School aid in New Jersey could increase by $901 million under a new state budget proposed by Gov. Phil Murphy with an $11.7 billion school funding plan.
Under the proposal, 422 districts will see an increase in state aid, while 137 will see a decrease. Another 15 will not see any change, according to a district-by-district breakdown of the proposed funding plan released on Thursday by the state Department of Education.
“This year’s budget proposal builds on our work to empower students by ensuring they receive the high-quality education necessary to support life-long success,” Murphy said in a statement.
New Jersey’s school funding is determined by a complicated and much-debated school funding formula first enacted in 2008. The formula is designed to equalize the amount of money a district can take in and the amount of money it needs to adequately serve its students.
A school district’s property tax revenue, number of low-income students and enrollment size are all taken into account when determining the amount of state aid a district receives.
Although the formula was passed over 15 years ago, the 2025 budget is the first time it will be fully funded, state officials said.
“This marks a milestone for education in New Jersey,” state Senate President Nick Scutari, D-Union, said in a statement. “For the first time in history we can fully fund the school aid formula. The state financing will give educators the support they need to provide a quality education for students throughout the state. It will help communities strengthen their schools and provide direct assistance to avoid property tax increases.”
Most dollars gained
Murphy’s school aid funding numbers are still just a proposal. The full state budget must be approved by the state Senate and Assembly and signed by Murphy by this summer before it is finalized.
The majority of school districts are set to benefit from the increase in funding. Under the proposal, 422 districts would see bumps in their state aid for the 2024-25 school year. That’s 15 more districts than saw gains last year.
Of the ten districts with the highest increases, seven also saw huge jumps in funding last year. Districts that received increases saw an average increase of 12.68%.
10 largest dollar increases
10. Bayonne
Proposed aid: $129,108,116
Increase: $20,092,847
9. Edison
Proposed aid: $94,373,215
Increase: $20,865,217
8. Woodbridge
Proposed aid: $127,342,551
Increase: $24,084,138
7. Hamilton
Proposed aid: $134,701,935
Increase: $25,430,840
6. Plainfield
Proposed aid: $276,214,014
Increase: $30,132,465
5. Irvington
Proposed aid: $169,112,258
Increase: $30,695,014
4. Trenton
Proposed aid: $377,118,410
Increase: $40,787,869
3. Elizabeth
Proposed aid: $583,131,614
Increase: $50,170,482
2. Paterson
Proposed aid: $583,574,424
Increase: $54,301,962
1. Newark
Proposed aid: $1,251,079,807
Increase: $101,103,866
10 largest percent increases
10. Fairfield (Cumberland County) 47.41%
9. Boonton 48.01%
8. Downe 48.77%
7. Chesilhurst 49.73%
6. Milford 60.69%
5. Weymouth 66.15%
4. Stow Creek 77.87%
3. Colts Neck 98.00%
2. Maywood 105.90%
1. Mannington 112.20%
Most dollars lost
Under the proposed plan, 137 school districts would see their funding decrease. That’s 15 fewer districts than saw decreases last year.
Under the new state funding formula, districts considered “overfunded” start to see their aid allotments shrink starting in 2017.
“When you fail to address learning loss and cut funding to 140 districts and then brag about your school funding plan, it reminds me of the Sesame Street song, ‘One of these things is not like the other, one of these things just doesn’t belong,’” Assemblyman Al Barlas, R-Essex, said in a statement.
Even groups that expressed support for Murphy’s budge proposal said the state needs to address aid cuts.
“While there is much to celebrate in this budget, there is always more that can be done to help New Jersey families,” the New Jersey Education association said in a statement.
10 largest dollar decreases
10. Toms River Regional
Proposed aid: $28,180,559
Decrease: -$2,798,243
9. Lacey
Proposed aid: $7,264,988
Decrease: -$3,205,902
8. South Plainfield
Proposed aid: $12,788,220
Decrease: -$3,569,185
7. Runnemede
Proposed aid: $3,045,315
Decrease: -$4,150,077
6. Asbury Park
Proposed aid: $16,545,718
Decrease: -$4,157,049
5. Neptune Twp.
Proposed aid: $8,326,611
Decrease: -$4,448,559
4. Jackson
Proposed aid: $23,402,010
Decrease: -$4,459,769
3. Lenape Regional
Proposed aid: $18,931,779
Decrease: -$4,692,106
2. Cherry Hill
Proposed aid: $29,477,245
Decrease: -$6,900,182
1. Long Branch
Proposed aid: $43,817,200
Decrease: -$10,401,402
10 largest percent decreases
10. Alloway -29.40%
9. Lacey -30.62%
8. Newfield -31.59%
7. Somers Point -34.39%
6. Neptune Twp. -34.82%
5. Wildwood City -37.84%
4. Woodland -49.75%
3. Runnemede -57.68%
2. Bass River -60.65%
1. Cape May Point -62.56%
Some of the school districts that saw the highest percentage decreases in state aid are non-operating school districts. They are districts that have no schools, but have agreements to send their students to neighboring districts.
Three other districts are not included in the rankings because they are in the midst of merging into a new school district.
The three districts in Monmouth County — Atlantic Highlands Boro, Henry Hudson Regional and Highlands Boro — would see a 100% reduction in state aid next year because they are merging into one regional district.
The new district, called Henry Hudson Regional, is set to receive 5% more in aid next year than the three districts combined to receive in the current year. Because of the unusual circumstance, they were excluded from NJ Advance Media’s analysis.
Stories by Katie Kausch
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Katie Kausch may be reached at kkausch@njadvancemedia.com. Follow her on Twitter @KatieKausch.