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Ridgewood schools propose 3.78% levy increase to cover steep health‑benefit costs
Summary
Superintendent Dr. Schwarz presented a tentative 2026–27 budget that would raise the school tax levy 3.78%—about $500 a year on an average assessed home—to absorb large health‑insurance increases and shrinking state/local revenue; board scheduled a tentative‑budget vote for Monday.
Dr. Schwarz, the district superintendent, said the proposal is a tentative budget for discussion and not a final vote, and that its primary driver is a sharp rise in employee health‑benefit costs. "There is such a demand on this budget to be strong," he told the board, explaining the administration used a conservative projection for next‑year health premiums and a zero‑based budgeting approach.
The administration presented a proposed 3.78% increase in the school portion of the tax levy—comprised of the regular 2% baseline plus a 1.78% allowance for health‑benefit pressures. Dr. Schwarz said the school portion of the increase would add roughly $500 a year to the tax bill for a home assessed at $715,000 (about $41.65 per month).
Mr. Matthews, the business administrator, walked the board through revenue and expense drivers, saying that a combination of higher health premiums, a modest decline in state aid and lower interest income from reserves has created a multi‑million‑dollar gap. The presentation showed health plans that were projected to rise between roughly 22% and 26% in the most recent analysis, and the administration said it budgeted conservatively—including a 10% assumption for benefit changes that broadly align with calendar‑year premium timing.
To contain the levy increase while balancing the budget, administrators proposed several cost‑control measures: changing the district health plan to reduce premium increases, careful re‑examination of multi‑year vendor contracts, modest consolidation of some nonessential positions where retirements occur, and targeted program changes. Dr. Schwarz said the district had already moved out of the state health plan and that the new private plan has produced lower premiums than worst‑case projections.
Board members and the public pressed for specifics: Mr. Matthews provided dental and vision figures and the business office committed to supplying detailed worksheets on how transportation and prior‑year encumbrances affected the baseline. Several board members urged caution against relying on one‑time or accounting items as recurring revenue.
Dr. Schwarz stressed timing for community input: the board will vote on a tentative budget on Monday (which fixes the levy for public notice), with the final hearing scheduled for May 4. He invited residents to submit feedback in the days leading up to the tentative‑budget vote.
Next steps: the board will vote the tentative budget at the next meeting; administrators said they will supply requested revenue/encumbrance detail, route lists for courtesy busing, and follow up on specific public requests.
