NJ voes 3% cap on school aid cuts
Districts grappling with less money, higher costs
By: Mary Ann Koruth
NorthJersey.com
USA Today Network - New Jersey
..... As New Jersey school districts wait to hear whether they will have to absorb more cuts in state aid for the coming school year, [2025-2026] the Murphy administration has tried to ease the anticipation by giving distinct leaders an upper limit on how much state aid they could lose.
.....
Districts will not see a reduction of more that 3% from last year's [2024] said aid package, the Department of Education told districts in a broadcast memo last week. [02/20/2025]
..... It's a welcome move, but some leaders say it does not account for the broader problem districts are facing: an upward trending the cost of educating children:
..... For instance, Jefferson Township Public Schools in Lake Hopatcong in Morris County is closing one school building. Cozy Lake elementary, in the fall, [2025] and is putting its central office, which houses the board offices, up for sale, after losing $45 million in the last seven years.
.....
The district has seen drops in enrollment of 29% since about 2011, but it has had to absorb a disproportionate cut of 60% in state funding over that period, said Schools Superintendent Jeanne Howe.
..... "The 3% cap on the loss of state aid is very welcome, she said, but there are changes the state can make in how it calculates its aid categories for a fairer outcome tailored to districts.
.....
"What we really need here in Jefferson is an increase in the per-pupil allocation that we receive from the state," Howe said.
..... Special education aid for children with learning and other disabilities, for example, should be based on census data and not on state average, she said. In Jefferson Township, 20% of students need special education aid, more than the state average of about 16%, Howe said.
..... The costs of placing children with special needs in out-of-district schools is also rising.
..... State aid is a key number as districts make spending projections for the coming year. In recent years, rising costs in many areas - such as security, technology, and health insurance for teaches - mean hat a cut or increase in state aid can significantly change a district's financial outlook.
..... "School districts can anticipate that total K-12 state aid will not decrease by an amount greater than 3% of their K-12 state aid for the 2024-2025 school year," said the February 18 [2025] memo to districts. The state was giving them the heads-up to "assist" schools in planning their next school year budgets, it said. this 3% limit will apply to the for primary aid categories: equalization, special education, security and transportation.
..... School district budgets are determined by revenue raised from a portion of residential property taxes, added to that lump sum in state aid, based on a complex formula that takes into account several factors including enrollment. Districts also receive federal aid dollars.
Total drops in aid could top 3%
..... The total drop in aid could still be higher than 3%, because there are other categories that go into calculating the final funding package for each district.
..... The limit does not apply to those categories, which include choice funding, military impact aid, county vocational stabilization aid and educational adequacy aid, tranches that are determined based on "factors such as annual participation or enrollment and are therefore not considered in the calculation of the limits,: the state memo said.
.....
Jefferson Township is one of many districts that lost aid through a law that phased out last year [2024] called S2. It redistributed aid to districts over a seven-year period, based on factors such as falling enrollment, but most districts that faced cuts have said their loss in funding was disproportionate to their enrollment drops.
..... "we appreciate the state is hearing our concerns to help districts at least make some predictions toward balancing their budgets for next year, [0225-2026] but I think there are more demands today on a school distinct than there were many years ago - for example, safety and security," Howe said. "We do get aid in that category, but that is not enough."
..... Large, rural districts such as Jefferson Township see high transpiration costs, to, with buses having to take winding roads and hilly routes, she said. "The demands of a school district;s budget are not what they were. Technology needs are not what they used to be. We need to purchase laptops, smart-boards and more," she said.
..... Howe said her district has explored the option of reducing costs by joining with another neighboring district, but that plan did not materialize.