Even the hometown of New Jersey’s governor is grappling with the consequences of the state’s controversial S2 school funding formula as voters decide whether to approve millions in emergency funding. Montclair, NJ – Even the hometown of Gov. Mikie Sherrill is not immune to the financial pressures tied to New Jersey’s school funding formula, as Montclair Public Schools faces a multimillion-dollar budget crisis now heading to voters.
Residents in the Essex County township went to the polls Tuesday to decide whether to approve two tax questions that would raise a combined $17.6 million to stabilize the district’s finances and cover existing deficits.
Key Points
• Montclair schools are facing a $12.6 million deficit from the 2024–2025 school year.
• Voters are deciding on two tax proposals totaling $17.6 million to stabilize the district’s finances.
• Early vote-by-mail results show a tight race, with 49% supporting the measure and 51% opposed.
Tight vote as district seeks emergency funding
The special election asks voters to approve two separate funding proposals.
The first question would raise $12.6 million through a one-time tax increase to pay off debts carried over from the previous school year.
The second proposal would raise $5 million through a permanent tax levy increase to support operating costs such as staffing, maintenance, and school programs.
Early vote-by-mail results suggest the outcome could be close, with 49% voting in favor and 51% opposed, according to preliminary counts.
District already implemented significant cuts
School officials say the district has already implemented about $2.8 million in cuts this year in an effort to reduce the deficit. Those reductions included eliminating or reducing dozens of positions across the district, including counselors, curriculum support teachers, technology teachers, paraprofessionals, and administrative staff. Other cuts affected contracts, travel spending, and certain support programs.
Despite those steps, officials say the district still faces a projected $5 million deficit for the current school year.
Major cost drivers include transportation and benefits
A district review found several factors contributed to the financial crisis, including under-budgeted expenses and a lack of internal financial oversight in prior years.
Among the largest drivers of the $12.6 million deficit were transportation costs, teacher salaries, employee benefits, utilities, and out-of-district tuition payments.
The district also cited issues such as delayed bill payments, hiring that exceeded the approved budget, and outdated financial systems.
More cuts possible if voters reject proposals
If voters reject the ballot questions, officials say the district could be forced to make an additional $10.6 million in cuts for the 2026–2027 school year.
Potential impacts could include reductions to athletics, extracurricular programs, transportation services, and staffing. School leaders also warn that the district could be placed under the oversight of a state financial monitor, who would have authority over spending, staffing decisions, and budget controls.
Structural funding pressures remain statewide
Like many school districts in New Jersey, Montclair officials say they face a structural deficit, where costs are rising faster than revenue.
While state law generally limits school tax increases to 2% annually, expenses such as health insurance, transportation, and out-of-district tuition have been increasing at significantly higher rates. District projections estimate health insurance costs could rise 10% annually, while transportation expenses may increase 7% per year.
