Tentative Budget

2026-27 School Year

March 25, 2026

Jason Weber�School Business Administrator

Timeline

• January 21, 2026 — Health benefits presentation
• February 11, 2026 — Budget goals overview
• February 25, 2026 — DRAFT Tentative Budget presentation
• March 12, 2026 — State aid numbers available
• March 25, 2026 — Tentative Budget presentation & BOE approval
• By April 20, 2026 — ECS, ECBO County Review
• May 6, 2026 — Public hearing on budget
• May 8, 2026 — Posting of user-friendly budget for public inspection

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Enrollment

Spreadsheets are available to the public at: FY27 Tentative Budget Sheets

Enrollment by Grade

Enrollment Over Time

October 15 Comparisons (from ASSA filings)

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• 10-year decrease of 197 students PK-8
• Demographic shift = shifting needs

Spreadsheets are available to the public at: FY27 Tentative Budget Sheets

WHRHS Tuition

Spreadsheets are available to the public at: FY27 Tentative Budget Sheets

Budget Basics

REVENUES

• Revenues describe expected income and set the bounds for the budget
• Revenues come from multiple sources
• Local tax levy - by far, the largest portion of GBTPS revenues (2% cap, with some allowances)
• State aid
• Withdrawal from reserves and prior year surplus
• Received tuition
• Facilities usage fees, interest income
• Grants

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APPROPRIATIONS

• Appropriations describe how the district will use the revenues to effect its mission
• Driven by district goals, enrollment, and needs (long-term and emergent)
• Tuition
• Salaries and benefits and professional development
• Transportation
• Subscriptions and services
• Utilities, maintenance, and repairs
• Supplies, equipment, and capital projects

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What is in this budget?

• K-8 ELA Adoption and PD
• K-5 science programming and sustainment
• Alignment of Innovation & Design from IEF to GBMS
• Expanded access to Middle School math program
• Eliminate Humanities as standalone program, retain Ethics Bowl extracurricular
• Behavioral supports, additional staff member and aide
• Basic skills instruction, additional staff member
• Curriculum writing for revised standards and QSAC reporting
• Additional full-time CEFM in maintenance (net neutral, removed from custodial)
• Continue ongoing maintenance programs
• Repayment of PSE&G Direct Install
• Maintenance of technology systems (no major new initiatives)
• Capital improvement projects: bleachers (GBMS), fencing (IEF), intercom phase II

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School Aid Update

Updates Since Last Meeting

• State aid relatively flat
• Lower than anticipated charter school tuitions
• Added another $10,000 to budgeted ExAid
• Added Title II funding @ 50% of current year
• Additional cuts to technology hardware
• Additional cuts to anticipated OOD tuitions

Impact:

• Tax levy, allowable: 6.09%
• Tax levy, draft tentative budget: 5.86%
• Tax levy, tentative budget, 5.69%

Health Benefits Waiver

If healthcare costs increase more than 2%, districts may utilize a waiver for the (state-approved) difference. For the 2026 calendar year, the increase was 31.9%. This waiver allows the district to exceed the 2.00% tax levy cap.

For FY27, the district’s allowable health benefit waiver comes to $1,059,376, or 4.09% of the tax levy.

The district will utilize $957,000 of that waiver. The remaining $102,376 will become “banked cap” and may be utilized in the over the next two budget builds (FY28 and/or FY29).

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Overview

Spreadsheets are available to the public at: FY27 Tentative Budget Sheets

Drivers — Net Changes

• Increased benefits costs: $1,416,054
• Negotiated salary increments: $198,650
• Insurances: $65,790
• Capital projects: $197,324 (offset by capital reserve funds)

Appropriations

Revenue

Spreadsheets are available to the public at: FY27 Tentative Budget Sheets

Fund Balance and Reserves

• Budgets must be balanced. The district cannot run a deficit, nor create a “slush fund”. Budgets are approved by the Executive County Superintendent and are verified with supporting documentation.
• Breakage occurs when actual costs are lower than anticipated: unfilled vacancies, staff on leave, staff departing mid-year, OOD tuitions moving out, etc. There may also be unanticipated revenues. These lead to a surplus at the end of the year.
• Surplus must be rolled over as revenue for the next budget build (designated fund balance) and/or designated for reserves. Districts may (should) also have an undesignated fund balance equal to 2% of the general fund budget. This is the “rainy day” fund.
• Reserves have specific purposes and restricted usage. Funds in reserves, including any interest they earn, can only be utilized for their intended purpose. They cannot be spent down to reduce the general fund levy.
• Reserves are a sign of a healthy budget and proper stewardship. They allow for long term planning, the ability to handle unanticipated expenses, and reduce the need for high-cost borrowing.

A more in-depth explanation can be found here: Financial Reserves and Fund Balances

Tax Impact

Taxes are based on calendar year; levy includes second half of 2025-26 and first half of 2026-27 school year.

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Spreadsheets are available to the public at: FY27 Tentative Budget Sheets

Outlook - Appropriations

While FY25 (2024-25 school year) ended with a strong financial picture, FY26 (the current 2025-26 school year) and FY27 (the budgeted 2026-27 school year) present significant challenges.

The primary concern is and will be health benefits. The state plan experienced a 39% increase for calendar year 2026 and an additional 25% increase is anticipated for calendar year 2027. Given the district’s insurance experience rating, Chapter 44 requirements, and the need to provide equal-to-or-better alternatives, there is unlikely to be relief until Ch.44 sunsets in December 2028. For additional information see the January presentation from Centric Benefits Consulting.

Additionally, flooding in the summer of 2025 cost the district an unanticipated $150,000 net (after insurance). Insurance prices are projected to rise 14.7%, or $65,790 for FY27.

While outside of benefits and insurance the budget remains relatively flat, there is a rebalancing of those funds with a continued focus on shifting investments to high-impact, high-value programs and services.

Energy, and costs related to volatility in that market, will be a wildcard.

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Outlook - Revenue

On the revenue side of the equation, FY26 has been a good year for the district. There are multiple unanticipated received tuition students, due to a mixture of program availability and residency enforcement, totaling approximately $220k. Unfortunately, none of the revenue is guaranteed for FY27 and, due to students aging out, will decrease sharply.

Federal aid is not a certainty. The assumptions are that Title I and IDEA will be funded, at least in part. County office guidance is to budget 75% of what was received in FY26 for FY27. Title II funding is being budgeted at 50% of what was received in FY26.

The district is still budgeting extraordinary aide ($160k), though that funding is not guaranteed.

Finally, the district is utilizing significant fund balance from prior years ($1.1m). This is denoted as taxpayer relief, funds that we use from prior years to build future budgets. This number has held steady for the past 2 years and will likely decline in future years.

Unfortunately, we are projecting a smaller (or no) contribution to the capital reserve fund at the end of FY26 than in prior years.

Outlook - Positives

• At the end of FY25 the district was able to accelerate projects intended for FY26, specifically the Discovery Den and laptop refresh. This proactive action allowed the budget to weather the flood damages and healthcare increases in FY26.
• Energy auction in FY26 cut 40+% on supply costs, locked in (18 mos for electric, 36 months gas).
• ERI program at GBMS was essentially self-funding, due to tuition students.
• Residency investigations converted non-residents to tuition students and/or eliminated future costs.
• High school tuition is on-track with projections and decreasing enrollment.
• Once again, Green Brook is on the lower end of the range of levy increases for our region and with no budget-driven reductions in force. The district is operating lean.

Board Q&A