Parents, students and teachers packed a Hackensack Board of Education meeting after an audit revealed the school system’s budget deficit has grown to $17 million, or $2 million more than initially disclosed.
Public testimony on Wednesday stretched for hours as community members voiced anger and disbelief over the new figures and the possibility of deep cuts ahead. As many as 90 full-time staff positions may be scrapped to close the gap, district officials warned.
An outside auditor hired by the board testified that a review of district finances uncovered years of mismanagement, including the repeated use of cash reserves, rather than property tax increases, to balance budgets. Auditor Steven Wielkotz said the district also lost more than $4 million in revenue after contracts expired, and school board staffing increased about 20%
Wielkotz described widespread bookkeeping problems, including negative account balances and the improper use of capital funds for maintenance expenses — a practice he called illegal. He also criticized the district for relying on one-time federal and state pandemic aid to support ongoing expenses, likening it to putting a mortgage payment on a credit card.
The district has 5,751 students enrolled in six K-12 schools and employs about 900 people, records show. Its proposed 2025-26 budget was $153 million.
The latest increase in the deficit is attributed largely to health insurance costs, which jumped more than 30% on Jan. 1.
The meeting came a week after the Board of Education sued the district’s former superintendent, business administrator and several vendors, alleging their actions helped create the financial crisis. The prior administration hired dozens of employees whom the district couldn’t afford and failed to disclose the true state of the district’s finances, according to the lawsuit. Former Superintendent Thomas McBryde was placed on administrative leave in June.
Acting Superintendent Andrea Oates Parchment said layoffs and a higher tax levy are under consideration and warned that the fallout will be felt across the community.
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