Palisades Park board adopts $39.64M budget with staff reductions and 6.74% operating tax levy increase

The Palisades Park Board of Education approved the 2026–27 budget on April 29, 2026, voting to adopt a total operating and special revenue budget of $39,640,682. The board approved an operating tax levy increase of 6.74 percent and accepted a budget package that includes proposed staff reductions and continued efforts to reduce reliance on fund balance.

In a presentation before the vote, district presenter Mr. Albano (Staff member) told the board health benefits for full-time employees jumped about 31 percent year-over-year and that employee benefit costs have risen by roughly $1.3 million over four years, with a $1.6 million increase in the current year. "Health benefits have gone up dramatically this past year — it's about a 31% increase," he said, explaining the rise is not within the district’s control and is a major driver of the budget gap. Finance presenter Mr. DeAndrea (Presenter) said the district used approximately $2.6 million of fund balance in 2024–25 when extraordinary-aid adjustments are included and warned continued reliance on reserves is unsustainable.

The proposed budget includes personnel reductions intended to align recurring expenditures with projected revenues. The presentation listed reductions across categories: two administrative positions reduced, reductions in part-time custodial staff primarily by attrition (about eight positions), and a proposed decrease in certificated staff of 18 positions within the bargaining unit; presenters summarized the total reductions across categories as 33 positions. The administration emphasized that certain positions tied to student IEPs (aides required by individual education plans) will remain as required by law and that CSE decisions will govern supports for special-education students.

Board members asked for clarifications about the levy calculation and special revenue accounting; presenters explained the 6.74 percent figure applies to the operating tax levy and does not include special revenue accounts such as state preschool funds. Mr. DeAndrea also walked the board through revenues and expenditures, noting tuition and out-of-district special-education placements as significant expenditure lines and recommending a facilities-level review to guide future capital planning.

The motion to adopt the budget passed by roll call. The board followed the adopted budget with additional routine approvals on the consent agenda and moved on to public participation and a closed session to discuss legal matters.

The administration said it will continue daily budget reviews and pursue alternatives (grants, partnerships, and potential in-district special-education placements) to reduce the number of staff reductions before the May 15 renewal timeline. The board asked for additional materials, including a multi-year chart comparing district tax changes and inflation, which presenters agreed to provide.