care waiver and the 2% cap to minimize cuts and preserve programs; others urged a multi‑year look at structural changes, warned that one‑time revenues do not solve underlying systemic problems, and advocated pursuing shared services, benefit shopping and other permanent cost reductions.
Hastings also walked the board through the budget calendar: the tentative budget must be adopted by March 27 (administration said the board's March meeting schedule is set to accommodate required actions), the county reviews a draft, and the final budget must be presented and adopted between April 24 and May 7 (the board has a meeting scheduled for April 28 within that window). He noted a March 1 change in law that allows required legal notices to be published on the district website as an electronic posting instead of being printed in local newspapers.
What happens next: administration asked the board for direction on the levy appetite so staff can prepare the tentative budget for adoption and public presentation during the required windows. Final decisions on levy amount, program reductions and personnel actions remain pending.
