MONTVALE, N.J.—The Montvale Board of Education has adopted a $27.1 million budget for the 2026–27 school year, with school taxes on an average assessed home expected to increase about $360.
The district’s spending plan totals $27,089,530, up from $25,302,755 last year. Based on Montvale’s average home assessment of $551,726, the estimated school tax bill will be $5,435, according to district officials.
Superintendent Darren Petersen said rising employee health care costs were the primary factor behind the increase.
“The biggest driver” of the budget increase was health benefits, Petersen said, noting that costs rose by approximately $1.2 million.
“Over the past few years, the cost of health benefits for the Montvale School District has increased from approximately $3 million in 2023–2024 to over $5 million budgeted for the 2026–2027 school year,” Petersen told Pascack Press.
Petersen said employee health benefits increased more than 30% in January 2025 and could rise by a similar amount in 2026.
According to the district’s budget presentation, general education accounts for about $8.7 million, or 32%, of total appropriations. That category includes teacher salaries, supplies, guidance services and extracurricular activities.
“The Board continues to allocate funds as effectively as possible to meet the needs of all Montvale students,” Petersen said. “Unfortunately, the rising costs of health benefits remain a significant financial headwind for the district.”
Petersen said district officials remain grateful for voter approval of a $29.4 million referendum in 2021 that funded a range of facility improvements.
Projects completed through the referendum include an addition and two playgrounds at Memorial Elementary School, a renovated cafeteria at Fieldstone Middle School, and a new field house.
Additional improvements over the past four years have included HVAC and fire alarm upgrades, new STEAM labs, enhanced security features, a new middle school library, an ADA-compliant ramp and a restroom facility at the athletic fields.
“With rising costs in health care, utilities, special education, etc., it is becoming more and more challenging to make ends meet from a budgetary standpoint,” Petersen said.