Mahwah presents $86.38 million 2026–27 budget, cites health-cost drivers and a 3.93% tax levy increase

The Mahwah Township Board of Education’s business administrator presented a proposed $86,382,564 budget for the 2026–27 school year and said the district’s tax levy will total $75,879,585, a 3.93% increase from the prior year. The administrator attributed most of the levy increase to higher employee health benefit costs and limited leeway under New Jersey’s tax levy cap rules.

Why it matters: District officials said rising health and prescription costs are the largest pressure on local school finances. The presentation listed projected increases of 20% for medical costs, 40% for prescription costs and 12% for dental costs and described a health-benefit waiver used to justify part of the levy above the 2% statutory cap.

Details from the presentation: The budget summary said state aid for 2026–27 totals $5,320,466 (a reported 6% increase). Enrollment was reported as 2,559 students, a decline of 51 from the prior year. The administrator said staff costs represent roughly 48.58% of the operating budget and that the district plans a net decrease of approximately six full-time-equivalent positions with no expected impact to class size or programs. Health benefits were listed as $11,953,440 and were described as a significant driver of the increase.

Local-tax impact: The presenter reported a tax rate of $1,299.34 per $100,000 of assessed value and said the average home in the district (reported assessed value $482,098) faces an annual tax increase the administrator described as $37.78. The transcript also contained a conflicting numeric phrase that appeared garbled; the district presentation tied the primary tax change to the levy and the health-adjustment component of the cap.

Balancing strategies and next steps: The administrator described strategies to balance the budget, including reducing reliance on one-time fund balance and reserves, reviewing department-level spending for efficiencies and maximizing revenue opportunities such as interest earnings. Officials said they will move from presentation to formal adoption at a subsequent meeting; the district emphasized maintaining programs while responding to rising costs.

Attribution: The budget summary was presented by the district’s business administrator. Questions from board members and recorded votes on consent items followed later in the meeting.