Wayne schools brace for tighter 2026–27 budget as state aid lags and health costs climb

The Wayne Board of Education received its first public input on the 2026–27 budget on March 5, with the district warning of constrained revenues and large cost pressures while state aid figures remain delayed.

"In short, we are entering the new budget year in a tight fiscal position," Business Administrator Ginny DiMarco told the board during a detailed presentation of revenue assumptions and projected expenses. DiMarco outlined a limited revenue cap tied to the 2% local tax levy rule, which she estimated would allow about $3,500,000 in additional local revenue, and said the district has not yet received state aid numbers needed to finalize the tentative budget.

Why it matters: the gap between fixed costs and available revenue will shape staffing and service decisions. DiMarco said the district aims to avoid staff reductions if possible but that automatic replacement of vacancies is "no longer feasible." She identified major budget drivers: salary increases budgeted above 3%; projected health‑insurance cost growth over 30% for the current and next calendar year; special‑education cost increases of roughly 11%; and higher debt service tied to recent borrowing for preschool expansion.

DiMarco provided specific figures and planned reserve uses. The district's capital reserve balance for 2026–27 stood at 3.8%; the administration plans to withdraw $180,000 for a district‑wide Wi‑Fi upgrade for two high schools and seven elementary schools. The maintenance reserve balance was reported at $4,200,000 with a planned withdrawal of $850,000, including $700,000 earmarked for a rooftop HVAC unit at Randall Carter gym and $150,000 for paging‑system replacements at Lafayette and Wayne Hills. DiMarco also said annual debt payments in the operating budget increased by $800,000 from the prior year because the district used Passaic County Improvement Authority borrowing to cover 60% of the board share for a preschool expansion grant.

Next steps: DiMarco said the tentative budget will be finalized after the district receives state aid figures (she noted the district expects those around March 12) and will be presented more formally at the board's March 19 meeting. The tentative budget is scheduled for submission to the county on March 27, with a public hearing set for the board meeting on May 7, at which residents may comment before final adoption.

Clarifying details reported to the board included projected increases in special‑education placements (DiMarco estimated an increase to 293 total students next year), the district's reliance on lease‑purchase agreements for equipment and vehicles, and the fact that the district's solar agreement sunsets in June, which could affect rooftop panels and roofing needs. DiMarco described some older infrastructure concerns (multiple boilers over 50 years old; temporary heating at Randall Carter gym) and said failed referendums have left some maintenance needs unfunded and potentially emergent.

There was no formal vote on the budget at the March 5 meeting; the board formed a citizen budget advisory committee that will meet March 11 to provide community input as administrators finalize assumptions.

Quote: "This year's budget ... is developed under a tighter fiscal year, delayed state aid information, higher level of uncertainty than we typically experience at this stage," DiMarco said.

What comes next: administrators will update the board after receiving state aid figures, present the tentative budget on March 19, submit to the county March 27, and hold a public hearing on May 7 prior to final adoption.