Hackensack’s Road to Recovery: A $17 Million Battle for the District’s Future
the staff of the Ridgewood blog
Hackensack NJ, The Hackensack City Board of Education is taking aggressive steps to regain its financial footing following the discovery of a staggering $17 million budget shortfall. In a move aimed at “rebuilding the public’s trust,” the board voted on Feb. 11 to bring in a heavyweight financial consultant to steer the district through its current crisis.
The Strategy: Expert Oversight vs. State Takeover
The board has officially hired Thomas Egan, a seasoned financial veteran who previously served as Bergenfield’s business administrator for nearly two decades. Egan has worked with at least seven other New Jersey districts facing fiscal distress and has served as a state monitor.
Board President Jennifer Harris noted that hiring an independent consultant was a proactive move to prevent the state from appointing its own monitor. A state-appointed monitor would strip the local board of its decision-making power—often for years—and the costs would fall directly on Hackensack taxpayers.
“This was basically our response to the public, in terms of oversight and rebuilding the public’s trust,” said Harris.
How Did the Deficit Happen?
An auditor’s report by Steven Wielkotz paints a picture of “improper budgeting” and “excessive hiring.” Key factors leading to the $17 million gap include:
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The “COVID Cliff”: Using one-time pandemic relief funds to cover ongoing, permanent expenses.
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Staffing Surges: Despite a 6.5% drop in student enrollment since 2020, staffing levels jumped by 20% (from 751 to 903 employees).
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Loss of Tuition: The end of a tuition agreement with Maywood in 2019 resulted in a $4.5 million annual loss.
The board is currently suing former Superintendent Thomas McBryde and the former business administrator, alleging mismanaged finances and improper hiring practices.
Immediate Relief: A $6.5 Million Lifeline
To prevent mid-year teacher layoffs and program cuts, the Hackensack City Council stepped in late last month. The Council voted to transfer $6.5 million from the city’s surplus reserves to stabilize the schools.
This infusion of cash allows the district to bypass a “potentially divisive” public referendum and, most importantly, keeps teachers in their classrooms for the remainder of the school year.
What’s Next for Hackensack Students and Parents?
While the original “Corrective Action Plan” submitted to the state included large-scale job reductions, the board is now working to rescind that plan. With Egan’s guidance and the city’s financial support, the board hopes to vote on a new recovery plan that avoids layoffs entirely.
Key Details of Egan’s Contract:
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Rate: $125 per hour
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Hours: Maximum of 25 hours per week
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Duration: Through June 30, 2026 (with an option to renew)
Hackensack School Budget Crisis: At a Glance
| Figure | Detail |
| Current Shortfall | $17 Million |
| Projected 2027 Deficit | $24 Million (if unaddressed) |
| City Support | $6.5 Million transfer from surplus |
| Staffing Growth | +20% since 2020 |
| Enrollment Change | -6.5% since 2020 |
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