JACKSON, NJ – New Jersey Governor Phil Murphy and his administration are touting their success with the S2 school funding formula. Still, that formula has made it almost impossible for one New Jersey school district to provide a quality education to its children.
“It’s hard for us to properly and thoroughly educate these students,” according to one school board president in a district being torn apart by the Murphy administration’s flawed S2 funding formula.
Like Lakewood Township, Jackson Township has an extraordinarily high percentage of private school students and English as a Second Language (ESL) students.
Despite a drop in student enrollment, Jackson Township’s educational costs are increasing because the state has frozen funding for private school transportation and ESL programs, which have risen drastically in Jackson.
In a heartfelt address to the assembly committee, Jackson Board of Education President Giuseppe Palmeri raised critical concerns regarding the S2 funding formula. Palmeri highlighted the drastic reduction in state aid to the Jackson School District over the past seven years, resulting in a 50% cut despite a 15% decrease in student enrollment.
“S2 started seven years ago. The Jackson School District was receiving $46 million in state aid at the time. Seven years later, we are now receiving $23 million in state aid. That’s a 50% reduction in our aid. Our enrollment at the time was 8,100 students. We now have 7,700 students,” Palmeri said. “So, we had about a 15% reduction in our student enrollment with a 50% cut in our aid. The biggest issue with this, and I’m not pointing any fingers, I actually truly believe that the S2 funding formula was rolled out with the best intentions. I think that for some school districts, there was some success behind this, but for some, there was some opportunity. Unfortunately, we were one with the opportunity.”
Palmeri emphasized the funding formula’s detrimental impact, particularly on areas such as multilanguage learning and transportation for non-public students. Despite a significant increase in students needing these services, the S2 freezes have prevented additional funding, creating financial strain for the district.
“The S2 funding formula also freezes other areas. So, for instance, multilanguage learning. Our school district, seven years ago, had 655 students that were multilanguage learning. We now have 9,140. That’s a 49% increase. However, we do not get additional funding for them because of the S2 freezes. Our non-public students that require transportation, that we either transport or pay, has increased from 655 students to 5,584 students, roughly. That’s a 752 per increase. Our transportation category has been frozen for seven years, so we’re not getting any additional revenue for that,” he added.
Acknowledging efforts to mitigate the financial challenges, Palmeri noted eliminating staff and administrative positions and exploring cost-saving measures through audits. However, independent auditors and the Ocean County Superintendent concluded that Jackson faces a revenue problem rather than a spending issue.
“Two independent auditors came in over the last couple of years and took a look at our books to see where else could we cut, where else could we save. We also invited last year the Ocean County Superintendent. He came on in, he looked at our books, and they all came up with the same conclusion. They said Jackson does not have a spending problem, Jackson has a revenue problem. The Ocean County Superintendent advised us to take out a loan, a state loan, which we did this year for $10.3 million just to make ends meet. What comes with a state loan, as you’re all aware, is a state-appointed monitor. So, we have this monitor, very nice woman, she’s been appointed since January, and she looked over our books, and she said the same thing,” he added.
The Jackson School District’s financial struggles prompted the need to take out a state loan of $10.3 million, leading to the appointment of a state monitor to oversee spending. Paary underscored the monitor’s assessment that further budget cuts are untenable and emphasized the district’s urgent need for additional funding support.
Lawmakers were shocked by Jackson’s sharp increase in ESL and private busing needs and the state’s failure to address the matter.
Lakewood pays for the transportation of over 30,000 children. The Lakewood public school district pays over $30 million a year in transportation. Jackson’s costs are expected to surpass Lakewood’s private busing costs.
“We’re starting to see that, and it’s becoming unfeasible for us to afford. Now, we want to make sure that the 7,700 students that we have get the thorough and efficient education, but we also want to make sure that the 6,000 students that we have that are private school students, that they’re getting to and from school safely. We want to transport those students safely. We want to make sure that every student, public or private, can get to and from school safely and get the best education possible. But with this funding formula, it’s hurting us,” Palmeri said.
Committee members raised questions regarding the surge in non-public student transportation costs and the loan repayment process. Palmeri clarified that the district must repay the interest-free loan over ten years, with annual payments exceeding $1 million.
Despite efforts to manage the budgetary challenges, Paary stressed the necessity for adequate funding to maintain essential services and educational standards. The committee was urged to address the shortcomings of the S2 funding formula and provide support to alleviate the financial burden on the Jackson School District.