Budget Clarity Hub 2026-2027

Employee health benefit premiums are projected to increase by approximately $10 million, driven by higher claims and broader health insurance market conditions nationwide.

In addition to these cost pressures, there are restrictions that limit school districts in New Jersey to modify plan offerings, adjust co-pays, or negotiate benefit design.

Student transportation expenses continue to increase as contracts are renewed. The district has various legal transportation obligations we must abide by.

70% of students at Cherry Hill Public Schools rely on daily transportation services.

We are committed to investing in all students. The school district is dedicated to expanding and supporting our students with diverse needs and interests.

Please note: While the State Aid notice reflects a reduction in Special Education Categorical Aid, this cut does not represent a true loss of resources to the district.

Contractual salary increases are essential to maintaining a competitive and stable workforce, allowing the district to attract and retain high-quality educators and staff.

On an annual basis, salary increases add approximately $5 million to the district's operating costs.

The General Fund supports the day-to-day operation of Cherry Hill Public Schools. This includes instruction, student support services, transportation, facility operations, and administration.

Our General Fund revenue comes from three primary sources:

1. Local Revenue -The largest share of the General Fund comes from the local school tax levy, which is approved annually by the Board of Education and constrained by the State's tax levy cap. Also included here is tuition received, interest on investments, facility use fees, admissions to athletic events, and student participation fees.
    
2. State Revenue - State aid provides targeted support for specific cost areas such as special education, transportation, and school security, as well as formula-based aid determined under the State Funding Reform Act (SFRA).
    
3. Federal Revenue - Through the Special Education Medicaid Initiative (SEMI), districts receive federal Medicaid reimbursement for eligible services delivered to qualifying special education students.

State aid for Cherry Hill Public Schools is calculated under the School Funding Reform Act (SFRA), which is a formula designed to estimate the cost of educating students and the community's ability to support these costs locally.

Key components of the state aid calculation include:

• Adequacy Budget - The state calculates an "adequacy budget" which represents the estimated cost of educating students based on enrollment, grade levels, student needs (such as special education and low-income status), and statewide cost factors.
• Local Fair Share - The district's local fair share is determined using community wealth indicators, including a property’s value adjusted so it’s fair and consistent as compared to other towns, and its residents' income levels. As property values and income increases, the State expects a greater share of school funding to come from local taxpayers.
• Equalization Aid - Equalization aid is calculated as the difference between a district's adequacy budget and its local fair share.

For Cherry Hill, recent state aid calculations show that the district is still considered overfunded under the SFRA formula (roughly $4.5 million).

The chart below shows the total amount of State Aid funding for Cherry Hill Public Schools over a 5 year period.

• 2022-2023: $29,589,448
• 2023-2024: $36,377,427
• 2024-2025: $29,477,245
• 2025-2026: $28,592,928
• 2026-2027: $27,735,140

Spending reductions were necessary to close a structural funding gap and to ensure financial stability for Cherry Hill Public Schools for years to come.

In recent years, the district relied on one-time surplus and fund balance to delay cuts and stabilize operations, however, those temporary resources have now been mostly depleted.

As a result, the 2026-2027 budget required permanent expenditure reductions to align revenues with ongoing costs and ensure long-term financial stability.

There will be a slight increase of two students added to class size for Grades 1 through 8. This compares favorably with neighboring school districts.

The district was able to identify nearly $8 million in non-personnel savings to help close the budget gap and offset cuts to programs, clubs, activities, and other student-centered experiences.

Examples of non-personnel reductions:

• Instructional supplies
• Professional Development and training
• Technology purchases
• Building maintenance services
• Curriculum writing
• Equipment and furniture replacements
• Subscription services

The district is restructuring the way Encore class content is being delivered at the elementary level. We will continue to ensure that state standards are addressed appropriately and accurately through this restructured format.

As a final cost-saving measure, staffing reductions will account for approximately $6.5 million in cuts to the budget. This equates to approximately 70 positions, district-wide.

In total, approximately 84% of those positions are being addressed through attrition (including a number of currently vacant positions such as open Educational Assistants) to minimize disruption while ensuring long-term stability.

The remaining staffing reductions will be district-wide, including positions at Central Office.

There will be no reduction in services or supports for students receiving special education services. The district will continue to fully fund mandated special education programs and meet student needs.

The chart below shows the total amount of district special education spending over a 5 year period.

• 2022-2023: $51,976,220
• 2023-2024: $52,813,671
• 2024-2025: $57,535,902
• 2025-2026: $57,790,510
• 2026-2027: $58,431,691

In October of 2023, the New Jersey Department of Education announced that Cherry Hill Public Schools was one of 26 districts to receive Preschool Education Expansion (PEA) Aid.

Since then, the district has been dedicated to expanding preschool access to our youngest learners. In addition to recently opening 16 new preschool classrooms at Estelle V. Malberg Early Childhood Center and Kilmer Elementary School, we are continuing to work with nearby partner provider sites to offer high-quality preschool programming and to meet the needs of our community.

The graph below shows the breakdown of Preschool funding for 2026-2027.

• $13,123,918 is funded through Preschool Education Aid from the State
• $4,604,423 is funded through the district's General Fund

The district developed the 2026-27 budget using a zero-based budgeting approach, meaning spending was built from the ground up rather than relying on prior-year assumptions.

Every department and school was required to review programs, services, and staffing to determine what was truly necessary, sustainable, and aligned with current student needs and district priorities.

September/October
The district’s budget is developed through a structured, multi‑month process that begins each fall with Board adoption of a budget calendar.

January/February
Schools and departments submit zero-based budget requests by mid-January, followed by administrative review, Board work sessions, and committee updates.

March
After State Aid figures are released, the Board adopts a tentative budget in March.

April
The Board holds a public hearing prior to final adoption in April, ensuring transparency, accountability, and alignment with district priorities.

Maintaining safe, functional, and well-supported school facilities requires the district to thoughtfully manage its Capital Reserve, which is used to fund critical building and infrastructure needs outside of the voter-approved bond referendum.

The district will invest approximately $3.1 million in projects in 2026-27 that cannot be deferred and are separate from bond related work.

View information for joining the board of education meetings via zoom or phone

The Board of Education will hold a public hearing on the proposed 2026-2027 budget on Tuesday, April 28, providing community members an opportunity to learn more about the budget and offer public comment.

Following the hearing, the Board is expected to take action on the final adoption of the budget. The district remains committed to transparency and encourages residents to participate in the process as we work to balance financial stability with the needs of our students and schools.