Berkeley Heights Adopts $62.3M Budget After Failed Bid for Deeper Cuts, Two Positions Eliminated

BERKELEY HEIGHTS, N.J. — The Berkeley Heights Board of Education adopted a final 2026-27 operating budget of $62,299,166 at its April 30 public meeting at Governor Livingston High School — a figure 2.85% below the current year's spending — after a series of last-minute financial pressures, a failed motion to cut an additional $175,000, and a board vote to eliminate one administrative position and an athletic trainer position.The overall tax levy increase landed at 1.78%, but the general fund levy itself came in at 2.98% — technically above the 2% cap — rising from $47.7M to $49.12M. That increase was offset by a 53.13% drop in the debt service levy, from $1.04M to $489K, as prior debt rolled off, bringing the net impact down. For the average Berkeley Heights homeowner, the estimated annual tax impact is $65.36 — substantially lower than the $321 per year projected during the preliminary budget presentation in March.A Budget Built Under PressureThe district entered budget season facing a nearly $2 million structural gap driven by the health insurance increase, rising state pension contributions of approximately 15%, and energy costs approaching $1 million annually. Months of review by administrators, department heads and board committees narrowed that gap. A $284,000 increase in state aid and the March 10 passage of the $50 million facilities referendum — which shifted capital costs out of the operating budget — helped close the remainder. The preliminary budget passed 6-2 on March 26, with board members Bill Dillon, Mountainside's representative to Governor Livingston, and Sai Akiri dissenting.Late Insurance Spike Forces RevisionOn April 17, the district was notified that health insurance costs would climb an additional $517,402 beyond what had already been budgeted — a late hit Business Administrator Jennifer Nicholson described as an "11th hour" challenge. To offset the shortfall without exceeding the 2% tax levy cap, the district tapped a banked cap of $240,890 — unused tax levy authority carried forward from prior years — drew on a healthcare waiver of $228,111 and trimmed the maintenance line by $48,401."We were able to maintain a balanced budget without compromising those four priorities or making further cuts," Nicholson said, referring to the district's goals of preserving core instruction, retaining quality staff, maintaining safe facilities and ensuring fiscal transparency.Finance Committee Chair Natasha Joly also corrected a figure from the March presentation. The combined operating and debt service tax levy increase was recalculated at approximately 0.82% — not the 1.03% previously reported — after reconciling entries in state budget software and accounting for prior-year debt service rolling off.Where the Money GoesSalaries remain the largest expenditure at 58% of the $62.3 million budget. Health insurance follows at 19%, with instructional costs at 10%. Transportation, custodial and maintenance, special services and energy each account for roughly 3%. Bond repayment represents 1% of total spending. Despite constraints, the district preserved core academic programming, including new K-5 literacy materials, updated middle school French curriculum resources and an expanded drone program at Columbia Middle School funded through the Berkeley Heights Education Foundation.Board member Akiri questioned whether educational spending was equitably distributed by enrollment, noting the budget allocated roughly 34% of educational expenditures to both elementary and high school grades despite the high school serving 836 students compared to 943 in K-5. District officials said costs are not directly comparable across grade levels and confirmed the disparity was not driven by administrative staffing ratios.Dillon also pressed district officials to reconcile the new figures against the framework presented in March, when the tax impact was broken into two components — a 2% operational increase and a 1.03% increase tied to the referendum and bond obligations. Dillon said the April revision made both metrics worse. The late insurance spike increased the cost per pupil at Governor Livingston and raised the certified tuition rate — two figures he had flagged as concerns a month earlier."The costs have gone up in both areas that I was concerned about a month ago," Dillon said. "The cost to the taxpayer has gone up."He added that he had difficulty voting for the current tuition rate, calling it too high.Administrative Position EliminatedAmong the most difficult decisions of the budget cycle was the abolishment of one elementary-level administrative position — identified in board resolutions as position No. 14. The role had been created to provide oversight and curriculum support across K-5 buildings, and its elimination was described by district leaders as a significant sacrifice."No staffing decisions are easy, but I also want to acknowledge this is an administrative position that was cut," Superintendent Dr. Kim Feltre said. "In my mind, it addresses some of the narrative that we are administratively top-heavy, even though this is a position that has value and it will impact us at the elementary level."Feltre noted that teachers lean on the position for support during curriculum evaluations and adoptions, and that the district has two major curriculum adoptions planned for the coming year. She said the district is developing plans to absorb those responsibilities, with Assistant Superintendent Dr. Crystal Marr taking on a significant share in the interim, and organizational restructuring under consideration."When you pull them to go lower — to the lower schools — that also means the upper schools are not getting the same support," Feltre said. "That's one of the reasons why we created this position. Because six through 12 has so much programming and so many needs. I find this position really, really hard to let go."A second athletic trainer position at Governor Livingston High School was also cut as part of the district's effort to close the budget gap.Even with roughly $500,000 in staff breakage from retirements and resignations, Feltre confirmed the district still faced structural budget pressure driven by rising fixed costs.Failed Motion to Cut an Additional $175,000Before the final vote, Akiri moved to amend Resolution 1 to reduce the general fund budget and tax levy by an additional $175,000, which would have brought the total budget to $61,138,596 and the general fund tax levy to $48,946,093. Akiri said the reduction was intended to eliminate a second administrative position at Governor Livingston High School — one she said had been discussed in the Personnel Committee and that she believed the district could operate without, given current enrollment numbers."I've asked multiple times: give me the top three reasons why having this additional administrative position is going to have an educational impact, and I did not get it," Akiri said.Board member Pamela Stanley pushed back, arguing that reducing the dollar amount in the budget did not constitute an actual personnel action and that such decisions needed to go through proper channels involving the Berkeley Heights Education Association."By just trying to decrease the budget numbers, you're not actually changing personnel," Stanley said. "I have not seen the evidence that we are top-heavy. Just because it's said doesn't mean it's actually accurate."Feltre also stated she did not believe the elimination of that position would improve student outcomes or academic performance. The motion failed 3-4, with Akiri, Morales and Foregger voting in favor and Bradford, Dillon, Terrero and Joly voting against.Student Voices on Teacher ResourcesThe district's two student board representatives also weighed in, describing teachers spending personal funds on classroom supplies, including lab materials for science experiments."I've been here for four years and I feel like consistently, I've seen across the board that many teachers struggle in silence, specifically in the STEM area," said Pippa Raaijmakers, a senior at GLHS. "They have to use a lot of their own resources, time and money — even if it's just buying a large bag of potatoes from Costco or spinach in order to look at denaturing enzymes. I just feel like that isn't something that teachers should have to focus on or worry about."Howard Acheson, a junior at GLHS, noted that only 10% of the budget is directed toward instructional needs while health insurance consumes 19%, and described a whiteboard system that fell off the wall in a physics classroom."The teachers keep asking me: please ask for more money," Acheson said.Board members acknowledged the concern. Stanley, a liaison to the Berkeley Heights Education Foundation, pointed out the foundation had $13,000 available in grant funds last year that went unclaimed."We really do need to use these parent organizations," she said, urging teachers to apply for grants. "It breaks my heart — but I also know when I look at our budget how extremely tight it is."Nicholson noted the district's insurance burden, while painful, was not unique. Other districts across the state are facing health insurance increases of 30 to 40%, she said — far exceeding Berkeley Heights' 11% hike."I don't want to say we got off lucky, because I don't feel like that's lucky," Nicholson said, "but on the other hand, I'm glad I'm not dealing with a 30 or 40% increase and then trying to balance a budget past that."Referendum and the Road AheadThe board on April 16 authorized the competitive sale of $50,352,000 in school bonds to fund voter-approved capital improvements, with an estimated interest rate of 4.15%. No major construction is expected this summer; the district plans smaller projects such as security camera installations while larger contracts go out to bid in the fall for work beginning in years two and three of the referendum timeline.Officials cautioned the public that while the debt service levy is lower this year — reducing the typical homeowner's tax bill by roughly $70 in that line — the full referendum bond payment will be reflected in next year's taxes."You voted on the referendum this year, you will pay a small bond payment this year, but next year the full bond goes into effect," Nicholson said. "So you will feel the full referendum next year."The final budget passed 5-3 on resolutions 1 through 3. Foregger joined Dillon and Akiri in opposition on those items but broke with them on resolution 4, the maintenance reserve withdrawal, voting yes.