Hillside proposes 6% tax-levy increase as administrators outline $4M structural gap and job reductions

HILLSIDE, N.J. — The Hillside Public School District on April 9 released a proposed 2026–27 budget that would raise the district tax levy about 6% and relies on one-time funds to close a structural gap of roughly $4 million.

Business administrator Mr. McNeel told the board and an attentive public that the district’s overall budget — general fund north of $74 million plus special revenues above $7 million — exceeds $82 million and that tax levy and state aid together account for roughly 80% of the district’s revenue. “As a school district, a big portion of our money comes from property taxes,” he said, adding that employee benefits alone account for about $16 million.

The proposal would use the 2% statutory levy cap and a separate waiver to cover rising health-care costs to produce a roughly $1.9 million increase in levy revenue. McNeel estimated that on a $500,000 home the total effect would be about $88 a month, roughly more than $1,000 a year.

Why it matters: McNeel said the district faces a multi-year decline in enrollment that has reduced state aid by about $2.3 million over two years, and noted a potential charter-school appropriation listed on the state aid report that would represent…