School finance in New Jersey is complex, and many factors that shape a district budget are determined at the state level. This page is designed to cut through that complexity with clear, honest information about how Readington funds its schools and the financial pressures the district is navigating. Every budget decision connects back to students, and we believe trust is built through clarity.
$38.8M
TOTAL 2025-2026 OPERATING BUDGET
225
PRESCHOOL STUDENT POPULATION 2025-2026
1382
GRADES K-8 STUDENT POPULATION 2025-2026
+25.7%
HEALTH BENEFIT INCREASES SINCE 2023
+20.5%
LIABILITY INSURANCE INCREASES SINCE 2023
+30.3%
TRANSPORTATION INCREASES SINCE 2023
As the data above reflects, costs have risen well beyond what the state's 2% annual cap on tax levy growth can cover.
Even as costs have risen and revenues have tightened, the district has taken deliberate steps to reduce expenses, grow revenue, and protect the programs and people that matter most to our community. Each of the actions below reflects a decision made with our students and taxpayers in mind.
Changing health insurance providers has saved millions of dollars while still complying with state imposed law.
With approximately 40% of our electric coming from on-site solar and efficiency updates, the district has saved millions on utilities.
Strengthened internal programs to reduce costly placements and transportation has saved the district hundreds of thousands of dollars.
Creative grant writing has allowed the district to procure hundreds of thousands of dollars to offset operating costs.
As enrollment has shifted, staffing levels have been thoughtfully adjusted to match. Salaries have remained a flat % of the overall budget despite rising salaries. Staff are meeting the needs of every student, every day.
The recent passed referendum lowers taxes for 20 years starting in 2027, while allowing the district to upgrade to more energy efficient boilers and HVAC systems that should allow for further utility reductions in years to come.
Despite the district's efforts, significant pressures remain. The challenges shaping our budget today did not appear overnight. They come from a combination of outside mandates we cannot avoid, revenue we have lost over time, and costs we have limited power to control.
State aid does not adequately cover the full cost of educating students in the district. Costs are rising at a faster pace than state aid allocations.
State and federal laws require districts to carry out a growing list of responsibilities, often without the funding to support them. In addition, the district is obligated to adhere to contracts for employees.
Harassment, Intimidation and Bullying (HIB) coordination and reporting
Student evaluations and certain costs associated with IEPs
Standardized testing and curriculum compliance
Insurance coverage and security upgrades
Teacher and administrator contract compliance and salary increases
Capital reserves may look like a cushion, but NJ law strictly limits their use to approved capital projects only. They cannot pay staff, fund programs, or cover daily operations under any circumstances. The district has less than $1M in capital reserves and has significantly depleted maintenance reserves. Although the district hopes to replenish these long-term, it shall take years.
The State of New Jersey has imposed affordable housing requirements on townships and many of the newer developments have entered into PILOT tax programs, which are payment-in-lieu of taxes. This increases the burden on the school district for services while the new developments do not pay taxes to the school district, leaving existing residents and businesses to pay a higher share overall.
The budget challenges, both at the state and local level, have been accumulating over many years. This is a glimpse at some of the things that have occured.
During multiple years in this period, the district chose not to increase the tax levy at all and certain years taxes went down. While well-intentioned at the time, those decisions permanently reduced the district's revenue base, making it increasingly difficult to keep pace with rising costs in the years that followed. Over that 9 year period, total taxes increased 1.4% in totality.
The closure of Merck, Walmart and other large corporate entities in the township have dramatically impacted residents in town from a tax perspective. In 2022, a reassessment shifted the tax burden from corporate to residents over double digits resulting in homeowners picking up a large degree of the overall taxes previously paid by corporate entities. Compounding this, challenges by current corporate entities lowering their taxes further have occurred, further straining the tax base and residents.
Some students require specialized programs that the district is legally obligated to provide, even when those programs exist outside our schools. These placements carry significant costs, over $1M annually, and that figure continues to grow each year as out-of-district schools can charge hundreds of thousands per student without violating existing state code.
The vast majority of that funding comes from local property taxes, with state aid as the second-largest source. State aid as an overall percentage of our budget has remained flat over time, placing greater reliance on local property taxes to fund district operations. In response, the district has worked hard to reduce costs wherever possible. New Jersey law caps how much the local tax levy can grow each year at 2% (with special exceptions), which means that even when costs rise faster, the increase in tax revenue cannot keep pace with rising expenses. Schools have limited means of generating additional revenue to bridge that gap. Our 3 primary sources of revenue are deliniated below:
Your property taxes are the backbone of our schools and fund nearly everything we do. But NJ law caps growth at 2% (with special exceptions) per year, which means that when costs rise faster than that, the district has no way to close that gap through the levy alone.
State aid is New Jersey's way of helping school districts bridge the gap between what local property taxes can raise and the true cost of educating students. It is formula-driven, meaning the state determines each district's share, and districts have little control over the amount.
State funding makes our district preschool program possible. With 17 classrooms in the 2026-2027 school year, the district provide preschool to nearly 255 students at no cost to parents. The board's decision to participate in this program has greatly benefited local families.
While the current budget reflects the pressures of today, the district is already monitoring significant cost increases on the horizon for Fiscal Year 2027. These are not optional expenses. They are driven by contract obligations, market conditions, and factors largely outside the district's control.
+3.4%
Contractual Staff Salary Increase
+15.6%
Health Insurance Increase
+9.2%
Energy Increase
+9%
Anticipated General Liability Insurance Increase
+10%
Anticipated Out-of-District Tuition & Transportation Increases
The Board of Education's philosophy over the years has been to balance the needs of the students to provide the utmost learning opportunities and programming, while being mindful of the local taxpayers and burden. Through proactive planning from a ground-based budgeting mechanism, the district anticipates keeping its strong student programming and staff supports while projecting a:
3.6% overall tax levy increase
Need More Information?
Please feel free to contact Jason M. Bohm, Business Administrator at jbohm@readington.k12.nj.us or by calling 908-534-2885.
