Mountain Lakes board presents tentative 2026–27 budget with 5.9% effective tax-levy increase

The Mountain Lakes Public School District presented its tentative 2026–27 budget at a public hearing Tuesday, with administrators and board leaders pointing to rising health-care costs as the primary factor driving a proposed effective tax-levy increase of 5.9 percent.

"We don't have a full-time business administrator since December, and our interim staff and consultant have worked hard to put this together," Superintendent Dr. Siegel said as he introduced the fiscal plan that the Morris County Office of Education has approved as tentative. Officials said total general-fund revenue is budgeted to increase about 4.8 percent.

Finance Committee Chair Dr. Lauren McIntyre said the district's revenue structure and a state waiver for health-care costs explain how the levy can exceed the 2 percent cap imposed on municipal tax increases. "State law allows a health-care waiver," McIntyre said, "and we are using it partially this year to manage unsustainable increases in benefit costs."

Administrators quantified the pressure from benefits: presenters described salaries and benefits comprising roughly 80 percent of appropriations, with salaries near $29 million, and a roughly 21 percent increase in health-care costs year over year. Financial consultant Mr. Robinson said the district faces about $1.5 million in additional health-insurance costs this year and called the multi-year trend "not sustainable" without broader changes.

Dr. McIntyre used an example to illustrate homeowner impact: on an average assessed home of $1,140,000, the district's effective levy increase would add about $84 per month in property taxes, she said. The board emphasized that the 5.9 percent figure is net of reduced debt service.

The presentation also flagged capital priorities funded from reserves: vestibule security projects at Lake Drive and Briarcliff, a communications overhaul to improve districtwide phone and two-way radio coverage, and classroom reconfiguration plans to support more collaborative learning. Board members said the district intends to preserve staff levels and programs while balancing the operating budget.

The presentation closed with time set aside for public comment; administrators said final decisions about the budget and section counts (for example, whether to maintain certain low class sizes) will be made in coming weeks as enrollment and section counts are finalized.

The public hearing opened the budget for comment; the tentative budget had been approved by the county office and was presented for the board and public review prior to any final board action later in the meeting.