Cuts in proposed N.J. budget pose ‘undeniable challenges’ for some South Jersey school districts

More than two-thirds of New Jersey school districts would get an increase in state aid for the 2025-26 school year under Gov. Phil Murphy’s proposed budget, which this year provides best- and worst-case scenarios to ease funding uncertainty.

Under Murphy’s $12.1 billion spending plan to fund the state’s more than 600 K-12 school districts, state officials say about 68% of districts would get an increase in state aid, and 31% would get a decrease. The proposed budget would increase aid by $386 million from the previous year.

Unlike past years, when districts anxiously awaited expected aid figures, the Murphy administration sought to minimize the volatility that has often forced districts to make last-minute cuts to programs and staffing. Last year, 140 districts were notified that they would receive less aid, but some of that was later restored.

This year, districts learned in advance that in a worst-case scenario, any cuts in most funding categories would be limited to a 3% reduction from the previous year, and at best, any increase would be capped at 6%.

The state Department of Education released preliminary aid figures to districts Thursday. The amounts could change in the coming months during the budget approval process by the state legislature. Local school boards are preparing proposed budgets for next school year.

Thirty-two of the 106 districts in Burlington, Camden, and Gloucester Counties would see a decrease in state aid for fiscal 2026, which begins July 1. Eight others would see an increase that is lower than the statewide average of 3.3%.

Cherry Hill, Washington Township in Gloucester County, Cinnaminson, Eastern Regional, Haddon Township, Lenape Regional, Woodlynne, and Camden County Vocational are among those facing the largest dollar decreases.

Faced with a decrease for the second straight year, Cherry Hill Superintendent Kwame Morton and board president Gina Waters sent a letter to the community warning about possible budgetary impacts. The state said the district would receive $28.6 million, a loss of more than $884,000.

Because the district received supplemental aid last year that is not included in this year’s aid, the total reduction is a loss of nearly $4 million in aid for 2025-26, the letter said:

“This decrease poses undeniable challenges, and difficult decisions will need to be made.”

The aid reduction will not affect projects underway that were funded by a $363 million bond referendum approved in 2022, according to Morton and Winters. The district plans to meet with state and local officials to advocate for more funding, they said.

Haddon Township Superintendent Robert J. Fisicaro said a $274,000 cut in state aid “adds to an already challenging financial landscape for our district.” That is coupled with a $362,000 loss in funding that was restored last year but not included in this proposed budget, he said.

Fisicaro said his district faces a $2 million budget gap.

“Budget challenges like these impact not just our finances but the people — our students, staff, and families — who make our district strong,” Fisicaro wrote in a letter to parents.

Meanwhile, Camden, a state takeover district, would get a $20 million aid increase, the largest in the region. Other districts that would get increases include Maple Shade, Paulsboro, Pennsauken, Rancocas Valley Regional, Riverside, and Willingboro.

The state calculates school funding based on statistics such as enrollment, poverty, and the local share that a community is expected to contribute to operate its schools. There have been calls to change the formula and rely less heavily upon local property taxes.

The Murphy administration said it would change how it calculates funding for special education by using a district’s actual enrollment, as opposed to the current census-based method. It also proposed more flexibility to allow districts to exceed the current 2% cap on property tax increases.

Assemblymen Greg McGuckin and Paul Kanitra, both Ocean County Republicans, criticized the proposed school spending plan, saying it would not fully fund schools and districts would be forced to raise property taxes. Sen. Anthony Bucco (R., Morris) called for an immediate legislative hearing on school funding.

“We must ensure that every student in New Jersey, regardless of their zip code, has access to the resources they need to succeed,” Bucco said in a statement.

Graphics editor John Duchneskie contributed to this article.