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Superintendent lays out budget scenarios and urges caution; 2% levy seen as stabilizing option
Summary
Superintendent presented high‑level 2026–27 budget scenarios (0%, 1%, 2% and 2% plus health‑benefits waiver), warned of recurring cost pressures (health benefits, raises, state‑aid risk) and estimated recurring needs including roughly 17 staff for full‑day kindergarten; administration suggested 2% would produce multi‑year stability.
The Hillsborough Township superintendent delivered an extensive, informational preview of 2026–27 budget choices at the board meeting on Sept. 29, showing four conceptual tax‑levy paths and their multi‑year implications.
The superintendent told the board that last year's levy increase added roughly $26.6 million to the tax levy and that $4.5 million of that was used to restore recurring items and staffing. He cautioned that, looking ahead, the district faces recurring cost pressures including possible state‑aid adjustments and higher health‑benefit costs.
"I have to find about $11 million in our budget to cover all of those costs," the superintendent said when listing potential recurring increases: an estimated $2 million possible state‑aid shortfall, a potential 20% health‑benefits increase (~$5 million), approximately $3 million to fund raises, and other increases.
On program costs, he estimated full‑day kindergarten implementation would require roughly 17 new staff at a recurring cost of about $1.95 million. "Every year moving forward, I'm going to have to find about $12.95 million" to hold programs and staffing levels steady, he said (figures presented as early estimates).
Administration modeled four levy options: 0% (no levy increase), 1% and 2%, plus a 2% option combined with a health‑benefits waiver that allows the district to exceed the 2% cap to cover benefit cost increases. The superintendent said a 0% choice might be manageable for 2026–27 but could leave the district roughly $3.8 million in the hole in 2027–28. By contrast, under a 2% levy the district would begin 2027–28 in a stable position; a 2% plus waiver scenario would create a larger multi‑year surplus.
Jerry (district staff) explained the health‑benefits waiver: if the state health plan increases faster than the 2% cap, the waiver lets the district exceed the cap to cover the difference; choosing the waiver means additional tax impact. The superintendent said he did not see a current need to exercise the waiver for 2026–27 but left the option to board judgment and committee review.
Board members questioned assumptions and asked for more precise numbers from benefits and bargaining units; administration said numbers were conceptual and would be refined in committee. The superintendent reminded the public that the budget season begins in October with committee work and that tentative and final budget presentations will follow in March and April.
What’s next: the administration will continue committee discussions on parameters; a public feedback form will be posted Oct. 1 and budget discussion will be on the Oct. 13 meeting agenda.
