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Auditors warn Wayne Board of Education: rising health-care costs and 2% cap strain budget, referendum likely needed
Summary
Auditors told the Wayne Board of Education on Feb. 5 that while fiscal 2025 showed a roughly $2.9 million increase in fund balance, the district faces structural budget pressures from a 2% tax levy cap, rising health-care costs and deferred capital work; auditors urged stronger internal controls and said a referendum is often necessary to fund major capital projects.
Auditors gave the Wayne Board of Education a mixed report on Feb. 5, saying the district closed fiscal 2025 with an increase in fund balance but faces structural pressures that could require a bond referendum to address long‑deferred capital needs.
"You were up $2,900,000," the auditors reported, noting most of that amount was deposited into the capital reserve. The lead presenter said the district had about $3.8 million in its capital reserve as of June 30, 2025, and that the figures must be considered against the size of the district budget and New Jersey rules on excess surplus.
Why it matters: auditors warned that the state's 2% tax‑levy cap, accelerating salary and benefit increases — described at the meeting as roughly 3%–3.6% for many districts — and growing health‑care costs make it difficult to fund capital and maintenance from operations alone. Auditors said state debt‑service aid typically…
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