LACEY TOWNSHIP, NJ — Hundreds of concerned parents and students packed Lacey Township High School on Wednesday night as the Board of Education met to address the district’s escalating financial crisis, driven by steep cuts in state aid under New Jersey’s S2 funding formula.
The overflow crowd, spilling into the school’s theater to watch a live stream of the meeting, voiced alarm over proposed measures that could reshape the district, including the sale of an elementary school, elimination of sports and extracurricular programs, and significant staff layoffs.
The S2 funding formula, enacted in 2018 under Governor Phil Murphy to equitably redistribute state aid, has hit Lacey Township hard. The district lost $3.2 million in state aid for the 2024-25 fiscal year—a 30.62% reduction—leaving it with just $7.26 million. Since 2018, Lacey has seen over $6 million in aid slashed, including a $4 million cut in 2023-24 alone. These reductions have strained the district’s $77.6 million budget, forcing officials to consider drastic steps to close the gap.
Among the most contentious proposals is the potential sale of one of the district’s four elementary schools, coupled with a plan to redistrict students by grade level. The board is also weighing the elimination of all sports, after-school clubs, and field trips, alongside cuts to bus services that transport students across busy Route 9. Teacher layoffs are another looming threat, with class sizes in some grades potentially ballooning to nearly 40 students.
“These cuts are heartbreaking,” said one parent at the meeting, who asked to remain anonymous. “Our kids deserve better than losing their teams, clubs, and safe transportation.” Social media rumors about the severity of the proposals spurred the large turnout, with residents demanding transparency and solutions to preserve the district’s offerings.
Lacey Township is not alone in its struggles. The S2 formula has sparked controversy across New Jersey, with districts like Toms River and Brick also facing multimillion-dollar aid reductions, leading to similar program cuts and tax hikes. In 2022, Lacey’s school taxes, which account for 61.1% of the township’s property tax burden, were set at a rate of 1.382, adding pressure on local homeowners.
School officials expressed frustration but emphasized the need to balance the budget. “We’re doing everything we can to minimize the impact on students, but the state aid cuts leave us with impossible choices,” a board member stated during the meeting.
