State Aid Cuts Force More Job Losses in New Jersey School District

While New Jersey is on the list of states that spend the most money on educating K-12 Students, the reality is that spending is not equally distributed around the state.

With over $11 billion committed to funding New Jersey School Districts each of the last two years, you would think NJ Schools would have enough money to keep operations optimal. But the unspoken truth is many School Districts are being forced to make difficult decisions because their State Aid has been cut.

Over 120 School Districts in New Jersey will see their State Aid cut for the 2025-26 Academic Year, with half of those Schools having their State Funding cut for the second consecutive year.

Now many New Jersey Schools are being forced to make difficult decisions due to State Aid cuts:

-Dennis Township School District has eliminated Courtesy Busing and certain after-school programs after losing $4 Million in State Aid
-Toms River Schools are selling one of their buildings to make up for Budget Issues
-Middle Township School Superintendent is retiring to make way for new leadership with more experience dealing with State Funding shortfalls

The latest New Jersey School District forced to make difficult decisions will cost people their jobs

Passaic Public Schools have announced they will be cutting 51 jobs ahead of the next Academic School year thanks to New Jersey State Aid being cut to their district.

Reports state that 82 percent of the School District's budget is funded by New Jersey State Aid. So when School Officials learned that over $899,000 will be pulled from them due to NJ's adjustments to the School Funding Formula, there was a major budget gap that couldn't easily be bridged.

There were already several staff positions left vacant before the 2024-25 School Year but that did not bridge enough of the financial gap for the School District. With 100 fewer employees heading into the 2025-26 Academic Year compared to a couple of years ago.

Reasons for Passaic School Budget Shortfalls:

-Rise in School Energy Costs
-State Aid Cuts
-Lack of Municipal Aid from Local Taxpayers
-Rise in Staff Healthcare

EDITOR'S NOTE: Contrary to reports from some media outlets, the elimination of the US Department of Education by the Trump Administration has no impact on New Jersey Budget Issues for K-12 Schools or their School Districts losing State Aid in recent years.