Old Bridge budget preview: presenter says "the system of school funding is broken" as adoption moves to March 23

On Wednesday, March 4, at a finance and planning meeting of the Old Bridge Township School District, a presenter outlined the district's tentative 2026–27 budget timeline, warned that "the system of school funding is broken," and said the board will move adoption of the tentative budget to Monday, March 23, with submission to the county offices set for Friday, March 27.

The presenter said the district's current-year tax base was listed as $154,179,064 and that the standard 2% tax-levy increase would add $3,083,581, raising the maximum levy to $157,262,645 for 2026–27. "Revenues drive expenditures," the presenter said, arguing the capped revenue increase cannot keep pace with large cost increases in benefits and contracts.

Health-care and insurance costs were a central focus. The presenter said the district is projecting a 34% increase in medical benefits and cited correspondence indicating premiums could approach a near-40% increase. The presenter also said the district has an allowable adjustment mechanism under state rules for rising healthcare costs and estimated the district's allowable adjustment for medical and prescription costs at about $9,687,500. "So right off the bat ... a 2% increase in one simply cannot keep up with a 40% increase in the other," the presenter said.

The presenter described the structure of the tentative/tenant budget, noting funds 10–13 make up the general operating budget (fund 11 for salaries and benefits, fund 12 for capital, fund 13 for special or adult schools) and that other funds such as fund 20 (special revenue) and fund 40 (debt service) also appear in the resolution. A sample resolution on the agenda will appear as a placeholder with zeroes until state aid figures and allowable adjustments are finalized.

The presenter listed other revenue sources that offset operating costs, including shared-service agreements for summer transportation, a custodial shared-services contract, facility rentals, cell phone tower rental revenue, athletic-field advertising and miscellaneous ancillary revenues. The district said it is exploring higher-yield investment options for capital reserves with NJArm and expects modest increases in interest income.

On contracts and salary pressures, the presenter noted the contracted salary increase negotiated with OBEA for 2026–27 is 3.65 and said rising insurance premiums and prescription costs add further pressure on the operating budget.

As for scheduling, the presenter said an agenda session will be held March 10, the March 17 regular board meeting will instead be a finance and planning executive session to examine expenditures in more detail, and the board will consider adoption of the tentative budget on Monday, March 23. "We'll obviously put it on the website," the presenter said, noting materials and reference slides will be posted for community review.

During a question-and-answer exchange, a committee member asked whether enrollment could be used as an allowable adjustment; the presenter said enrollment is not an allowable adjustment for this year based on current projections, but healthcare costs are. The committee member also asked whether architect findings about potential school closures and redistricting had been considered; the presenter said those conversations are ongoing and expected to continue at the March 17 meeting.

The meeting closed with the presenter returning the discussion to "Doctor Sasso" to wrap up and with a commitment to publish the additional slides and definitions online before the next sessions.