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Parsippany‑Troy Hills adopts $198M budget; moves to self‑funded health plan to offset insurance spike
Summary
Superintendent Dr. Chase presented a $198 million final 2026–27 budget relying on an 86% local levy. A broker projected up to a 45% health‑insurance increase ($13.6M); the district plans to self‑fund benefits to reduce the net increase to roughly 30%, avoid program cuts and use stop‑loss insurance (individual threshold $250,000).
The Parsippany‑Troy Hills Township School District presented and advanced a final 2026–27 budget of about $198 million, with administration stressing limited revenue growth and rising costs.
"Our budget comes in at approximately $198 million with about 86% of that coming from the local tax levy," Superintendent Dr. Chase said, noting state aid was about 8% and other sources make up the balance. He told the board a broker had indicated a likely health‑insurance increase of as much as 45%, producing an estimated $13.6 million increase in premium costs and leaving a residual budget gap of roughly $6.2 million after the state's allowable adjustment.
To bridge the gap without cutting instructional programs and activities, the finance committee proposed transitioning to a self‑funded health‑benefits model. "When we move to something called a self‑funded model that actually brings us back down to the 30% without having any cost to programs," Dr. Chase said, adding that employee benefits and providers would not change under the plan; employees would receive a new insurance card and group number.
Dr. McHugh, speaking about administration logistics, said the district will work with a broker to handle billing reconciliation and that an individual stop‑loss policy would limit the district's exposure on high‑cost claims. "If you get above a $250,000 claim, we have insurance like an umbrella policy," Dr. McHugh said.
Why it matters: administrators said the self‑funding approach preserves core instructional supports, extracurricular programs and intervention services that otherwise might be at risk under a full premium pass‑through. The budget also keeps a focus on facilities investments (HVAC and other targeted projects) and reduces reliance on fund balance.
Tax impact and communications: the district presented an illustrative tax impact: for an average assessed home value cited as $315,000, officials stated an estimated increase of about $38 per month on the property tax bill (district figures from the township tax assessor). The administration said it will publish budget materials on the district website and send community communications explaining the change to employees and residents.
Public hearing and next steps: the board opened a budget‑only public hearing and heard questions about the $38/month estimate, whether security hardware would be funded (driver’s‑license readers were not included in this budget), and ideas about corporate sponsorships for programs. The board later advanced the superintendent's bulletin items (including budget actions) by roll call vote with recorded abstentions on specific items.
