Trenton, NJ — Two Republican state senators are pressing Gov. Mikie Sherrill to reverse proposed limits on school funding, warning that districts across New Jersey are already cutting programs and raising property taxes as they finalize budgets.
Sen. Declan O’Scanlon (R-Monmouth) and Sen. Carmen Amato Jr. (R-Ocean) sent a letter urging the governor to immediately restore uncapped, formula-driven school aid increases and update revenue projections to reflect stronger-than-expected tax collections. Without quick action, they argue, schools will lock in reductions that could have been avoided.
The request comes as districts face deadlines to adopt budgets for the upcoming school year, with many already adjusting spending based on the governor’s proposal.
Lawmakers say aid caps block funding schools are owed
At the center of the dispute is the administration’s decision to continue capping increases in school aid, even for districts that would otherwise receive larger boosts under the state’s funding formula.
The senators argue that policy deprives schools of money they are legally entitled to receive.
“When many of those same districts were finally due for an increase under the formula, the [administration] arbitrarily decided to cap their aid increases at 6%, depriving them of dollars that they are entitled to under current State law,” the lawmakers wrote.
They are asking the administration to notify districts that those caps can be lifted and allow school officials to revise budgets before adoption deadlines.
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Key Points
• GOP senators urge immediate restoration of uncapped school aid increases in NJ
• Lawmakers cite higher-than-expected tax revenue and cost-saving proposals
• Districts warn of program cuts and property tax hikes without changes
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Revenue outlook and spending choices under scrutiny
The letter points to improving state revenue projections as a key reason the administration could afford to increase school funding.
According to the lawmakers, the Office of Legislative Services has already projected about $200 million more in revenue than the governor’s budget forecast. They also cite strong income tax collections following the April 15 filing deadline as a potential source of additional funds.
Under the New Jersey Constitution, certain revenue—particularly from income taxes—must be directed toward education and property tax relief.
The senators argue that, combined with cost-saving measures, those funds could fully restore school aid increases.
GOP proposals target spending and “unused balances”
In a previous letter sent earlier this year, Republican members of the Senate Budget and Appropriations Committee outlined nearly a dozen proposals to address what they describe as a $4 billion structural imbalance in the state budget.
Among their suggestions:
- Redirecting hundreds of millions of dollars in unspent balances from prior appropriations
- Eliminating or reforming policies they describe as wasteful
- Identifying ways to increase revenue without raising taxes
They argue those steps would free up funding for schools without expanding overall spending.
“There remain hundreds of millions of dollars in unspent [funds] in State accounts… that could be redirected to fair school funding increases,” the letter states.
Timing becomes critical for school districts
The lawmakers emphasize that timing is a central concern. School districts must finalize budgets in the coming weeks, and delays in state decisions could limit their ability to adjust.
“If you wait until late May or June… it will be too late to help schools that are currently in the process of cutting critical programs or needlessly raising property taxes,” the senators wrote.
They also warned that additional revenue, if not directed toward schools, could instead be used for other spending priorities.
Ongoing debate over school funding approach
New Jersey’s school funding formula has long been a source of political tension, particularly as some districts have seen repeated reductions while others receive increases.
The administration has defended its approach in past budget cycles as an effort to balance fairness, fiscal responsibility, and predictability in aid distribution. Lawmakers pushing for changes argue that strict caps undermine the formula itself.
The current dispute highlights a broader question: whether the state should prioritize adhering to the funding formula in full or continue moderating increases to manage budget constraints.
What happens next
The governor’s office has not publicly responded to the senators’ latest request. Any revisions to school aid would need to be incorporated before the state budget is finalized in June.
Districts, meanwhile, continue moving forward with budget decisions based on current projections.
Current status: No changes to the proposed school aid caps have been announced, and school districts are proceeding with budget adoption under existing funding levels.
Keywords: New Jersey school funding, state budget, property taxes, education aid
