Board hears finance committee warning of steep insurance premium increases that could affect tax levy

At a Nov. 11 workshop, Finance Committee chair Anthony Alfano told the Hardyston Township Board of Education that the district is preparing for large increases in health insurance costs and is shopping for alternatives to limit the impact on the tax levy. Alfano said the committee met Nov. 5 and reviewed current expenditures of about $1.6 million for the month and that an insurance salesperson illustrated a possible 28% increase in the state plan, which could translate into a roughly 4.5% increase in the tax levy if absorbed by the district.

The district’s finance lead said they are exploring options, including private plans and other scenarios that show increases ranging from about 18% in some plans to as much as 28% in others. "None of them are good," Alfano said, adding that the committee will seek additional quotes and report back. Board members discussed avoidance strategies and emphasized the numbers are not yet final.

Why it matters: officials said large premium hikes could force the district to raise the tax levy or cut services; the board signaled urgency in finding alternatives that minimize the burden on taxpayers. The presentation included a facilities maintenance plan item (about $100,000) discussed as part of the broader budget picture.

Board members asked administrative staff to pursue multiple quotes, check plan details and return with recommendations before budget adoption. The board did not take any formal budget action at the meeting; finance approvals on routine items were carried later in the agenda.

Next steps: the finance committee will report back with additional insurance quotes and a recommended plan to mitigate levy increases.