JACKSON, N.J. — If getting a quality education in New Jersey’s rural communities is your primary concern, perhaps New Jersey isn’t the state for you.
A Jackson Township councilman is calling for legal action against the New Jersey Department of Education after the state approved a $65 million loan to the Lakewood School District while Jackson schools face deep budget cuts.
Councilman Giuseppe Palmeri criticized the funding decision, arguing that it highlights ongoing inequities in the state’s school aid distribution. The new loan brings Lakewood’s total state loan debt to over $230 million, while Jackson struggles with an $18 million budget deficit that has already forced painful reductions, including the closure and sale of Sylvia Rosenauer Elementary School and the elimination of 70 staff positions.
Palmeri blamed the crisis on New Jersey’s controversial S2 funding formula, which he said has disproportionately impacted Jackson. According to Palmeri, Jackson has lost 50.1% of its state aid despite only seeing a 15.5% decrease in enrollment. He said this has left the district scrambling to maintain basic educational services, while other districts receive substantial state financial assistance.
Last year, Murphy gave advice to districts like Jackson, “You have to start closing some schools.”
Not only has Jackson already closed and sold one school, they are cutting programs, teachers and are ready to announce the closure of another school and are already planning on selling two more schools, including a brand new high school and a blue ribbon middle school.
At the last board of education meeting, board members grappled with the prospect that the district will eventually have to sell Jackson Liberty High School and McAuliffe Middle School, opting to keep a nearly 80 year old high school, Jackson Memorial on the books because, “We can get more money for Liberty,” as one school board member suggested.
“It is unacceptable that while some districts receive massive financial assistance, Jackson is left to fend for itself, forcing devastating cuts to our schools,” Palmeri said. He called on Governor Phil Murphy and the New Jersey Department of Education to provide immediate, unconditional financial relief to Jackson schools to prevent further disruptions to students and staff.
Last year, the Jackson Board of Education authorized its attorney to explore legal action against the state in response to school funding cuts but ultimately did not proceed with a lawsuit. However, Palmeri said the state’s latest decision to provide additional financial assistance to Lakewood while Jackson struggles to stay afloat leaves no alternative but to take legal action.
“Given this latest development, I believe there is no other choice but to file legal action against the New Jersey Department of Education,” he said, pledging his full support as a councilman to any legal efforts to challenge the funding disparities.
The S2 funding formula, enacted in 2018, was designed to phase out so-called “adjustment aid” to districts that were receiving more funding than their enrollment levels and local tax contributions justified. However, critics argue that the formula does not account for the full financial realities of growing communities like Jackson, which has seen significant population shifts and rising operational costs.
Meanwhile, Lakewood’s repeated state loans have drawn controversy, with critics pointing out that the district has long faced financial instability due to the high costs of busing private school students. While the state provides financial assistance to keep Lakewood schools solvent, officials in Jackson and other impacted districts argue that their communities have been unfairly burdened by cuts.
Palmeri’s call for legal action underscores growing frustration among local officials who say New Jersey’s funding system is failing to provide fair and adequate support to all districts. With budget deficits forcing school closures and layoffs in Jackson, the debate over education funding is likely to intensify in the coming months.