At the meeting, it was revealed that despite diligently following regulations and meeting deadlines, Keansburg was the only district in the county affected by the federal funding loss. As a result, the board proposed amendments to the previously approved tentative budget to address the deficit. These amendments included using $431,134 in surplus funds and withdrawing $1,943,863 from the capital reserve fund, which serves as an emergency buffer. Additionally, the board recommended applying $1 million from a future capital grant and proposed a 1.47% tax increase to mitigate the financial shortfall.

The board emphasized the importance of maintaining student support staffing and programs while minimizing the tax impact on residents. They also highlighted ongoing communication with state and federal officials to hold decision-makers accountable and potentially recover the lost funds.

Public comments during the meeting reflected community concern and confusion about the financial situation. Residents questioned the district’s financial status, specifically the reported $1.9 million in capital reserves and how local taxes are allocated. The board clarified that approximately 35% of local taxes go toward the school budget, distinct from the town budget.

Discussions also touched on the removal of preschool courtesy busing and its implications, with the board affirming that such decisions were part of necessary budgetary adjustments due to the funding loss.

A notable point of discussion was the state’s indication that the town is $7.5 million below its fair share of contributions towards school taxes, prompting concerns about potential tax increases. While the state suggested a 24% tax hike, amounting to an increase of $1,300 per taxpayer, the board assured the community that such a drastic measure would not be pursued.

The school business administrator presented a tentative budget for the fiscal year 2025-2026, which was motioned and seconded for approval. However, concerns were raised about a property owned by the district that has not been utilized or sold, causing a financial burden due to ongoing taxes. The administration explained that the property could only be sold for educational purposes, and discussions with Middletown were ongoing to explore options for its use.

The community voiced a desire for increased involvement in addressing the district’s financial challenges. While the administration expressed openness to such suggestions, they noted that budget deadlines limited the immediate implementation of new initiatives. The board emphasized the importance of community participation in school board meetings and encouraged residents to engage with the administration directly for clarity on issues.

They acknowledged the historical challenges the district has faced in securing funding for necessary repairs and upgrades to schools. Despite these challenges, progress has been made in securing grants and shared services, resulting in a capital reserve of $1.9 million.

The board reiterated the importance of transparency regarding administrative costs and their commitment to providing quality education despite financial strains. They urged attendees to engage with the board directly for clarity instead of relying on rumors and encouraged residents to reach out to elected officials for support in securing necessary funding.