How we got here
Mismanagement by the previous administration
First, under the previous Business Administrator, Montclair Public Schools accrued $12.6M in unpaid invoices over several years.
Second, the previous administration created a 2025–2026 budget that initially appeared balanced, but in fact fell $7M short of available revenue (this year’s deficit has now decreased to $3M after January cuts).
Where did the money go? The money went to expenses the district incurred, like healthcare costs and salaries. The problem was that those expenses weren’t properly budgeted.
The economics of running schools are getting harder
Across New Jersey, the costs of running schools are rising faster than tax revenues and state aid.
In Montclair, over 80% of school funding comes from property taxes. State law caps property tax increases at 2% per year, while at the same time, there has been a decrease in state and federal funding for services that Montclair schools are legally required to provide.
This imbalance creates a structural deficit. That means that each year, we need to fund the same schools with less and less.
How did this happen?
Chronic underbudgeting
Major cost areas (e.g., busing, healthcare, food service, out of district placements) were under-budgeted.
These costs are typically projected in the budget creation process, but actual expenses were much higher than projections, and cuts were not made to accommodate the difference.
Unsustainable use of funds
In some cases, recurring expenses were covered by one-time funding sources. This set up an unsustainable budgeting problem when those funding sources expired but the programs continued.
Kicking the can down the road
According to Superintendent Turner and the current Business Administrator Dana Sullivan, prior administrations would hold off on incurring expenses until after July 1 (when the MPS fiscal year begins), thereby mixing expenses owed for the prior year with the present year’s budget obligations and carrying debts from one year into the next.
Unbudgeted payments
Vendors (like IMANI, a long-standing local non-profit focused on academic and social support for students of color) were paid despite those expenses not attaching to a line item in the budget.
Poor recording practices
Invoices were stuffed in drawers and not reflected properly in expense reports presented.
The bottom line: MPS is left with a $12.6M debt. But the debt does not reflect “missing” money.
The money went to expenses the district used and in many cases, needed (e.g., healthcare costs, salaries). The problem was that those expenses were not properly budgeted for and, therefore, revenue did not exist to pay for them without draining our fund reserves and accruing massive debt.
The new administration has ended these practices. They are committed to delivering a balanced budget. Read about what has changed.
What is happening now?
Costs rising faster than revenues
Recurring expenses—especially salaries, special education placements, transportation, utilities, and employee health benefits—are rising faster than Montclair can legally raise revenue.
Budgets cannot automatically balance from one year to the next
This is a state-wide issue. The issue is hitting us harder and faster in Montclair as a result of the years of mismanagement that drained our reserves, but we are not alone.
The problem requires action that will take time to implement. Superintendent Turner has laid out potential actions the district is prepared to take, including:
Realigning staffing
Renegotiating contracts and identifying efficiencies (i.e, transportation and health care)
Improving financial forecasting
Exploring more revenue opportunities
The bottom line: Voting YES/YES pays for our past $12.6M debt and adds $5M in recurring revenue, creating a higher base for future 2% increases.
We cannot afford to reduce future revenue sources in an environment where costs are already outpacing revenue. Passing the levies is a start. It prevents an even deeper crisis next year and helps repair the financial damage of the past.