PARSIPPANY — The Parsippany-Troy Hills Board of Education has approved the final budget for the 2026–2027 school year, concluding what Superintendent Karen A. Chase described as a challenging and complex budget cycle driven largely by rising health care costs.
In a letter to the school community dated April 30, Chase explained that increasing expenses—particularly in health care—have continued to outpace the state’s 2 percent cap on local tax levy growth. Under the district’s current structure, health care costs alone were projected to rise by approximately 45 percent, representing an increase of more than $13 million.
“To address this, the district utilized the State’s allowable health care adjustment, which permits districts to exceed the tax cap specifically to offset these increases,” Chase said. “However, even with that adjustment, a significant gap remained.”
To close that gap and improve long-term financial stability, the district has made the decision to transition to a self-funded health benefits model. According to Chase, this approach will allow the district to manage costs more directly while maintaining the same level of health care coverage for employees, as established through collective bargaining agreements.
In addition to addressing health care expenses, the district also examined its internal operations to identify efficiencies. As part of that effort, five teaching positions were reassigned to the elementary level, where class size pressures are most significant. District officials emphasized that these changes do not represent new costs, but rather a realignment of existing resources to better meet student needs. Additional staffing adjustments were handled through retirements, reassignments, and non-renewals.
Despite the financial pressures, the district has maintained a strong focus on preserving academic programs, student activities, and investments in school facilities. The budget includes funding for ongoing infrastructure needs, including HVAC system improvements, which officials say are essential for maintaining safe and functional learning environments.
Notably, the district was also able to avoid increases to athletic and activity participation fees, ensuring continued access for students.
“This budget reflects a series of deliberate decisions with a clear understanding of both immediate needs and long-term sustainability,” Chase said. “We remained focused on what our community expects from its schools while navigating a very challenging financial environment.”
Throughout the budget process, the district worked to keep the community informed, providing updates and access to materials through its online budget portal.
Chase concluded by emphasizing that the adopted budget reflects the district’s commitment to responsible stewardship, thoughtful decision-making, and a continued focus on students.
“While the financial environment remains challenging, this budget positions the district to move forward with clarity and long-term stability,” she said.
