New Jersey has fully implemented its revised public school funding formula, allocating state aid for the 2024-25 academic year. The plan brings major funding changes, with some districts experiencing significant increases while others face reductions. This variation stems from the new funding formula enacted in 2008 and fully implemented for the first time under Governor Phil Murphy’s proposed 2025 budget. The formula calculates funding based on factors such as district size, low-income and special education student enrollment, and various other considerations. Underfunded districts received additional aid after the formula’s initial implementation, while overfunded schools saw reductions nearly a decade later, kicking in with the 2024-25 funding plan. An analysis by NJ Advance Media reveals the formula’s impact on school districts county by county. Wildwood City School District in Cape May County faces the most significant percentage decline in funding, losing 80% compared to the 2007-08 school year. While Enrollment has decreased by 5.5% since then. However, Cape May City and Washington Township have experienced larger percentage declines in funding, though they do not operate their own schools, sending students to neighboring districts via agreements. Deal, an affluent Jersey Shore town in Monmouth County, has seen the most substantial increase, with a substantial funding boost of 1,756% alongside a 47% enrollment growth. The district participates in the state’s Interdistrict Public School Choice Program. Enrollment is one factor in the funding formula, which also considers each student’s age, economic background, special education status, English language learner status, and local school tax revenues. The state provides a minimum of $12,400 per student, with adjustments based on student demographics and other factors, allowing districts to receive increased funding despite declining enrollment. The Murphy administration’s proposed funding numbers are still preliminary, and the final budget must be approved by the state legislature and signed by the governor before being finalized.
NJ’s New School Funding Formula: Winners and Losers
