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Mountain Lakes board approves tentative $49.6 million 2026–27 budget amid sharp health‑care cost increases
Summary
The Mountain Lakes Board of Education approved a tentative $49.6 million budget for 2026–27, citing a roughly 40% two‑year increase in employee benefit costs and a partial use of the state health‑care adjustment waiver to avoid larger tax increases. Administrators said the plan preserves staff and programs while prioritizing safety and capital projects.
The Mountain Lakes Board of Education on March 16 approved a tentative $49,600,000 budget for the 2026–27 school year after administrators warned of rapidly rising employee benefit costs.
Finance committee chair Dr. McIntyre told the board the district faces “a substantial increase in employee benefits,” identifying benefits at about $9.7 million compared with roughly $6.8 million two years earlier — an increase the administration characterized as about 40 percent over two cycles. "The 2026–27 budget is fully balanced at $49,600,000," Dr. McIntyre said during the presentation.
The nut graf: the rise in health‑care and benefit costs is the chief driver of the budget change and shaped the board’s decision‑making. Administrators said they used some state flexibility — a health‑care adjustment waiver that can be up to 8 percent — but did not absorb the full permitted adjustment because of concerns about burdening taxpayers.
Consultant Steve Robinson framed the revenue side, saying the general fund tax levy remains the district’s largest revenue source and that tuition revenue from the Lake Drive program offsets a portion of special‑education costs. Robinson noted the district projects tuition enrollment from Lake Drive at about 115 students next year and said the district experienced a modest reduction in state aid of approximately $40,000.
Board and administration members emphasized the district’s intent to avoid staff layoffs. "We are not adding positions except in safety and security," the superintendent said, describing one proposed additional officer for next year and capital work funded from reserves for phone‑system and vestibule upgrades.
Board members asked for clarity on several items that were part of the grouped finance motions: withdrawals from capital and maintenance reserves, adjustments to tuition‑rate accounting, and the advertised hearing date for the tentative budget. The motions were presented together, and the board adopted the listed finance motions by roll call. One agenda item later in the meeting (item 24) recorded an abstention by Miss McVay, per the roll call record.
Administrators warned that if benefit costs continue to rise in future cycles, the district could face structural budget stress despite current reserves. They said continued advocacy for state‑level funding reforms and careful long‑range planning will be needed to maintain programs without repeated tax increases.
Next steps: the board approved advertising the tentative budget for a formal public hearing scheduled for April 27; after the hearing the district will submit materials to the county for review and seek final approval through the normal state/county process.
