Board reviews tentative 2026–27 budget that would seek $4 million health-care adjustment; officials warn of teacher cuts if funds are denied

Administrators presented a tentative 2026–27 budget at the Montgomery Township Board of Education meeting on March 24, laying out options that include a 2% tax levy increase plus a requested health-care adjustment and use of an expiring bank cap to cover steep health-insurance inflation.

The business presenter said the district expects a 5% increase in the recommended budget after an eleventh-hour 3% cut in state aid (about $248,000). He told the board that the health-care adjustment request would cover roughly $4.0 million in increased health-care costs and that, for an average assessed home of $507,000, the added measures would raise the school portion of taxes from about $130 to about $620 — “so essentially, that’s $490 a year for $4,000,000 worth of funding,” he said.

Why it matters: District officials said the health-care adjustment is meant to avoid deeper program and staffing reductions. Administration presented a suite of potential mitigations but warned that without the $4.0 million the district could face another round of staff reductions on top of $1.4 million in position reductions already built into the tentative budget.

The presentation included the following details: the district’s current enrollment headcount was cited at 4,394 (based on the Oct. 15 count) with a conservative projection of roughly 4,310 for next year; salary and benefits make up about 82.2% of the proposed budget; district staff recommended cutting approximately $1.4 million in positions (about 2% of staff) and trimming supplies and nonessential facilities projects (an across-the-board ~20% reduction in many supply lines).

Board members pressed staff on the health-care calculation and whether employee contributions were already included. The presenter walked through his method: broker-provided projected increases (for example, a 12% increase in medical and a 35% increase in prescription costs), then employee contributions are backed out to arrive at the district obligation; the presenter said the next-year health-care obligation after employee contributions is roughly $24.0 million versus the prior baseline of about $21.0 million, and the difference is the basis of the adjustment request.

Board members also asked about the potential instructional impact. Administration said that cutting $4.0 million beyond the cuts already assumed would likely eliminate roughly 40 teaching positions and would increase class sizes and reduce offerings. Facilities work such as bleacher replacement at Lower Middle School (~$400,000) and some paving/sidewalk projects were described as “wish-list” items that have been deferred to preserve instructional resources.

What’s next: The board adopted the tentative budget for filing and set a public hearing window (March 27–April 28) during which changes can be made before final adoption. The administration also said it will bring its health-insurance broker to a May meeting to present mitigation options.

Speakers quoted or referenced: Business presenter (first introduced as Mr. Italiana) and the superintendent and other administrators who answered board questions.

Ending: The board left the budget as tentatively adopted for the statutorily required public review period; administration will return with additional detail and potential mitigations before a final vote.