Superintendent Elizabeth C. Jewett presented a detailed preliminary budget report, highlighting concerns that could affect the district’s financial planning. A primary issue discussed was the expected 12% increase in healthcare costs, a problem not unique to Watchung Hills but affecting municipalities statewide. This increase poses a challenge, given the budget cap of 2%, which permits only a $700,000 increase in expenditures. The superintendent noted that many expenses, such as maintenance and support services, are rising beyond this limit, driven largely by inflation.

Declining enrollment numbers, especially in the Greenbrook area, were another focus. The area, which once had over 400 students, is projected to see this number decrease to 350. This decline affects tuition income from sending districts—a crucial component of the district’s budget. The board discussed using surplus funds to ease tax burdens, with a capital reserve of approximately $5.7 million available for such contingencies.

The board also highlighted the rising costs of special education as a concern, noting an increase in the percentage of classified students despite flat or declining overall enrollment. This trend, coupled with inflation affecting maintenance contracts and support services, further strains the budget. There was a call for public advocacy to push for increased funding and better support for special education needs, as ongoing discussions at the state level have yet to yield significant improvements.

A notable portion of the meeting was devoted to potential capital improvements, including necessary upgrades to school security, replacement of a boiler condensate tank, and improvements to IT infrastructure to prevent overheating, which could harm equipment performance. Technology costs were also a point of concern, with increases impacting the budget. The superintendent noted that energy costs, including those related to transportation, were on the rise, reflecting broader economic trends impacting budgets.

Further discussions centered on the potential for providing free lunches for all students, sparked by a comment regarding the increase in free lunch eligibility due to changes in federal formulas rather than an actual influx of eligible students. This led to considerations of the financial and logistical impacts of such a decision.

The need for follow-up discussions with township committee members was emphasized to explore this potential funding source.

In addition to financial matters, the board explored the digitization of historical records, weighing the costs and processes involved. This discussion aligns with broader efforts to improve administrative efficiency and reduce reliance on physical document storage.

A separate strategic planning committee meeting on January 22 focused on reviewing a Request for Proposal (RFP) for a strategic plan consultant. This initiative aims to develop a plan catering to community needs, with a timeline of six to nine months. The committee seeks to engage stakeholders actively, gather data through surveys, and develop measurable outcomes over a three to five-year planning horizon. An outcomes-based dashboard is planned to monitor progress, with the IT department providing technical support.

The shared services regionalization feasibility study advisory group also convened, receiving updates from the Rowan School Regionalization Institute. Researchers presented data collection progress and outlined upcoming steps, including interviews with educational stakeholders and a public communication strategy. A town hall is proposed for early April, with a preliminary draft report expected by May.