District warns of $1.7 million shortfall under state funding formula; rising benefits cited as driver of levy increase
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Summary
Superintendent Dr. Forte told the Denville Township K-8 School District board that a School Funding Reform Act calculation leaves the district roughly $800,000 short this year and about $1.7 million behind over time, and board members raised alarm about rapidly growing employee-benefit costs that are squeezing the local tax levy.
The Denville Township K-8 School District’s superintendent told the board that the district faces a significant funding gap under the School Funding Reform Act and that rising employee-benefit costs are intensifying pressure on the local tax levy.
"It says right in the document negative $800,000," Superintendent Dr. Forte said, summarizing the district’s current formula adjustment, and adding that "our funding should be 1,700,000 more than it is." He told board members the shortfall contributes to a planned local tax-levy increase.
Board members discussed how the state’s gain/loss protections reshape allocations. "They decided that no district would lose more than 3% and no district would gain more than 6%," Dr. Forte said, describing how the cap limits the district’s ability to receive its full formula share.
Mister Kim urged the board to present the shortfall and cost pressures clearly to stakeholders. "Benefits that are going to our staff is now as high as up to 50¢ for every dollar that we spend on salary," he said, calling the trend "unsustainable" if it continues without state or federal policy changes.
Board members asked staff to produce comparative figures showing the share of payroll spent on benefits this year versus last year, and to clarify how much of the district's spending pool is allocated to personnel versus benefits. Dr. Forte said he would consult staff (Susan and Cindy, named in the meeting) to refine cost estimates and to report back.
Why it matters: The combination of the funding-formula cap and rising health-care and benefits costs reduces the district’s flexibility and can increase the local tax levy, the board said. The superintendent framed the shortfall as part of a broader message the district should share when advocating for changes to the funding formula.
What’s next: Board members directed staff to prepare data on benefits and salary ratios and to include the funding issue as part of forthcoming budget communications and the April 27 final budget presentation and hearing.
