Special Election To Raise Taxes For Bernards Township Schools 'Not Recommended'

BASKING RIDGE, NJ — Plans to hold a special election for residents to vote on a question to help balance the Bernards Township School District budget in January will not move forward — for now.

David Shaw, who sits on the Finance Committee, gave the Board of Education(BOE) an update at the Monday night meeting.

"The Committee discussed the potential for a separate ballot question to increase the tax levy. After reviewing possible expense reductions and revenue sources, the Committee determined it would not recommend pursuing an additional levy proposal at this time," said Shaw.

The reasoning for not pursuing the ballot question was that the primary driver of increased costs is health benefits, which Shaw said can be covered by available levy increases.

In July, the district previously floated around the idea of holding a special election due to the increases in healthcare, inflation, and unionized vendors. Read More: 'Our Budget Difficulties Are Not Going Away,' Bernards Township Schools Warns

While the BOE is not recommending the special election at this time, there could still be a possibility that it comes up again in the future as budget woes continue to plague the school district.

The Finance Committee had also reviewed the health benefit claims for July, which Shaw said were approximately $2.1 million versus the $1.8 million budget.

"The committee will continue to review claims monthly, as health benefits represent the largest impact on the budget. And they truly are the largest impact right now," said Shaw, who noted that one month of data does not necessarily indicate future trends.

Additionally, the Finance Committee also reviewed the unaudited projects for 2024-2025 health benefits, which were over budget by $3 million.

"As a result, the targeted fund balance of $4 million closed at $1.7 million, so there is a pretty big gap we will have to make up for. The shortfall will need to be addressed now in the next budget," said Shaw.

Shaw also noted that salary increases in the district are expected to require around a $2.1 million levy increase. And health benefits remain unchanged, but projections indicate a potential 15 percent increase, which would require an additional 3.3 percent levy.

"Current assumptions anticipate health benefit trending closer to the higher range," said Shaw.

Budget woes have been building for many districts in New Jersey, including Bernards Township.

In May, the BOE unanimously approved a budget of $128,523,243 for the 2025-26 school year. This is an increase of 3.97 percent or roughly $3.7 million in the local tax levy, or 4.22 percent in total over the 2024-25 budget. Read More: Tax Increase, Staff Cuts Approved In Bernards Township School Budget

Under the approved budget, the tax impact on the average home property in Bernards Township valued at $871,769.11 will pay $9,542.89 or an increase of $405.97 for the year.

The budget also included cutting 28 school staff positions and program reductions to close a $2.5 million gap in the district's budget.

Additionally, during the prior year of May 2024, the BOE approved a tax increase, reduced staff, and made changes to transportation to save money. The Board approved the final budget of $123,317,081 for the 2024-25 school year with an increase of 3.6 percent. Read More: Staff Reduction, Transportation Savings In Bernards School Budget

The district cut $845,000 in salary and benefits and approved a later school start time and triple-tier bussing schedule for the district on March 11, 2024.

The next Board of Education meeting is scheduled for Sept. 29 at Ridge High School PAC.

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