Holmdel Schools Introduce 2026-27 Tentative Budget Plan

HOLMDEL, NJ — The Holmdel Township Board of Education recently introduced its tentative budget for the 2026-27 school year, which includes staff cuts, a tax levy increase and the elimination of courtesy busing.

The tentative budget plan was presented at the board meeting on Wednesday by Superintendent Dr. J. Scott Cascone and Business Administrator & Board Secretary Deborah Donnelly.

Tentative budgets for school districts across the county were due on Friday.

A public hearing on the final budget will be held on Wednesday, April 29.

“We do this [budget plans] every year,” Board President Peter Reddy said. “This is probably the most challenging year I’ve seen in the last 12 – by far. Last year was hard, the year before that was pretty hard, but this is by far the hardest.”

In their tentative budget presentation, district officials outlined some of the challenges that made this year’s budgeting process particularly difficult, which ranged from an increase in health benefit costs to managing an anticipated increase in energy and transportation costs.

While the district is slated to receive a $72,741 (or 1%) increase in state aid compared to the 2025-26 school year, some cuts are still necessary to balance the budget, officials said.

• Read More: NJ State Aid: See How Much Holmdel Schools Will Get

“It’s important for the community to understand that we looked under just about every stone,” Cascone said. “The board members spent countless hours really digging deep into this budget – getting on video conferences, sending me questions. They were really, really looking under every stone, and we established efficiencies where we could.”

According to the tentative budget plan, some (but not all) of those efficiencies include:

• The reduction of 20 certificated positions, six non-certificated positions and seven hourly positions
• The Board of Education and Holmdel Township Education Association’s recent teacher contract settlement
• Neutral-cost extracurricular Schedule B, not withstanding a 3% stipend increase (per the recently ratified teacher contract agreement)
• Not running electives with enrollment below 10 students
• Agreement with the Township Committee eliminating administrative costs for contracted police (traffic duty/site security)
• Renewed shared services agreement for Class III Special Law Enforcement Officers (SLEOs) and School Resource Officers (SROs)

Though the district will be reducing positions throughout Holmdel schools, Cascone said the district will be able to save half the certificated positions to date by attrition (ie, those educators can be moved into a position that’s been vacated due to a retirement or resignation).

In addition to staff reductions, the district will also be eliminating courtesy and late busing for the 2026-27 school year in order to balance the budget.

Though the elimination of courtesy busing is on the table for the tentative budget plan, Board President Reddy said the Township Committee has a meeting set for April 6 with their CFO and Township Administrator about potential financial support from the town that could help the district keep courtesy busing.

Adjustments to the tentative budget plan can be made between now and April 29 (the day of the final budget hearing). After April 29, changes to the budget can no longer be made.

If the district is unable to continue courtesy busing for the 2026-27 school year, Cascone said they may explore a subscription-based busing program.

“Whether we’re able to do that [a subscription-based busing program] will be dependent upon how many people in our community are interested in participating,” Cascone said.

“I understand how people feel about that, but the calculus is simple: if we keep courtesy busing, we’re cutting another seven people,” he continued. “And more than likely, they’re gonna be certificated staff members that are in the classroom or providing mental health support to our students.”

Alongside staff cuts and program adjustments for 2026-27, the tentative budget plan also includes a 7.19% tax levy increase (excluding debt service) compared to the 2025-26 school year.

Overall, the total tax levy would equate to an estimated annual tax increase of $762.10 per year (or $63.51 per month) on the average home assessed value of $1,129,951.

To see the full tentative budget presentation for the 2026-27 school year, you can click here.

The school board will host a public hearing on the final budget on Wednesday, April 29, at Holmdel High School.

To watch a recording of the board’s meeting from Wednesday, March 25, you can watch here.

Related

• Holmdel School Board Talks Teacher Contracts, 2026-27 Budget Planning
• NJ State Aid: See How Much Holmdel Schools Will Get
• ‘Preparations, Patience & Perseverance’: Holmdel Teachers Reach New Contract Agreement