Lawmakers Urged To Act As Rising Health Costs, Declining State Aid Impact Bernards Schools

BASKING RIDGE, NJ — The Bernards Township Board of Education(BOE) is urging state leaders to make a change after feeling the impact of higher health care costs and less special education funding has put pressure on the district's budget.

"We are also passing a formal resolution urging the governor and the legislature to repeal or reform Chapter 44 and to restore extraordinary aid funding to districts like ours because we want the state to hear directly from Bernards Township that their actions have real consequences for our students, our staff, and our taxpayers," said Board member David Shaw, at the March 23 BOE meeting.

For the second year in a row, Bernards Township's budget is being impacted.

In order to close an almost $6 million budget gap in its 2026-27 school year budget, the Bernards Township School District must reduce staff by $2.5 million(25 to 30 positions), raise taxes by 4.98 percent, and start charging students $50 to $200 for sports and activities.

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

"I want to be direct about this. If we had received our fair share of extraordinary aid from the state and health care costs had been anywhere close to normal, we would’ve been able to keep this tax increase to 2 percent and avoided the painful cuts we are discussing," said Shaw.

The Board unanimously passed the Advocacy Resolution, which directs Superintendent Nick Markarian and School Business Administrator/Board Secretary Jim Rollo to send the document to the Governor, legislative leaders, the New Jersey Department of Education, and the 21st Legislative District delegation.

According to the resolution, P.L.2020, c.44 requires the School Employees’ Health Benefits Program to offer plans including the New Jersey Educators Health Plan beginning Jan. 1, 2021.

The resolution states that Chapter 44 established reduced premium contributions for employees who select, or are placed into, the NJEHP for medical and prescription coverage.

It also says Bernards Township is not a participating employer in the SEHBP but is still materially affected through the state framework governing public school employee health benefits and collective negotiations.

The board's resolution says many school districts had previously negotiated health benefit agreements with lower net costs than the plan design and cost-sharing requirements imposed through Chapter 44. It also states that some districts saw increased enrollment when employees who had waived coverage elected coverage because of low employee cost-sharing.

In Bernards Township, the resolution says the combined effect of premium levels, reduced employee contributions and increased enrollment has resulted in net increases in employer health benefit costs that are difficult to mitigate, while Chapter 44 constrains collective bargaining over cost containment.

The resolution also points to pressure from special education costs. It states that Extraordinary Aid is intended to reimburse districts for eligible, exceptional special education costs beyond typical budget capacity.

"The Bernards Township Board of Education has experienced that Extraordinary Aid has been prorated, including receiving 71 percent proration in FY 2022–2023, and that the State has decreased proration by approximately 10% each year since FY 2021–2022, notwithstanding increasing district need," according to the resolution.

During the same period, the resolution says the board’s eligible extraordinary special education costs increased by about 40 percent.

In the resolution, the board urges the Legislature and governor to "sunset, repeal, or immediately terminate Chapter 44," or adopt amendments that restore local cost-control tools and protect districts from increased net costs.

If that does not happen, the board asks for cost-saving changes to the NJEHP and calls on the state to restore Extraordinary Aid funding to at least the 71 percent proration level provided in fiscal year 2022-2023.

The resolution also asks for short-term stabilization aid or a hold harmless mechanism so districts can maintain educational programming and mandated student services without layoffs or program reductions.

"It is incumbent upon the Legislature and the Governor to address these unintended financial consequences and ensure that school districts are not forced to choose between funding mandated student supports and maintaining core educational programs," according to Bernards Township BOE.

Have a news tip? Email alexis.tarrazi@patch.com.