Presenter outlines preliminary School District of the Chathams budget; finance committee recommends 5.99% tax impact

The School District of the Chathams presenter reviewed a preliminary budget for the upcoming school year and said the district faces an approximate $4 million shortfall driven mainly by the shift to full-day kindergarten and large increases in health insurance costs. The finance committee reviewed multiple budget options and settled on a 5.99% annual tax-impact recommendation that the presenter said would help close the gap while reducing staff and program costs.

The presenter told listeners the district has six schools and serves about 3,600 students with 420 certificated staff. Academic highlights cited included 30 AP courses at Chatham High School, roughly 1,157 AP exams taken last year (about 85% of enrolled AP students) with 97% scoring a 3 or higher, 69 students earning the state seal of biliteracy (72 seals total), and strong postsecondary placements for the class of 2025.

On budget specifics, the presenter said the district expects about $1,000,000 less in tuition revenue because of the move to full-day kindergarten and noted the hiring of full-time kindergarten teachers as a direct cost driver. The presenter identified a 17.6% increase in health-care premiums, which was described as an approximately $2,800,000 budget impact, and said those factors contributed to an "approximately $4,000,000" deficit described in the presentation. The presenter also described two adjustments that reduce the levy pressure: an enrollment adjustment of about $1,400,000 and a health-benefit waiver adjustment of about $2,500,000.

The finance committee reviewed four options, as presented: a 3.88% levy increase (Option A) with roughly $3.2 million in cuts and about 42 staff reductions; a 5.99% option (Option B) with about $1.5 million in cuts and 20 staff reductions; a 6.99% option with about $1.1 million in cuts and 14 staff reductions; and a 7.61% option with about $1.0 million in cuts and eight staff reductions. The presenter said the committee "settled on the 5.99% annual tax impact." The presenter provided an example impact for an average home assessed at $1,000,000: about $71 per month in the borough and $51 per month in the township under that option.

On capital projects, the presenter listed planned work and estimates: a CMS brickwork project at $1,300,000 (described as a safety hazard from bricks installed more than 60 years ago), the Washington roof at $450,000, the Milton roof at $1,000,000, two CMS classroom ceiling revisions for HVAC and sound at $120,000, a CHS intercom project at $600,000, and a Lafayette playground at $50,000 (with a PTO contribution credited). The presenter said capital reserves total $5,200,000 with $3,500,000 planned withdrawals for the listed projects, leaving about $1,700,000 available, which the presenter said would not cover the turf fields (estimated at $1.6'$2.4 million). The presenter indicated the district will most likely go to referendum this fall to fund turf fields and potentially other infrastructure and instructional space renovations.

The presenter framed program priorities for the coming year as improving elementary literacy, expanding gifted and talented offerings, implementing Atlas curriculum mapping, continuing curriculum revision and professional development, and adding a new AI course at Chatham High School.

The presenter also made comparative claims about county costs, saying that only three Morris County districts surveyed had lower premium increases than Chatham while others reported higher increases (some up to 32%), and asserted the district has among the lowest per-pupil costs in Morris County. These statements were presented as the speaker's representations and were not independently verified in the presentation.

Next steps described by the presenter include continued meetings with the architect and the head of buildings and grounds to triage projects for a potential referendum and posting budget materials on the district budget website and New Jersey Department of Education user-friendly budgets. The presenter closed by inviting questions and providing contact information.