Fair Lawn board preliminarily adopts 2026–27 budget after administrators point to 39% health‑care spike

The Fair Lawn Board of Education on March 26 preliminarily approved the district's 2026–27 budget, voting 6–3 to move a proposed tax levy increase forward for final action April 30.

Administrators told the board the principal cost driver is a 39% renewal on the district's private health plan with Horizon, which business administrator Jorge Cruz said "equates to $5.3 million" for the coming year. Cruz said broker negotiations reduced an initial 47% proposal to the current 39% renewal and that the district's total premium cost under the private plan is about $24 million, compared with an estimated $26.5 million if it had returned to the state plan.

District leaders said they have packaged multiple offsets to limit the tax impact. Dr. Dianio, the superintendent, said the district identified $556,000 in operational efficiencies (leasing technology rather than paying upfront, reduced ink/toner spending and other line‑item savings), about $1 million of staffing savings from attrition and reorganizations, and $2.345 million of health‑benefit savings relative to prior arrangements, for about $3.316 million in total reductions before bridging the remaining deficit. Mrs. DeFranco, who presented on student services and special education, said the district was able to add two ICR teachers, one ERRI teacher and a paraprofessional at the high school "with zero budget impact," funded by $415,000 in offsets.

Administrators framed the levy math two ways: a proposed tax levy increase of 6.95% (which uses part of the district's bank cap and the healthcare adjustment) but an estimated average homeowner impact of 3.27%. Cruz used an example of a home assessed near the sample value to show the monthly difference, saying the effect to the average homeowner is roughly $21.26 per month. He also explained bank‑cap mechanics and that prior years' use of the bank cap means the district has less room to rely on it in future years.

Board members and public commenters pressed administration on long‑term strategies to control recurring healthcare costs, whether capital work had been included in the long‑range facilities plan, and the distribution of supplies and utility lines across schools. Several board members stressed that most of the district's budget is people — "74% is salary and benefits," Cruz said — and warned that deeper reductions would mean cutting positions or increasing class sizes.

During public comment, residents voiced a range of positions: some urged rejection of the proposed increase for affordability reasons; others praised administrators for protecting staff and classrooms and underscored the need to maintain aging infrastructure. A student speaker urged clearer, districtwide approaches to bullying prevention and consistent follow‑up on reports.

The board approved the preliminary budget in roll call with six votes in favor and three opposed; the administration said the district will post full budget details on its website and return for final adoption on April 30. The vote included approval of a $2 million capital‑reserve transfer for planned maintenance and projects, which administrators said helps avoid a referendum.

"We are protecting every single classroom," Dr. Dianio said during the presentation, and noted the administration and board had worked through multiple committees to reach the proposal. "We didn't cut a teaching position. We didn't increase class size," he added. Cruz summarized the choice facing the board: with a large, one‑time jump in benefits costs, the alternatives are to raise the levy, cut staff and programs, or accept growing structural pressure on future budgets.

Next steps: the board must submit the preliminary budget to the county by the statutory deadline; administrators said the full budget documents will be posted online and the board will vote on final adoption April 30.