New Jersey has released its 2025-26 school aid numbers, providing districts with a clearer picture of their funding for the next school year.
The Department of Education announced that 392 out of the state’s nearly 600 school districts will see increases, while 175 districts will receive less funding than last year.
Governor Phil Murphy’s budget proposes $12.1 billion for K-12 education, the highest in state history.
This amount includes a $386 million increase over last year’s budget, fully funding the state’s school funding formula for the second year in a row.
However, changes have been made to how funding is calculated.
The state has now placed a 6% cap on funding increases and a 3% limit on cuts to help districts plan budgets without major swings in aid.
Additionally, special education costs will be calculated using actual district expenses instead of state averages, and district wealth will now be based on three-year property value averages instead of just one year.
- Nearly 68% of school districts (392 total) will receive increased state aid, while 31% will see cuts, with a maximum reduction of 3%.
- Aid calculations now use actual special education costs instead of averages and three-year wealth and property averages instead of single-year data.
- State aid increases are limited to 6%, while cuts are capped at 3%, aiming to reduce district budget uncertainty.
Districts Receiving the Highest Increases
A total of 392 school districts will receive more aid than last year.
Newark Public Schools will see the largest dollar increase, gaining $75 million, bringing its total state funding to $1.326 billion.
Other districts receiving significant increases include:
- Trenton City Schools, increasing $22.6 million, reaching $399.7 million.
- Paterson City Schools, increasing $35 million, reaching $618.6 million.
- East Orange Schools, increasing $9.3 million, reaching $184.6 million.
- Elizabeth City Schools, increasing $14.2 million, reaching $597.4 million.
- Camden City Schools, increasing $20.9 million, reaching $369.7 million.
Several smaller districts will see the highest percentage increases.
The largest percentage increase goes to Beach Haven in Ocean County, with a 19.3% increase, raising its total aid to $414,893.
Other notable percentage increases include:
- Central Regional School District (Ocean County), increasing 18%, with a total of $6.57 million
- Franklin Township (Hunterdon County), increasing 16.1%, with a total of $555,956
- Deal (Monmouth County), increasing 15.9%, with a total of $3.023 million
- Frenchtown (Hunterdon County), increasing 15.2%, with a total of $346,898
Districts Facing Reductions
On the other hand, 175 school districts will see less aid compared to last year.
The biggest dollar reduction is in Jersey City Schools, which is losing $4 million in funding, bringing its total to $129.6 million.
The district with the largest percentage cut is Cape May City Schools, which is losing 27.3% of its funding, reducing aid by $444,752 to $1.185 million.
Other districts seeing reductions include:
- Califon in Hunterdon County, down 7.8%
- Colts Neck in Monmouth County, down 4.9%
- Laurel Springs in Camden County, down 3.5%
While these cuts may seem small compared to past years, districts that relied on higher funding could still face budget challenges.
Changes in the School Funding Formula
The way New Jersey calculates school aid has also changed this year.
One of the biggest updates is that special education funding is now based on actual district costs instead of using statewide averages.
This change ensures that districts with higher numbers of special education students receive more appropriate funding, as opposed to relying on estimates that don’t always match actual expenses.
Another change affects how district wealth is measured.
The state will now average data over three years rather than using one year of property values and income.
This adjustment is meant to smooth out funding shifts caused by sudden economic changes in a district, providing more stability for school budgets.
Additionally, the budget includes more funding for mental health services and school security, recognizing the growing need for counselors, social workers, and security improvements.
State Officials Respond to the New Plan
Education Commissioner Kevin Dehmer explained that these changes came after years of feedback from school superintendents and education advocates.
Superintendents had also requested earlier notice of aid amounts, so the state released a preliminary funding floor in February to help districts plan for the worst-case scenario.
While some education leaders support these changes, Danielle Farrie from the Education Law Center believes the 6% cap on increase limits the state’s ability to fix funding inequities.
Implementation and Next Steps
Murphy’s budget proposal must now go through the state Legislature for approval.
The new fiscal year begins on July 1, 2025, and districts must finalize their budgets based on these state aid figures.
Districts that hold school elections in April must submit their budgets by March 7, while those with November elections must finalize budgets by March 19.
Although this year’s school funding plan offers more predictability than in past years, districts still face challenges such as inflation, rising special education costs, and school building repairs.
Governor Murphy has proposed $50 million for school construction, but some groups argue this is far too little.
The Schools Development Authority estimates that $7 billion is needed to renovate or replace aging buildings in high-poverty districts.
For now, schools will have to make the best use of their allocated funding.
While the new formula aims to bring more fairness and stability, how districts will adjust their budgets in the coming months remains to be seen.
