Denville board approves tentative 2026–27 budget after presentation citing steep health‑benefit and salary increases

The Denville Township K‑8 School District board on March 2026 approved a tentative $47,727,910 budget for the 2026–27 school year after a presentation by Superintendent Dr. Forte that highlighted ballooning salary and benefits costs and a shortfall in state funding.

Dr. Forte told the board that salaries and benefits now take “over 80% of our budget” and that health benefits alone are “approximately 25% of our budget now.” He said labor costs are rising (salary and benefits line items increased by roughly $2.6 million in the draft) and listed other budget increases including transportation ($182,000), technology and cybersecurity ($173,000) and professional development ($33,000).

The proposed levy is a 7.28% increase on the calendar tax rate, which the administration estimated would amount to about $348 more per taxpayer. Dr. Forte and the business administrator explained the gap between the statutory 2% cap and the actual levy: the budget includes a health‑benefit waiver and a separate voter‑approved question. “The 2% tax levy is 763,000. The health benefits adjustment is 1,900,000. The question is 700,000, and we also got an increase in state aid of 216,000,” Dr. Forte said while outlining revenue sources.

State aid shortfall and extraordinary aid

Board members pressed the administration on state funding after Dr. Forte said the district has been “shorted” under the school funding formulas tied to the School Funding Reform Act of 2008 (S‑2). He said the district showed roughly $9.26 million in one year and noted more recent years where the district received less than expected, estimating a total shortfall of about $1.8 million over two years and larger cumulative shortfalls over several years.

“A lot of this money should be coming from another source,” Dr. Forte said, urging board advocacy in Trenton to secure the funding the administration says the district is entitled to under the state formula.

Board members discussed options, including coalition advocacy and the theoretical possibility of legal action; one board member asked whether districts had pursued lawsuits to enforce the statutory formula. Board members warned of political complications for statewide coalitions and said targeted district advocacy may be more viable.

Health benefits waiver and carrier change

The administration described a health‑benefit waiver the board approved to exceed the 2% cap to cover benefit cost increases. The business administrator said the district’s new carrier, New Horizon, is expected to produce conservative, second‑half savings of about $600,000 on roughly $12 million in benefits if state rates do not rise further; the board was warned the savings are not guaranteed if the state increases benefit costs above current projections.

Capital and reserves

Dr. Forte outlined capital and maintenance work that the district expects to fund from reserves, including boiler replacements at Valley View and Riverview, window replacements and sidewalk repairs, and electrical work tied to Riverview Annex renovations. The finance motion included a $300,000 withdrawal from the emergency reserve to help cover increased health‑benefit premiums (pending executive county superintendent approval) and a separate withdrawal from capital reserves for listed schoolwide projects.

Referendum question and other finance items

The tentative budget incorporates a referendum question previously approved by voters on Nov. 4, 2025, for $700,250 to renovate the second floor of Riverview Annex and related staffing and maintenance; the administration said that approved question represents a permanent increase in the tax levy of 1.83%. The finance motion also authorized the business administrator to submit the tentative budget to the executive county superintendent under NJ statutes and scheduled a public hearing on the budget for April 27, 2026 at 7:30 p.m. at 1 Saint Mary's Place.

Board approvals and next steps

The board voted to approve the tentative budget and associated finance resolutions, including contract agreements (YMCA, Kid Therapy LLC for occupational therapy services), out‑of‑district placements per IEPs, and donations of auditorium LED spotlights. Several other consent and instructional items (field trips, workshop expenses, surplus technology disposal) were approved by roll call during the meeting.

What comes next

The board will advertise the tentative budget in accordance with New Jersey Department of Education procedures and hold the public hearing on April 27. Board members said they will pursue advocacy in Trenton to press for fuller state funding for S‑2 and to seek solutions for the rising cost of health benefits that are driving local levy increases.

Quotes in context

• “Salaries and benefits is taking up over 80% of our budget,” Dr. Forte said when explaining principal cost drivers.

• “The health benefits adjustment is $1,953,228,” the agenda reads; the administration characterized the waiver and reserve withdrawals as measures to bridge the gap while urging state action.

• On local impact: “That’s a 7.28% tax levy increase and a $348 increase to the taxpayer,” Dr. Forte said when summarizing the projected calendar‑year impact.

The meeting closed after routine personnel, governance, operations and instruction items were approved. No members of the public addressed the board during the two public‑comment openings.