LAKEWOOD, N.J. — Families in Lakewood Township whose children live close enough to school that transportation is not required by state law are facing a sharp increase in busing costs for the upcoming school year after the state reduced municipal aid that had helped subsidize the program.
Rules are rules. For years, the state had made an exception for Lakewood, paying to bus students who live within 2.5 miles of their school. In neighboring towns, those students have historically had to walk to school, or busing was provided at the expense of the district.
In Lakewood, the municipality helped pay the bills, but facing its own budget crisis, it no longer will, so rates are increasing nearly three times this year for many.
According to a notice issued Thursday by the Lakewood Student Transportation Authority (LSTA), students classified as “non-mandated” for transportation purposes will no longer receive the township-funded subsidy that has reduced transportation costs for the past decade.
The change affects only Lakewood students and does not apply to students residing in Howell, Jackson, or Toms River who attend schools in Lakewood, unless those students live within 2.5 miles of the new Cheder School, operating out of the former McAuliffe Middle School.
Under New Jersey law, elementary students living within two miles of school and high school students living within 2.5 miles are generally not entitled to taxpayer-funded transportation.
LSTA said the state will continue funding transportation for students who qualify for mandatory busing under those distance requirements. However, officials said reduced municipal aid has eliminated the township subsidy that previously helped cover transportation for non-mandated students.
As a result, the full transportation cost for some students could reach $1,177 per seat for the 2026-27 school year. LSTA said it has reduced that amount to $945 per child through operational efficiencies, but emphasized the reduction no longer comes from township subsidies.
The authority said the subsidy had been available for approximately 10 years through a partnership between Lakewood Township and LSTA.
“The State has significantly reduced its municipal aid funding for Lakewood Township,” the notice states. “As a result, the Township subsidy that helped fund this program for the past decade has been eliminated.”
The transportation authority said future pricing will depend on available funding and operating costs in future school years.
The announcement comes as Lakewood continues to operate one of New Jersey’s largest and most complex student transportation systems, serving both public and nonpublic schools throughout the township.
Who is affected by the change?
The increase affects Lakewood students classified as non-mandated for transportation—generally elementary students living within two miles of school and high school students living within 2.5 miles.
How much will families pay?
LSTA said transportation could cost up to $1,177 per student, though it has reduced the price to $945 for the upcoming school year through operational efficiencies.
Does this affect neighboring towns?
No. The notice states the changes apply only to Lakewood students and do not affect students living in Howell, Jackson, or Toms River who attend schools in Lakewood.
Lakewood families with children who do not qualify for mandatory transportation under New Jersey law will see substantially higher bus costs this school year after the elimination of a township-funded subsidy tied to reduced state municipal aid.
