Freehold Township School District presents final budget; estimates $270 average homeowner increase tied to referendum debt service

Robert Davida, the district's school business administrator and board secretary, presented the Freehold Township School District's final budget for 2026'27, saying the document reflects changes the county asked the district to report for reserve interest lines and the district's main cost pressures.

"This is our final budget presentation for the year," Davida said, describing the county's request to show higher interest figures for capital, maintenance and emergency reserves and stressing those figures "do not impact the budget overall in terms of we can't spend more money." He said the line-item adjustments increase the district's revenue picture by roughly $69,000.

Why it matters: the budget presentation laid out the drivers that will affect the tax levy and student services. Davida said health-care costs are the largest single cost driver (the district is projecting roughly a 20% increase for medical and prescription coverage) and that out-of-district special-education placements and related support costs have also risen.

Key facts and numbers: Davida told the board tax levies account for roughly 88% of the district's total revenue. The presentation shows a $5.2 million increase in the tax levy tied to debt service connected with a March 2025 referendum; when combined with the general-fund levy the district estimates the average home with $711,000 in assessed value would see about a $270 increase in the district portion of property taxes, a roughly 6.7% change overall for the district's tax levy portion. Fund balance is projected to drop (Davida reported fund balance down roughly $362,000 or 19% year over year). Debt-service aid from the state was reported to increase substantially, reducing the net local burden.

The board and members asked technical questions. One board member asked for clarification on the reserve interest entries and whether those funds could be used for staff or textbooks. Davida explained these are balance-sheet items earmarked for specific reserve uses and "it's not money that you could take and say, alright... go hire another staff member."

Budget tradeoffs and cuts: Davida reviewed prior recommended reductions the district considered to close a roughly $1.5 million gap, including staffing reductions (an instructional coach; a custodial supervisor; several teachers and TAs) and nonmandated program cuts (Chromebooks, staff professional development, curriculum writing). He also listed anticipated increases: benefits (28.4% of budget), support services (14.3%), facilities (9.1%), transportation (4.9%) and a modest capital outlay line (0.4%).

Next steps: the finance committee included "adopt final budget, 26 to 27 as listed" on the agenda and moved the slate of finance items for board consideration. The presentation and related discussion were completed in open session; the agenda included a motion to adopt the budget as part of the evening's consent/roll-call business.

What remains uncertain: the presentation references state guidance for budgeting certain grant lines (ESSA/title allocations) and anticipates some state aid and grant receipts, but those are marked per-state guidance and subject to final state allocations. Davida also noted final insurance and energy premium numbers will be confirmed in May and June.