Westwood budget workshop: health-insurance spike and special-education costs drive 11.65% starting tax gap; board approves Berkeley HVAC phase

At a public budget workshop at Westwood Borough Hall, the Westwood Regional Board of Education and district administrators outlined a starting 2026–27 budget that—if left unchanged—would require an 11.65% increase in the tax levy. Administrators said the largest single driver is an estimated 32% increase in employee health benefits, roughly $3.2 million, and noted special-education out-of-district tuition rose about 33.7% (about $1.1 million).

The superintendent, Dr. McQueeney, told trustees the workshop’s purpose was to review the starting budget and the timeline for the preliminary and final budgets, not to adopt personnel actions. “The budget process for a school district actually starts in November,” he said, explaining the timeline and why tonight’s session was informational. He also emphasized uncertainty about state aid: with the governor’s address and the state-aid release pending, the district is planning for flat (0%) aid for now.

Business administrator Mr. Rosato walked the board through vendor offers and claims-history data that drove insurer pricing. He described a negotiation that lowered an initial insurer renewal offer from an early 46% figure to a 32% increase: “...they came back and ended up saying... giving us a, increase of a 32%,” he said, summarizing why medical premiums moved so sharply. Administrators explained that the district’s “experience rating” (claims history) is the key determinant insurers use to set renewal rates, and that the district’s position outside the State Health Benefits Plan constrains its options: returning to the state plan would, on current estimates, raise the district’s budget by roughly $2.5 million.

Officials also described the state’s health-care waiver: the waiver would allow the district to raise the tax levy an additional 5.09% (bringing the no-vote maximum to about 7.09%), but the waiver would not cover the full health-insurance increase—leaving an approximate remaining shortfall of $350,000 in the starting figures. Administrators warned that closing the remainder of the gap could require using reserves, removing requested positions, or making deeper program cuts; they repeatedly said staffing impacts are likely if the board declines to accept significant tax increases.

Special-education costs were a second major pressure. The district reported about 40 students in out-of-district placements and noted tuition spikes for intensive placements: “Those out-of-district tuitions could be anywhere from $75,000 to $150,000 just for tuition and plus the transportation,” the superintendent said in examples of high-cost placements. Administrators presented a possible targeted investment—the start of an autism program—that could keep some students in-district over time but would require start-up staff and space and therefore would increase the operating budget in the near term.

On capital spending, the board clarified the distinction between operating expenditures (covered in the budget binder under tabs 2–3) and capital projects funded from capital reserve. Administrators said the district currently holds roughly $15 million in capital-reserve funds restricted to state-approved capital projects; the board approved a motion to proceed with the Berkeley School Phase 1 HVAC bid and indicated it will request a capital-reserve withdrawal for that project.

Members reviewed other notable appropriation items—technology refreshes for staff devices, a request for an additional school psychologist, and six kindergarten aides included in the starting budget because of demographic projections. Trustees urged careful line-by-line review and assigned follow-up work to the finance committee to develop recommendations that balance student needs, legal obligations, and taxpayer impact.

During the meeting the board carried Motion A under finance and facilities to approve the Berkeley School Phase 1 HVAC/boiler replacement bid; the motion was moved by mister Pertuz and recorded as carried after roll call. The meeting adjourned after the board agreed to continue the budget work in committee and prepare for the preliminary budget presentation in late March.