A Responsible Plan to Address the Budget Gap

Dear Members of the Board of Education and District Administration,

Members of the community have spent significant time reviewing available financial information, historical spending patterns, and the District's operational structure.  Based on this analysis, we have developed a practical framework that demonstrates there are viable ways to address the projected budget shortfall without closing schools or firing teachers.  Please see this Google Sheet for more information on how we arrived at these numbers.

Community schools remain a clear priority for Middletown residents.  Indeed, survey results demonstrate that it’s what residents love most about our public school system.  Before irreversible decisions are considered, it is important that all reasonable cost containment strategies are fully evaluated.  

The District has cited an approximately $3.2 million shortfall on a roughly $200 million budget.  This represents about 1.5% of total spending.  In a district of this size, there are numerous opportunities to achieve savings while protecting classrooms and maintaining educational outcomes.

Our proposal focuses on recurring structural savings, operational efficiencies, and responsible long-term planning.  It is important to note that all of the below ideas are easily reversible.

Key Cost Reduction Opportunities

Administrative overheadThe District currently spends approximately $8 million annually on administrative salaries, with roughly $4 million concentrated at the central office.  Strategic restructuring and a modest reduction in administrative positions, particularly at the central level, could generate approximately $1.2 million in recurring savings.

Furthermore, recent changes to New Jersey teacher evaluation requirements have significantly reduced the number of required classroom observations, thereby lowering the operational need for the current number of supervisory roles, especially for curriculum.  This presents a natural opportunity to streamline administration without affecting classroom instruction.

Technology and software spendingSeveral technology subscriptions and software platforms represent substantial recurring costs.  A targeted review and reduction of these programs, while maintaining essential assessment tools, could generate approximately $500,000 in annual savings.  In addition to financial benefits, reducing unnecessary classroom technology can support improved instructional focus, particularly in elementary grades.

Shared services with Middletown TownshipThe District currently pays approximately $1.3 million annually for Class III police officers in schools.  In many New Jersey communities, municipalities cover these costs as part of shared public safety responsibilities.  A collaborative agreement with the Township to share or assume these expenses would provide meaningful budget relief while maintaining school security.

Teacher retirements and natural attritionAt least 30 teachers are expected to retire in the coming year. By strategically limiting backfilling in a portion of these positions, the District could maintain reasonable class sizes while generating approximately $1.2 million in savings through natural attrition rather than layoffs.

Combined Savings Potential

When these measures are considered together, they produce approximately $4.3 million in recurring annual savings:

• Administrative restructuring: $1.25 million

• Strategic teacher attrition: $1.275 million

• Technology cost containment: $500,000

• Shared services for school security: $1.3 million

Total estimated recurring savings: $4.325 million

These savings exceed the currently cited deficit while avoiding disruption to students, families, and communities. Because access to detailed financial information has been limited, this represents the cost saving opportunities we were able to identify using the information available to us. Some ideas may warrant further refinement, and there may be additional savings that district leadership has already identified but that have not been shared publicly. Our intention is not for this list to be adopted as a standalone plan, but rather to encourage consideration of these ideas alongside other alternatives that could address the budget gap without taking the irreversible step of closing schools.

Additional Revenue Opportunities

In addition to cost containment, the District has opportunities to strengthen revenue through initiatives such as:

• Bringing before and after care programs in house

• Expanded use of school facilities for community rentals

• Expansion of preschool programs supported by available grant funding

• Strategic sale of unused district properties, of which approximately 12 exist

• Negotiating revenue participation from PILOT agreements tied to new residential development in town

Each of these initiatives can strengthen the District's long term financial position while preserving existing schools.

Why This Approach Matters

Pursuing these strategies would allow the district to:

• Create sustainable recurring savings of approximately $4 million per year

• Allow time for thoughtful strategic planning

• Maintain student outcomes and class size stability

• Build appropriate reserve levels to protect financial stability

• Align district decisions with the community's priority of preserving neighborhood schools

• Avoid unnecessary pressure on taxpayers and need for a referendum

• Reduce the risk associated with major structural decisions made under time pressure

Closing schools is a permanent decision with long-term consequences for students, communities, and the District's structure.  Once taken, it cannot easily be reversed.  And the many near- and long-term consequences of such a decision, for all of Middletown, cannot be predicted.  

Before taking such an irreversible step, we respectfully ask that the Board and administration demonstrate that every reasonable financial alternative has been thoroughly evaluated.  Indeed, Rule 7113.1 requires exactly that.

Our community stands ready to work collaboratively with District leadership to develop responsible solutions that protect both students and taxpayers.  Should you have any questions about this proposed plan, please do not hesitate to contact us.

Thank you for your consideration.