At the heart of the meeting was the adoption of the tentative budget for the 2025-2026 school year. The Superintendent and a key presenter detailed the collaborative process behind the budget’s development, emphasizing the significant pressures the district faces. Health insurance premiums are expected to increase by 12% to 15%, adding up to an estimated $1.1 million to the overall employee benefits cost, which totals around $9 million. This increase poses a substantial challenge, as the state of New Jersey maintains a 2% cap on tax levy increases, which is insufficient to meet the district’s financial obligations. The board explored the possibility of exceeding this cap through health benefits adjustments and utilizing banked cap from previous years, estimating a health benefit adjustment of $530,125.

In addition to health insurance, the board considered the implications of not proceeding with the proposed budget, which could lead to staffing and program gaps. The Superintendent highlighted the need to maintain educational programs and avoid staff reductions, despite the seemingly large budget figure of $48 million.

Another focal point was the district’s enrollment projections, which predict an increase from the current 1,620 students to 2,022. This expectation has driven the restructuring of the district, including not replacing 24.5 positions, to manage staffing levels prudently. The board stressed the importance of making informed decisions to avoid future fiscal challenges, with a focus on maintaining sustainable practices.

State aid was a topic of concern, as the district faced an unexpected 3% reduction in anticipated funding. However, an additional $169,800 was received, totaling approximately $3,234,669. The board expressed caution, acknowledging that these figures could change, as the state retains the authority to adjust funding before the final budget approval deadline on June 30. The district’s ability to refund existing bonds for the second time, saving $162,700, was cited as a strategic move to manage debt effectively.

The board also highlighted successful efforts to secure grants totaling approximately $825,000, including a $53,000 high-impact tutoring grant. However, the denial of a $500,000 school security grant was noted, with speculation that the district’s socioeconomic status contributed to the decision. Despite this setback, the district continues to seek additional funding opportunities.

Facility improvements and programmatic enhancements were discussed, with plans to use the capital reserve account for projects like resurfacing the KHS track and installing a dust collection system for the industrial arts room. Security enhancements are an ongoing priority, with estimated costs presented. The board also explored curriculum changes, including new programs in theater, drama, and robotics engineering, responding to student survey feedback and reallocating funds without impacting the Position Control Roster.

Transportation efficiency and its financial implications were another topic of discussion. The board addressed the underutilization of buses and the costs associated with courtesy busing for families living near schools. Outsourced busing services also factored into the transportation budget, with costs for one route potentially reaching $225,000. The transportation budget’s complexity was highlighted, with multiple factors influencing costs, including legislative changes.

In a move to improve lunch quality, the board proposed a pilot program to remove Kinnelon High School from the national school lunch program, raising lunch prices to $7. The pilot aims to provide different menu options based on feedback, with the potential for permanent changes if successful.