Lacey Passes School Budget After Debate Over Taxes And Staffing

LACEY, NJ — The Lacey Township Board of Education approved the 2026-27 school budget in a 6-1 vote after district leaders said rising operating costs and health benefit expenses shaped the plan. Board member Sal Armato voted no, while the remaining members voted yes.

Before the vote, Acting Superintendent William Zylinski said the budget was built to preserve classroom programs while managing a difficult financial picture. In the presentation, Zylinski said that the district was facing a $6.2 million increase in operating costs and a reduction in federal funding. The budget includes a 5.87 percent tax levy increase, which district officials said would have an estimated impact of about $24 a month for the average homeowner.

Zylinski said the district reduced debt service by 29 percent this year and kept the tax rate unchanged from the original proposal despite adjustments between the tentative and final budget. During the presentation, Zylinski also said the budget includes no reductions in core programs, instructional staff, transportation and co-curricular opportunities.

A large share of the discussion focused on health insurance. The district said it spends $20.4 million annually on health benefits, with employee contributions totaling about $1.8 million and local taxpayers covering $18.6 million. The presentation said a family plan under the newer educator tier costs the district about $63,690, while similar coverage under a legacy plan costs about $84,000.

Zylinski said 347 employees are enrolled in educator health plans and 46 are enrolled in legacy plans. The presentation also said roughly 100 eligible employees waive district coverage. Zylinski said the state health benefits system is facing a structural problem and that the district is trying to leave the state pool.

The budget presentation listed reductions in full-time paraprofessionals, full-time health aides, administrative staff salaries, transportation, fuel and supplies, maintenance supplies, technology, athletic and co-curricular supplies and instructional supplies. Zylinski said some of those reductions carry risk, including out-of-district tuition and transportation costs.

The board also reviewed capital reserve activity tied to the high school roof project. According to the presentation, the district has saved for years in capital reserve and plans to pay for half the roof in full without bonding. The state is providing 40 percent of the high school roof through a grant, while the other half is part of the district referendum funding transfer into the general fund.

During public comment, Regina Discenza of Sunset Drive in Sunrise Beach said, “The budget scenario that we presented tonight is is both difficult and pitiful for the taxpayers to endure.” She also said, “And I think more should have been done to save a few jobs, especially your betrayal of certain longtime employees.”

In board comments before the vote, one member said, “Over the past three years, our community has seen a significant tax increases approaching 27 percent.” Another member said the increase in health insurance costs was difficult to absorb and said the loss of paraprofessionals and health aides was painful.