Large Staff Cuts, Tax Increase And Student Sports, Activity Fees Coming To Bernards Twp.

BASKING RIDGE, NJ — For the second year in a row, the Bernards Township School District delivered grim news on Monday when it introduced its preliminary budget for the 2026-27 school year.

In order to close an almost $6 million budget gap, the Bernards Township School District must reduce staff by $2.5 million, raise taxes by 4.98 percent, and start charging students for sports and activities.

Board member and Finance Liaison David Shaw said that after speaking with Superintendent Nick Markarian and Business Administrator Jim Rollo, "this was one of the most difficult budgets we’ve had to work through in all their years in the district."

"And I want to be transparent about that. I also want to be honest, this is the second very difficult budget year in a row, and that weighs heavily on all of us," said Shaw at the Monday Board of Education meeting. "We have been planning for this all year, and while the outcome is tough. We are satisfied as much as we can be, given the circumstances."

The proposed budget of $130,162,111 for the 2026-27 school year is an increase of 1.08 percent or roughly $1.394 million over the 2025-26 budget.

In anticipation of this year's budget, Rollo said the district instituted a hiring freeze last spring. Any positions from retirements or resignations were not filled.

In January, the district was facing an approximate $6 million budget gap.

In February, Rollos said the district was able to reduce the budget gap with allowable levy adjustments for health care and use of expiring bank cap. This was an unused tax levy from three years ago, where the board had not raised taxes in that year.

Rollo said while this helped close the budget gap, the district was "almost there but not quite."

Additionally, in February, the district was again hit with bad news. The state Department of Education released the 2026-27 state funding figures, which stated Bernards Township School District is expected to get $240,454 less than last year in school aid from New Jersey as part of the latest state budget proposal.

In March, to bring the budget into balance, they began personnel reductions and a $500K revenue increase through instituting activity fees.

Markarian told Patch that the anticipated final range to close the gap is about 25 to 30 positions, or equal to $2.5 million when compared to July 1, 2025. Those positions range across almost every area of instruction and support services.

"We are taking advantage of staff resignations and retirements, and we have been doing that since last spring. So, will we have to have some folks that we have to let go for reasons of economy? Yes. We will, but we are trying to make sure we use every possible resignation or retirement first," said Markarian.

This is similar to last year when the district cut 28 staff positions.

As far as the sports and activity fees, Markarian said costs could range anywhere from $50 to $200, depending on what the activity or sport is.

"We are working with the finance committee. We have some draft ideas on how we can achieve half a million dollars of revenue in that regard, but that's what we are talking about. Students who are playing a sport, students who are members of a school club, parking, for example, at the high school, there is a fee-based system for that. Those are the kinds of things we are talking about," said Markarian.

Markarian added that, "Those things need to be finalized, but that’s the kind of numbers we are talking about there."

Rollo noted that the largest driver in the budget can be attributed to healthcare costs, which are up 13.94 percent or roughly $3 million. Additionally, other main factors included:

• Utilities and Insurance, which is up $123,488 or 5.37 percent
• Out of District Tuition, which is up $151,011 or 4.58 percent

Rollo noted that most joint health insurance funds are seeing renewals in the 20 to 31 percent range.

"It’s not just us. It’s not very calming, but again it's a little reassuring that it's everybody that a better fix may come in the future," said Rollo.

Tax Impact

The average home property value projected in Bernards Township for 2026 will be around $931,637.26, with a tax bill of $10,032.15. Rollo estimated residents would see a tax increase of $489.27.

There are also a number of capital projects scheduled to happen during the summer 2026, including:

• Cedar Hills Roof(ROD Grant) - $1,515,700
• Ridge Varsity Field Complex - $2.749,130
• Ridge Track Re-Surface - $841,665
• Cedar Hill Direct Install - $143,897.11
• Mount Prospect Direct Install - $248,689.53

Planning facility upgrades and equipment items in the budget:

• Oak Street Direct Install - $301,924
• Classroom Projectors - $96,705
• Replacement Bus - $140,000
• Network Switches Upgrades - $35,594
• Replacement Grounds Equipment - $19,500
• Security Cameras - $13,500
• Replacement Maintenance Van - $40,000

Markarian noted that the district's "biggest goal for us in this climate is to maintain programs and services."

While also "simultaneously be good stewards of the resources in the community. We understand we are all taxpayers, we know that we are talking about two of our most precious resources — our kids and the financial resources to make life doable. So we understand how both of these assets are most precious to us."

A public hearing and final vote on the budget is slated for May 4.

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