Saddle River leaders warn enrollment and health‑plan costs are straining the budget; tax increase cited

Saddle River School District officials on Tuesday told the board that rapid enrollment growth, rising tuition for grades 6–12 and higher health‑benefit costs are the primary drivers of pressure on the 2026–27 budget.

The district presentation said Wandell School’s enrollment rose to 142 students from about 115 last year — a 23.5% increase — and district enrollment grew from roughly 300 to 353, about 17.7% district‑wide. Officials said nearby housing projects, including a 275‑unit Avalon Bay development and a 100‑unit Toll Brothers townhome project, are expected to sustain growth in coming years and add fiscal demand.

"Every student that we have at grades 6 through 12 is about $20,000," said Mr. O'Harn, the district business officer, identifying tuition for send‑receive arrangements as the largest single cost and noting tuition accounts for roughly 28% of the budget. He added that special‑education placements can be substantially higher in cost, sometimes approaching six figures in individual cases.

Mr. O'Harn also warned that the State Health Benefits Plan has recently increased by about 31%, a spike that outpaced the district’s projected 2% cap on increases and is a central reason officials said they need additional budgetary flexibility.

The presentation listed specific budget tools the district is using to bridge the gap beyond the 2% cap: application of about $1.5 million in prior‑year surplus, a one‑time state enrollment adjustment (not guaranteed in future years), and use of a health‑benefit waiver that allows a larger cap for extraordinary costs. The presentation also stated a year‑over‑year tax increase of 6.1%, estimated as a $465 annual increase for an average assessed home of $1.9 million.

Board materials and speakers emphasized shared services and other savings measures — such as town contracts for plowing and lawn care, and shared business‑office and food services with Ramsey — as part of the district’s strategy to limit costs.

Why this matters: The district is a small preK–5 system that sends students to neighboring districts for grades 6–12; tuition and special‑education placements make up a large and volatile portion of the budget. Officials said the combination of unpredictable special‑education placements, steady tuition obligations, and sharp health‑plan increases may force reliance on one‑time reserves or a public budget vote in future years.

Next steps: The board posted the presentation for public access and conducted a public hearing on the budget; no speakers from the public commented during the allotted period. Board action later in the meeting approved routine agenda items; the board then voted to enter executive session.