NEWARK, NJ – While suburban school districts slash programs, shutter schools, and explore bankruptcy, Newark Public Schools remain among the most well-funded systems in New Jersey — largely subsidized by taxpayers outside the city.
Newark’s $1.2 billion in state aid covers the majority of its school district budget, fueling rising frustration among suburban communities struggling to stay solvent.
Recent disclosures from critics, the media, and education advocates have renewed scrutiny of how the district, under Superintendent Roger León, manages those taxpayer dollars.
Spending under fire
According to state figures and public records cited by local officials, Newark Public Schools has spent lavishly on non-classroom expenses, including staff trips to destinations like Honolulu and Palm Springs, events with complimentary food and alcohol, and a $1.4 million consulting contract reportedly awarded to an uncertified contractor who never began the assigned work.
The district also paid millions over market value to purchase a former charter school building despite having multiple under-enrolled schools nearby.
Critics argue the spending comes as Newark’s test scores and learning recovery rates lag, even after receiving an additional $287 million in federal ESSER relief funds meant to combat pandemic learning loss.
Suburban fallout
Outside Newark, many school districts that contribute to the state’s funding pool are facing severe financial distress. In Ocean County, Toms River Regional Schools is considering unprecedented cost-saving measures, including land sales and discussions of potential bankruptcy.
Toms River even claimed it sold some of its campus trees just to make ends meet a few years ago.
They’re literally digging up trees and selling them for cash.
Nearby, the Jackson School District has already closed two schools and merged middle and high school programs due to budget deficits tied to reduced state aid. Other suburban districts have frozen hiring, eliminated extracurricular programs, and warned of teacher layoffs as they absorb cuts.
Uneven recovery
The funding disparity stems from New Jersey’s school aid formula, which directs a larger share of state dollars to lower-income districts like Newark under the Abbott decision mandates.
While that policy aims to ensure educational equity, critics say it has created a widening fiscal gap between urban and suburban communities.
León, who has led Newark’s schools since 2018, has defended the district’s spending as “necessary for staff development and student engagement.”
However, calls for audits and legislative review have grown louder, with state lawmakers signaling potential hearings on accountability and equitable funding distribution.
Key Points
- Newark Public Schools receive more than $1.2 billion in state funding, much of it from outside taxpayers.
- Spending reports include trips, events, and a $1.4 million consultant fee that produced no work.
- Suburban districts like Toms River and Jackson face closures and deep budget cuts.