Parsippany BOE Adopts Budget, See Tax Increases

PARSIPPANY, NJ — The Parsippany Board of Education has adopted its 2026-27 budget after what school officials described as a “challenging” budgeting process.

The budget reflects a seven percent tax hike, mainly due to rising costs in healthcare, according to the district. Specifically, according to Superintendent Karen A. Chase, the district faced a 45 percent increase in health care costs, amounting to more than $13 million.

“In response, the district utilized the State’s allowable health care adjustment, which permits districts to exceed the two percent tax levy cap specifically to offset increases in health care costs,” said Chase. “While this provided some relief, it did not come close to covering the full increase.”

To minimize the deficit, the district transitioned to a self-funded health benefits model to “manage costs more directly and reduce long-term financial pressure” while still providing the same level of health care to employees.

Additionally, the district made changes to internal operations, including the transition of five educators to the elementary level, while managing retirements, reassignments, and non-renewals, officials said.

The district’s priority when creating the budget was preserving academic programs, supporting student activities, and continuing targeted investments in facilities and safety. Additionally, the district worked to keep funds meant for infrastructure improvements and avoid raising fees for school sports and programs.

“This budget reflects a series of deliberate decisions. Every line was examined. Priorities were reassessed. Adjustments were made with a clear understanding of both immediate needs and long-term sustainability,” Chase said. “The result is a budget that responds to current pressures while maintaining stability in our schools.”

To learn more about the Parsippany School District’s new budget, visit its budget portal online here.

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