26-27 Budget: Overview & Resources

A Zero-Based Approach

The administration built this year's budget from scratch using a zero-based approach. No prior-year spending was carried forward automatically. Every dollar of revenue was assigned a purpose. Every expense had to be necessary and justified. The goal: build a budget that is balanced, strategic, and 100% sustainable for the future.

Statewide Pressures Hitting Home

Districts across New Jersey are facing what many are calling a perfect storm of rising costs. Hanover Township is no exception. Health care costs increased 23%. Utilities rose 20%, driven by commercial energy rates that exceed residential increases. Out-of-district special education placements grew by over 18%, fueled in part by private school tuition rates that are not subject to the same funding formulas as public schools. McKinney-Vento costs for homeless students also increased. At the same time, the state and county warned districts to prepare for potential reductions in federal grant funding.

Enrollment and Staffing

District enrollment has declined by over 235 students since 2016. During that same period, staffing levels were not reduced to match. This budget now aligns staffing with current enrollment. The reductions total approximately $1.33 million. These savings are not surplus. They bring the district to a balanced position required for county budget submission. Earlier this year, the district was told it was approaching an operational deficit and would not have enough funds to pay its bills by June without corrective action.

No reductions were performance-related. The administration and Board reviewed every position carefully. Decisions followed New Jersey tenure law. Non-tenured positions were reduced first. Tenured employees with applicable certificates retain bumping rights. The Board attorney reviewed the entire process. Tenured staff members who are reduced in force receive a letter guaranteeing first right of recall if the position is ever restored. That right extends indefinitely.

The two programmatic changes students will notice are the elimination of standalone elementary Spanish instruction. Spanish will still be offered in a different format. The elementary strings program will also be phased out. Current fourth-grade strings students will have the opportunity to choose a band instrument next year. Middle school strings and an after-school ensemble will continue. The administration noted that Whippany Park High School does not offer a strings program, which factored into this decision.

Transportation Changes and Subscription Busing

The district is moving from a 1.5-mile courtesy busing radius to the state-mandated 2.0-mile radius. Families living within two miles of their school will no longer receive courtesy busing unless they reside on a designated hazardous route. This change applies to all grade levels, including kindergarten. Most surrounding districts already follow the state-mandated distance.

For families who need bus transportation within the two-mile radius, the district is introducing a subscription busing option. Pricing is set at cost: $700 for one student ($3.80 per day), $900 for two students ($2.45 per student per day), and $1,000 for three or more students in the same family. The district will notify impacted families on June 1. Full details and enrollment information will be posted on the district website.

 

 

Controlling Costs and Building In-District Programs

The district continues to reduce costs through cooperative purchasing partnerships with ACES for energy, ED Data for supplies, Morris County Educational Services for transportation, and CDWG for technology. The township DPW provides plowing, salt, field mowing, fuel, and pothole repairs at district facilities. These partnerships contain costs before the budget is built.

The Director of Special Services has been building in-district programs to serve students who would otherwise be placed in private out-of-district schools at significantly higher tuition and transportation costs. This year, the district added a new LLD program at the middle school and a full-day preschool disabilities class. Next year, a new elementary multiple disabilities class will be introduced. These programs keep students in their home schools with their peers while reducing long-term costs.

Tax Impact

Over 92% of the district's budget comes from local property taxes. State aid accounts for approximately 6.28% of total revenue. This year, the district received a $113,332 increase in state aid, which primarily supports special education.

The tax levy increased 5% this year. The district did not seek voter approval to exceed the standard 2% cap. The increase reflects a state-approved health care adjustment available to districts experiencing significant health insurance cost increases. The only reasons a district goes above 2% are voter-approved questions, health care adjustments, or enrollment adjustments.

For the average Hanover Township home assessed at $431,500, the school tax for 2026-2027 will be $3,646.61. The increase over last year is $168.29, or $14.02 per month. The rate per $100,000 of assessed value is $32.98.

Budget Resources

We have posted the following materials on our budget information page.

• Full budget presentation video from the April 28 Board Meeting
• Budget Slide Deck PDF
• User-Friendly Budget
• Frequently Asked Questions

Budget questions or comments? Email budgetquestions@htboe.org