TRENTON, NJ – New Jersey’s S2 funding formula, introduced seven years ago, has significantly impacted school districts throughout the state, with varying effects across different regions. As the state transitions into the final year of a seven-year plan to fully fund its school funding formula, Governor Phil Murphy has highlighted this period as a pivotal moment in enhancing educational excellence and equity across New Jersey. The 2024 fiscal year sees a record investment aimed at fully realizing the funding formula’s goals, touted by state officials as a historic milestone for public education.
However, the implementation of the S2 funding formula has led to severe financial strain for certain school districts, particularly at the Jersey Shore. For instance, the Jackson School District has seen a drastic reduction in state aid, from $46 million to $23 million over the seven-year period, despite a relatively stable student population. This has forced the district to grapple with significant budget cuts, impacting essential services like transportation and multilanguage learning programs.
“We have suffered a devastating $22.4 million in state aid cuts under the S2 funding structure. The fact that it occurred during the same time our multi-language learner population increased by 459% AND our transportation responsibilities soared by 752% AND other fixed costs, outside of our control, including inflation, have increased exponentially,” said Jackson School Board President Giuseppe Palmeri in a letter to the governor. “We are fiscally responsible. We have had two outside auditors look at our financial reporting, along with the Ocean County Superintendent and our state-appointed monitor. All four have concluded that we have been fiscally responsible prior to and throughout the S2 funding period. Yet here we are in a critical, unsustainable position.”
To address these challenges, Governor Murphy signed a bill providing over $100 million in supplemental K-12 funding to nearly 170 districts experiencing reductions due to the S2 formula. This measure aims to support districts as they adjust to the formula changes and continue providing quality education.
Palmeri added that his Jackson school district is drastically underfunded. Based on the Adequacy Budget calculated by the NJ Department of Education and are below 23,783,329 BELOW ADEQUACY.
“We are frustrated that the state’s own guidelines for a district of our size are being diminished by the state itself. In addition, we were bracing for a $806,460 cut in our state aid in this last year of S2 and were notified in March that the cut will now be $4.4 million,” he said.
The situation underscores the complexities of reallocating school funding to address historical inequities while also ensuring that no district is left financially vulnerable. The ongoing adjustments to the S2 formula and the supplemental funding efforts are crucial steps towards stabilizing school finances and maintaining high educational standards across all New Jersey districts.