Matawan-Aberdeen projects a $4.6 million health-care cost increase next year

What happened

The district is planning for health-care costs to rise about 25%, or $4.6 million, in 2027–28. Officials said this is an estimate, not the final rate; they expect to know the actual increase around February.

Why it matters to families

The projected increase is more than $3 million above the $1.4 million a 2% tax-levy increase would raise, before other rising costs such as salaries, special services, facilities and utilities. The board said it will work through budget options in the coming months; no cuts or tax increase were proposed at this meeting.

The evidence

In the Oct. 26 finance committee report, the board president said district health-care costs had risen 20% this year and prescription costs 30%, and the district was assuming roughly 25% health-care growth next year—about $4.6 million. She said the actual increase for the district's Schools Health Insurance Fund plan would not be known until around February. The report compared the estimate with $1.4 million from a 2% levy increase and said other cost pressures were not included. (Transcript, approximately 00:41:10–00:44:30.)

The source