Toms River, NJ — A school district that warned it was nearing financial collapse last year has now approved a $306 million budget and a new contract that will raise its superintendent’s pay to more than $308,000—while local taxpayers face another increase. Despite selling off properties and even trees to manage past budget shortfalls, the district ignored the majority consensus of the township and voted for the historic pay increase.
The Toms River Regional Board of Education voted Wednesday to adopt the 2026–27 budget, which includes a 4.9% tax levy increase, and separately approved a five-year contract for Superintendent Michael Citta that raises his salary from about $228,000 to $275,000 immediately, with scheduled increases reaching $308,012 by 2030. That would be a 35% raise from today to the fifth year of the contract.
The decisions come after two years of budget standoffs with the state and ongoing warnings about funding shortfalls tied to New Jersey’s school aid formula.
After the contract was approved, the audience, filled with teachers and staff erupted into applause that lasted several minutes.
During the vote, Board President Ashley Lamb, KatieCoyne, Jennifer Howe, Lisa Contessa and Kevin Kidney voted yes.
Marisa Matarazzo cast the lone no vote.
Due to personal conflicts involving school employees and family members, Kathy Eagan and Joseph Jubert abstained.
The vote passed 5-1.
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Key Points
• Toms River approves $306M school budget with 4.9% tax increase
• Superintendent contract raises pay from $228K to $308K by 2030
• Board cites state pressure after prior budget rejections were overridden
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Superintendent raise draws scrutiny
The board’s approval of Citta’s new contract has become a focal point, arriving as residents face higher taxes and the district continues to cite financial strain.
The deal includes:
- A retroactive salary increase to $275,000 for 2025–26
- Annual raises of 2.5% to 3%
- A final salary exceeding $308,000
- Mileage reimbursements
Some residents questioned the timing.
“They can’t afford these raises,” said South Toms River resident Diane Ricardielli, pointing to the impact on seniors living on fixed incomes.
Others defended the compensation, citing the demands of the role and comparisons to other districts.
“It is 24-7, it is a thankless job,” said district employee Jamie Tesoro. “I don’t think anybody realizes everything that Mr. Citta has to deal with.”
Funding formula dispute continues
District officials repeatedly pointed to New Jersey’s school funding system as the root of the problem, arguing Toms River has lost significant aid over time due to changes under the state’s S2 formula, however that funding change has been sparked by declining enrollment in the district and the state increase Toms River’s funding in 2026 by 6%.
Toms River will receive $29,871,392 in state aid this year, according to the New Jersey Department of Education.
Superintendent Citta said he inherited a system already deep in deficit. Citta served as assistant superintendent under former Superintendent Michael Ritacco, who was convicted and sentenced to prison on federal bribery charges.
Board members and local officials argue that while aid increases are capped—often at 6% annually—losses in prior years have created persistent gaps.
Local frustration over taxes and planning
The tax increase varies by municipality, with some areas seeing higher impacts. Pine Beach Mayor Lawrence Cuneo criticized both the increase and the district’s long-term planning.
“Not preparing knowing what is coming is inexcusable,” Cuneo said.
Residents also raised concerns about the district selling property while continuing to raise taxes. Krista Whittaker of South Toms River questioned the approach: “We keep raising taxes, selling off our property, and we still can’t manage this budget.”
Board leadership responded that sold properties remained in public ownership, as they were purchased by other government entities, meaning no taxes will be collected on those properties to benefit school funding.
A district under financial strain
The approved budget includes both operating expenses and debt service tied to past capital projects, including $147 million in voter-approved improvements from 2019. Officials say the district’s financial challenges are structural, not temporary—driven by a combination of reduced state aid, rising costs, and limits on how quickly funding can increase.
Board members framed the decision as a tradeoff between higher taxes and deeper cuts.
“It’s even more unfair to ask kids to take the hit,” said board member Kevin Kidney.
