Learning Loss and Budget Cuts: The Perfect Storm for NJ Education

NJ Schools Struggle to Recover from Pandemic as Funding is Rerouted or Dries Up

New Jersey’s math proficiency has been in a slow-motion nosedive for two decades, but the pandemic gave it an extra shove off the cliff. Fourth-grade math scores dropped from 49% proficient in 2019 to just 39% in 2022, while eighth graders slid from 49% to a paltry 33% over the same period. Reading and writing proficiency is not much better. But don’t worry—things get even better! Suburban districts are hemorrhaging funds thanks to the S-2 formula, federal COVID funding is drying up, and Governor Murphy decided to cap off his tenure with a farewell budget featuring $1 billion in new taxes. Because clearly, nothing fixes an education crisis like squeezing taxpayers even harder. Bravo, New Jersey!

Throwing Good Money After Bad

New Jersey was told that our high property taxes guarantee top-notch education, however last year we dropped to 12th place in education rankings when adjusted for income. Who knew that throwing money at schools wouldn't automatically make them the best in the nation? According to the 2024 National Assessment of Educational Progress (NAEP) results, when factors like poverty rates, race/ethnicity, special education status, and English language learner status are considered, New Jersey's education achievement ranking falls to a less-than-stellar 12th place. It seems that all those property taxes aren't quite the magic bullet everyone thought they were.

See how your schools measure up with other New Jersey schools, click HERE.

The S2 Funding Scam

Your property tax dollar isn’t even going to your school when you don’t live in a New Jersey city. The S2 funding formula has turned New Jersey’s suburban and rural districts into financial punching bags, draining their budgets to reroute money toward urban areas. The result? Suburban schools are cutting deeper than ever—closing schools, dumping staff, slashing busing, and axing sports and clubs—while urban districts, supposedly the beneficiaries, are still struggling to make ends meet. Even East Orange had to lay off nearly 100 staff members despite a modest funding increase. Meanwhile, suburban districts in Monmouth County experiencing cuts totaling nearly $21.5 million in state aid are left with overcrowded classrooms and fiscal cliffs so steep they might as well come with warning signs. The total loss of funding across New Jersey school districts due to the S2 funding formula is estimated to be over $1 billion since its enactment in 2018. This seven-year phase-in of cuts was designed to eliminate adjustment aid for districts deemed "overfunded" under the School Funding Reform Act. Hundreds of suburban and rural districts have faced year-over-year reductions, forcing them to make drastic budgetary adjustments, such as staff layoffs, program eliminations, and increased reliance on local property taxes to fill gaps S2 was meant to create fairness in school funding, but instead, it’s created chaos, leaving both suburban and urban schools fighting over scraps while students bear the brunt of the fallout.

• Ocean County Schools collectively lost the most state aid of any county in New Jersey under S2, in particular, Toms River Regional Schools have faced a cumulative loss of over $137 million in state aid since S2 was enacted. This year alone, the district entered the 2024-25 school year with a $26.5 million budget shortfall. Measures taken include cutting more than 200 staff positions, reducing services, and rejecting a state-imposed 9.9% property tax increase that would barely dent the deficit. The district has even filed a lawsuit against the New Jersey Department of Education over the funding crisis.

• Monmouth County’s Freehold Regional High School District lost nearly $100 million in state aid over the duration of S2 funding cuts, making it one of the hardest-hit districts in the state. To address these losses, the district has implemented significant measures, including cutting over 100 staff positions, discontinuing programs such as the alternative education program for at-risk students, consolidating transportation routes, and spreading equipment costs over multiple years. Despite these efforts, the district faces an $11.4 million budget gap for the 2024-2025 school year. Middletown, proposals have been made to close three schools to address a $10 million budget deficit for the upcoming year

• Burlington County schools collectively lost $23.5 million in state aid due to the S2 funding formula since its implementation in 2018. Among these, the Lenape Regional High School District faced the largest individual loss, totaling $18.8 million over the duration of S2. To accommodate the cuts, the Lenape district eliminated over 100 staff positions and while discontinuing programs like Navy JROTC, gymnastics, bowling, and about 20 clubs.

• Cape May County school districts collectively lost $23.7 million in state aid over the duration of S2 funding cuts, dropping from $66.5 million in aid during the 2017-2018 school year to $42.8 million in the 2024-2025 school year.

• East Brunswick School District in Middlesex County lost a total of $12.8 million in state aid over the entire duration of S2. These reductions forced the district to make significant budgetary adjustments, including eliminating 51 staff positions, reducing programs, and cutting services such as courtesy busing. Despite these measures, they still continue face financial challenges, urging local lawmakers to reassess the state funding formula to alleviate the strain on its school.

Federal COVID Funds Pulled from Schools

Schools across the U.S. lost access to COVID relief funding after Education Secretary Linda McMahon abruptly moved up the reimbursement deadline, citing the pandemic’s end. While districts had years to use the funds for health and safety projects, delays left them scrambling when the cutoff came. Governor Phil Murphy criticized the move as reckless but avoided acknowledging that these were pandemic-era funds meant for immediate use, not a long-term savings account.

It’s truly astonishing that some New Jersey school districts managed to sit on $85 million in COVID relief funding for five whole years without using it. What is the purpose of upgrading ventilation systems or implement safety measures during a global pandemic when you can just let the money collect dust? Did they think the pandemic would magically resolve itself without any effort? Now, with the funding revoked, they're left scrambling, wondering why they didn't act sooner. Maybe next time they'll remember that "relief" funding is meant to be used during emergencies, not as a long-term slush fund.

Loss of Federal Funding Over Parental Rights

The federal government is finally stepping in to protect parental rights, threatening to withhold $3.43 billion from California over its law that deliberately keeps parents in the dark about their own children’s gender identity changes. And New Jersey districts should pay close attention. Just like California, New Jersey’s Policy 5756 allows schools to socially transition students without parental consent or even notification. If your district doesn’t reverse course, it could face the same financial and legal consequences. Schools should be focusing on education, not secret-keeping and directing a social gender transition. If respecting a parent’s constitutional right to direct the upbring of their child isn’t motivation enough, maybe the risk of losing billions in federal funding for special education and meal programs will be.