Montgomery Township School Board adopts 2026–27 budget after contentious public hearing, cites 17% health‑care rise and 2.9% enrollment dip

The Montgomery Township Board of Education voted to adopt its 2026–27 budget on April 28 after an extended public hearing in which administrators defended preserving programming while trimming targeted positions and facility projects.

Business administrator Andrew Taliano told the board and the public that fixed costs — most notably a roughly 17% renewal of employee health benefits, as well as higher energy and contractual salary costs — drove the district’s spending projections. He said the budget as presented “brings us to the figure of $97.4 million, which is a net impact of a 6.37% local tax increase.” The administration said it prioritized maintaining extracurricular and curricular offerings and avoided adding activity fees for families.

Why it matters: The budget preserves a broad menu of AP, STEM and arts programs that district leaders said distinguish Montgomery schools, while requiring $2.4 million in deferred facility or wish‑list projects and reductions in salary lines (administration cited roughly $1.4 million in position‑control adjustments). Administrators said enrollment is expected to decline about 2.9% for the coming year, forcing tougher tradeoffs between staffing, class offerings and capital maintenance.

Administration briefing and board questions: Taliano led a detailed briefing on budget drivers, financial benchmarks and two state regular‑operating grants supporting HVAC upgrades at the middle and high schools (projects the administration said will be funded 60% locally, 40% by the state). He described efforts with the district’s broker to limit benefit cost increases and outlined a preliminary plan — still subject to legal review and collective‑bargaining steps — to change prescription delivery and pursue programs that could lower drug costs.

“Some of the private plans, they don’t put a quote,” broker Jim Finn of Brown & Brown said in a later presentation on regional health‑care markets, adding that the state health plan has produced far larger increases for some districts and that the district’s 17% renewal was within regional norms. Finn also described an emerging neighborhood of solutions — including a GLP‑1 direct program the broker said could materially reduce prescription spend for districts that pursue it — but he warned such changes typically require bargaining‑unit agreement and legal review.

Public comment and special‑education concerns: About two dozen members of the public spoke during the budget hearing. Several residents pressed the board to find deeper cost containment, and one petition delivered at the meeting proposed $14.6 million in savings through a combination of support‑service reductions and returning 30 out‑of‑district placements.

Speakers opposing the petition cautioned that proposed cuts to special education and related supports could violate federal and state rules and generate litigation or repayment obligations. A statement read on behalf of a parent, Jessica Kogan, said that the petition’s recommended cuts “are not a cost containment plan. That is a layoff plan aimed at the most legally protected students,” and urged the board to reject amendments that would target special‑education investments.

Vote and outcome: After questions and discussion, the board closed the public hearing and held a roll‑call motion to adopt the budget and related action items, including the two HVAC operating grants. The motion passed by majority vote and the district announced it would post the adopted budget to the district website as required. Administration said next steps include vendor negotiations, legal review for any health‑care changes that require bargaining‑unit approval, and scheduling follow‑ups with board members who requested more detailed staffing breakdowns.

What’s next: Administration offered to provide board members with additional breakdowns in office meetings and through the position‑control roster; administrators also invited board members to meet with the district auditor or business office to review health‑care invoices and bill lists. The administration said it expects to continue work with the broker on prescription and rebate strategies ahead of the 2027–28 budget cycle.

The board adjourned after routine superintendent and committee reports, and the district said the adopted budget will be posted to its website per state rules.