TOMS RIVER, N.J. — The Toms River Regional School District is warning of potential summer school cancellations and exploring Chapter 9 bankruptcy as it faces a multimillion-dollar budget shortfall, despite increases in state aid elsewhere.
According to a proposed 2025–26 district budget, Toms River is operating on an estimated per-pupil expenditure of just under $20,000 — among the lowest in the state for large districts. New Jersey’s state average per-pupil spending is estimated between $20,000 and $22,000, with districts like Newark reportedly exceeding $37,000 per student.
The budget crisis has forced Toms River School District (Not the municipality) to consider raising local property taxes by nearly 13% to maintain summer instruction programs for struggling students. Without the increase, district officials say the summer school program could be shut down entirely.
The district has already eliminated 250 staff positions, sold multiple buildings, and increased class sizes in prior years to manage funding constraints. Local officials say the current funding formula has disproportionately impacted suburban districts like Toms River.
“This is what happens when you destroy local control and force-feed a failed Democrat funding formula down every district’s throat,” said New Jersey Assemblywoman Dawn Fantasia in a post on social media.
While the state has touted a fully funded school formula and expanded preschool offerings in urban areas, Toms River officials argue the funding structure has failed to address the needs of their district.
A final decision on the budget and tax increase is expected later this summer.