Montgomery Township Board of Education Introduces Preliminary Budget Amid Funding Challenges

March 20, 2025

By Nicholas Mistretta

MONTGOMERY, NJ – March 18, 2024 – The Montgomery Township Board of Education held a critical meeting on Monday night, unveiling the district’s preliminary school budget for the upcoming academic year. The discussion centered on financial constraints, tax impacts, and the difficult decisions required to balance the budget.

District Business Administrator Andrew Italiano set the tone for the evening by emphasizing unity. “We are not on different sides,” he said. “We are all in this together.” Acknowledging the challenges faced by the board, he praised its members as dedicated volunteers working toward the success of Montgomery schools.

Superintendent Mary McLoughlin led the budget presentation, outlining key areas such as goals, the budget development process, tax levy calculations, tax impacts, spending reductions, cost drivers, new staffing positions, and planned capital improvements.

Budget Challenges and Tax Impacts
Mr. Italiano explained that the budget, which must be submitted to the county by March 19 as required by law, was developed with careful consideration of financial realities. One major setback for the district is a 3% reduction in state aid from last year, translating to a loss of $255,980.

To help balance the budget, the district is utilizing some of its reserves. However, Mr. Italiano cautioned against relying too heavily on these funds. “Reserves are like a savings account at home. They take a long time to build up and should be used for one-off expenses,” he explained. “In the past, we have used these funds for recurring expenses. It’s not my philosophy, nor our auditors’, to continue this practice. Going forward, we are going to wean ourselves off this and work only with the funds available to us.”

The average home in Montgomery can expect an increase of approximately $324.20

The district’s revenue breakdown includes:
83.5% from local taxes
8.9% from state aid
6.8% from reserves

Difficult Budget Decisions Ahead
While the budget aims to maintain the district’s educational standards, Mr. Italiano acknowledged that cuts are an unfortunate reality. “The budget is the foundation of every successful school district,” he said. “With that said, this is a challenge for every board member.”

Specific reductions and their impact on programs and staffing were not fully detailed during the meeting, but further discussions are expected in the coming weeks.

To see entire BOE meeting click link. Next BOE meeting Tuesday, April 29.