Toms River Schools Facing $8.1M State Aid Cut For 2021-22

TOMS RIVER, NJ — While Gov. Phil Murphy’s proposed $44.8 billion budget contains an increase in state aid to schools, the Toms River Regional School District is looking at a cut of $8.1 million for the 2021-22 school year, the steepest cut the district has seen since 2010.

The cut is part of the ongoing reduction in aid to the Toms River schools under S2, the law that enforced cuts in so-called adjustment aid to districts that have been deemed to not be paying their local fair share of property taxes.

The cut, which was anticipated, represents a 14 percent reduction from the 2020-21 state aid amount, district officials said.

“Obviously, this is an alarming number to see on paper, and it’s unfortunate to say the least to be in this position,” Interim Superintendent Thomas Gialanella said.

“We’ve been working closely with the state and the New Jersey Department of Education to mitigate the effect of our anticipated losses, and we remain confident that we can reach a resolution that will not do irreparable harm to our district next year and beyond,” Gialanella said.

The district now is working with the aid number to see how much it will have to cut from the 2021-22 school budget. Under S2, the district is required to increase its property tax levy by the 2 percent maximum allowed under a state law that allowed school districts to move their annual elections to November.

That 2 percent increase is required because the Toms River schools are “under adequacy,” meaning the district is spending less per pupil than the state says is required for a thorough and efficient education.

The 2020-21 property tax levy was $161,163,178, which means the levy will increase $3.2 million for the 2021-22 general operating budget. That will leave about a $5 million gap, and that is before figuring in any increases in expenses, such as purchases to meet coronavirus safety requirements, changes in the health benefits structure, and any increases or decreases in energy costs, transportation and how much surplus and reserve money can be used to fund the budget.

The district’s general fund budget for 2020-21 is $228,677,345, and the total budget, including debt service, is $252,338,909. That debt service includes the cost of the $147 million in bonds for the facilities repairs, renovations and upgrades that are going on throughout the district.

“We are now working through the numbers to ascertain how much we will need to reduce the budget since we have the actual aid figures,” business administrator William Doering said.

Though S2 initially targeted adjustment aid, the district only received $68,904 in adjustment aid in the 2020-21 school year — meaning the 2021 cut is reducing equalization aid.

Proponents of S2 had lobbied to cut the adjustment aid in one fell swoop, saying it was a temporary measure put in place when the School Funding Reform Act took effect in 2008. Districts across the state had their aid slashed in 2010-11 by then-Gov. Chris Christie, with Toms River taking a $9.8 million cut then.

The district’s state aid has fallen from $71,972,480 million in the 2009-2010 school year to a proposed $49,724,966, a cut of more than $22.25 million, or nearly 31 percent.

S2 proponents have long said Toms River was overfunded, citing items such as Chromebooks in the district’s classrooms and iPads or other tablets for younger students — many of which initially were purchased through fundraising efforts of the district’s parent-teacher organizations.

The district is not at a 1-to-1 ratio of devices to students, though it expects to reach that capability by the end of the school year thanks to federal funding provided through the Coronavirus Aid, Relief, and Economic Security Act and New Jersey’s Digital Divide funding. That money is being used to purchase additional devices to ensure every student has an internet-capable device, regardless of income. About 4,600 of the district’s 15,000 students receive free and reduced lunch because they are from low-income families.

“I have seen the numbers released regarding state aid, and I echo Superintendent Gialanella’s sentiments that $8.1 million in losses is a supremely difficult number to comprehend right now,” said Joseph Nardini, school board president. “We’ve been in this fight — a leader in this funding fight, alongside dozens of other affected districts — for years now, and while this latest news is not entirely unexpected, it serves as more evidence that incurring these cuts year after year is simply unsustainable, as well as unjustified.”

“We are indeed, however, working closely with the state, and I am optimistic that we will find a way to move forward and forge a financial path that honors the future and well-being of our students, this district, and the greater Toms River community,” Nardini said.

The district has been part of two lawsuits against the state Department of Education, one that sought release of the algorithm the state uses to determine the local fair share figures, which say how capable a district is of paying for its public schools, and a second one over the distribution of the aid. The state released the algorithm but an expert has to be hired to determine how the algorithm is applied.

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