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Board flags high out-of-district special-education costs; bond refunding nets $1 million in savings
Summary
Board members questioned steep out-of-district tuition costs — staff estimated roughly 130 students placed out-of-district at an estimated $8–10 million annually — and heard that a recent bond refunding produced about $1 million in total savings and an NPV of 6.78%.
At its Oct. 2024 meeting the Toms River Regional School District Board reviewed the purchasing agenda and pressing cost drivers for the district budget, with board members highlighting steep special-education placement costs.
Board member Mrs. Lamb asked about multiple purchasing-agenda line items marked 'draw down.' A staff member explained: "we will encumber something that means we create a purchase order ... draw down it usually isn't one payment we might be making several payments over the year." (Staff member)
On private- and public-school tuition for out-of-district placements, staff member Joy said the district currently has about 130 students placed out of district (the prior year figure was cited at about 160) and offered a rough cost estimate: "I would say maybe eight million right about 8 to 10 million for 130 kids" (Joy). The discussion underscored board concerns that high special-education tuition drives much of the district’s discretionary pressure.
Separately the board heard a financial update on an authorized bond refunding. The district reported the sale occurred Oct. 2 with a closing scheduled for Oct. 15; final results beat projections. According to the presenter, the refunding produced about $1 million in total gross savings (around $71,000 annually) and a net present value savings of approximately 6.78%.
The purchasing agenda also included small sponsorship and rental agreements (example: two sponsorships producing $7,600 for the month, $6,784 projected annually). No board member raised formal objections to the sponsorships list, but members requested an updated rental-fee schedule to confirm current rates.
Next steps the board discussed included staff returning with detailed school-by-school special-education placement counts and a more granular budgetary impact analysis to inform upcoming budget discussions.
