School Layoffs, Sport Program Cuts May Be Avoided Under 2 New Laws

NEW JERSEY — Several New Jersey school districts considering mass layoffs, larger class sizes, nixed sports programs and more in order to offset reductions in state aid next year are slated to see some relief, according to a pair of bills signed this month by Gov. Phil Murphy.

The new measures seek to boost funding for the 140 school districts facing state aid cuts — some in the double digits — announced in February. As a result of budget shortfalls, some districts considered raising taxes, hiring freezes and paused renovation plans, among other proposed solutions. Read more: Job Cuts, 'Ridiculous' Class Sizes, Sports Nixed: NJ Schools Face Budget Woes

“This additional funding and the flexibility permitted will help districts to address staffing issues and other problems created by current funding shortfalls,” Susan Young, Executive Director of the NJ Association of School Business Officials, said of the dual laws. “We look forward to continue working with the administration to find more permanent solutions to providing the necessary resources for our public schools.”

The first bill, A4161, will boost funding for school districts experiencing reductions in aid calculated under the School Funding Reform Act. The legislation establishes a $44.7 million Stabilized School Budget Aid Grant Program under the Department of Education to provide grants comparable to 45 percent of a school district’s state school aid cut for the upcoming school year.

The bill also allows some districts experiencing reductions in state aid to request increases in their adjusted property tax levies above the current two percent cap.

The second bill, A4059, allows the New Jersey Commissioner of Education to allow certain school districts facing a reduction in state aid to submit budgets no later than five days following the enactment of the FY2025 appropriations act.

The Commissioner of Education will be tasked with assessing the responsible use of the additional school districts funds, Murphy said.

“From the onset of my administration, we have strived to ensure every child in New Jersey receives the top-notch education that has become synonymous with our state’s public education system,” Murphy added.

“Through seven budget cycles, we have never wavered on our commitment to our school communities – and that rings true today. With this legislation, we are giving local school districts critical support during trying times, as difficult financial realities muddy the already complex process of adopting a balanced budget.”

During his annual budget address to legislators in February, Murphy noted the proposed plan includes the single largest investment into public education in state history. The budget would fully fund the state’s school funding formula for the first time, raising public school funding by $908 million to $11.7 billion.

That formula was part of the School Funding Reform Act of 2008, which aimed to address school funding inequities.

While many districts have received additional funding in recent years, more than 200 have seen aid cuts yearly since 2018 as a result of the revision to the SFRA known as S2 that was signed into law by Murphy (S2 got its start in 2017, when then-Gov. Chris Christie and then-Senate President Stephen Sweeney made a deal that swapped the increase in the gasoline tax Christie wanted for cuts in state aid to districts that had been receiving adjustment aid).

The 2024-25 fiscal year is supposed to be the last year of S2 and its cuts. You can view the 2024-25 preschool and K-12 state aid summaries announced in February by county and school district here.

But despite the welcome relief plan inked over the weekend, education officials are still sounding the alarm on Murphy to robustly reevaluate the school funding formula once and for all. Sen. Andrew Zwicker called the program a “stopgap” intended to provide temporary relief as the state works to find a stable long-term funding solution.

“While this relief is certainly welcome, we recognize that even more work lies ahead, and we must remain laser focused on the matter of how we fund our schools,” said Timothy Purnell, Executive Director of the New Jersey School Boards Association.

“We look forward to continuing to collaborate with the Murphy administration and the Legislature as they continue to evaluate the school funding formula to make necessary adjustments to guarantee ALL of New Jersey’s students receive a thorough and efficient education.”