Preliminary 2026–27 budget shows sharp cost pressures; board approves consent items

At a virtual meeting, district finance leaders laid out the preliminary 2026–27 budget and warned of mounting cost pressures driven by health‑care and special‑education expenses.

Assistant Superintendent of Finance Dr. Christopher Russo presented the budget framework and timeline, explaining that the district must keep its tax levy within a 2% cap while meeting fixed costs such as salaries, healthcare and transportation. He said the current preliminary deltas over the 2025–26 budget include roughly $6.1 million for health care, $1.75 million for special education and about $360,000 for transportation, producing a total current increase of $12.74 million. "We’re looking at almost a 28% increase in healthcare," Russo said during the presentation.

Superintendent Dr. Adhold framed the district’s challenge succinctly: "Everything costs more and funds cannot cover expenses," she said, summarizing the fiscal pressure facing many districts. Administrators discussed steps already taken—including joining a shared Schools Health Insurance Fund after a period of self‑insurance, continuing energy‑savings projects (EIP 2) that will produce longer‑term operating savings, and monitoring enrollment trends as new housing units come online.

Board members pressed for context on federal and state funding risks. Administrators flagged two broader uncertainties: a near‑term federal budget posture that keeps some funding flat and a phased shift of certain federal Medicaid supports to state budgets that could create multi‑year structural pressures for New Jersey and increase the risk of state aid reductions. The administration said it will track state aid notices (expected after the governor’s budget address) and present options to the board before recommending program changes.

On capital and operations, the administration reviewed EIP 2 projects—solar carports, HVAC and lighting upgrades—and warned that bond repayments for EIP work can begin before all projected energy savings are realized, requiring interim capital contributions. A set of planned facility projects (Town Center roof, High School North auditorium seating, vocational kitchen and HVAC upgrades) was also discussed.

The board approved the meeting’s consent agenda by roll call—including administration, curriculum, finance and personnel items—and recognized seven district employees who are retiring after multi‑decade careers. The board approved prior meeting minutes; two abstentions were recorded on the January 27 minutes. There were no public comments during the meeting’s two comment periods.

Next steps: administrators said the district expects state aid numbers to be released after the governor’s address; the preliminary budget will be submitted to the county superintendent in late March with a public hearing and adoption anticipated in April.