State “Affordable Housing” Mandates Drive Saddle River School District Toward Tax Hike Referendum

the staff of the Ridgewood blog

Facing a projected $2.1 million budget shortfall, the Saddle River School District is considering asking local voters to approve an operating tax referendum.

The district’s current $14.6 million budget faces severe financial pressure under New Jersey’s 2% tax levy cap. Cap rules limit the district to a $200,700 annual revenue increase—far below what is needed to cover surging operational and tuition expenses.

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What Is Driving the $2.1 Million Budget Gap?

District officials attribute the deficit to sharp increases across several core operational areas:

• Regular Education Tuition ($1,000,000): Adding 53 students over two years at approximately $20,000 per student.

• Special Education Placements ($522,998): A 47.4% increase in students requiring specialized out-of-district placement (ranging from $22,000 to $120,000 per student).

• Healthcare Insurance Premiums ($238,205): A 31% spike in health benefit costs.

• Student Transportation ($202,575): Increased bussing expenses for out-of-district programs and middle/high school arrangements.

• Salaries & Staffing ($93,486): Contracting and wage adjustments.

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Affordable Housing & Enrollment Growth

Saddle River educates PK–5 students locally at Wandell School, while students in grades 6–12 attend neighboring districts via send/receive agreements. Recent state-mandated affordable housing initiatives have accelerated student enrollment:

• Residences at Choctaw: A 111-unit 100% affordable housing development completed in late 2025.

• AvalonBay Communities: A 275-unit development project approved on Boroline Road.

• Toll Brothers Developments: Approved projects including 54 townhouses near Wandell School and 48 townhouses along Algonquin Trail.

With class sizes at Wandell School approaching 20 to 22 students, school leaders project that continued growth may require hiring additional staff, with new teachers costing between $80,000 and $140,000 annually.

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Tax Impact Breakdown

If approved by voters, the proposal would permanently raise the local tax levy above the state cap:

Assessment Metric	Value / Impact
Projected Budget Deficit	$2.1 Million
Average Home Assessment	$1.9 Million
Estimated Tax Increase	~$465 / year

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