TOMS RIVER, N.J. — After years of selling off assets, clearing trees from school property and warning residents about deep financial instability, the Toms River Regional School District has approved a new contract that could raise Superintendent Michael Citta’s pay to more than $308,000 — a move intensifying criticism over the district’s spending priorities as taxpayers continue absorbing rising school costs.
The district has said it is in a dire financial situation and last year said it would have to file for bankruptcy. That dire situation remains, but residents are now wondering why the school board just approved a $308,000 contract for the superintendent who has been at the helm during the crisis.
The contract, approved as the district faces ongoing structural deficits tied to major state aid cuts, increases Citta’s salary from $228,159 to a retroactive base of $275,000 before climbing to a final salary of $308,012. The deal represents an immediate increase of roughly 20.5% and a total jump approaching 35%.
The approval comes after years of desperate emergency-style budget decisions that turned Toms River into one of New Jersey’s most closely watched school funding battles.
District Spent Years Selling Assets to Close Budget Gaps
Since 2017, Toms River Regional officials say the district has lost more than $60 million in state aid under New Jersey’s S2 school funding formula, triggering repeated rounds of cuts, restructuring and increasingly controversial efforts to raise revenue.
Among the most symbolic moves was the district’s decision to authorize timber harvesting and tree clearing on school-owned property to help offset budget shortfalls.
Residents and environmental advocates criticized the plan as a sign of financial desperation, arguing the district had reached the point of monetizing green space to stay afloat.
The district also closed and sold multiple school buildings, moved to sell administrative properties and reduced staffing and programs while repeatedly warning that state funding reductions had created an unsustainable financial model.
At the same time, the district continued making payments tied to a $147 million voter-approved capital referendum passed in 2019.
Critics now argue the superintendent’s raise clashes sharply with the austerity measures imposed elsewhere throughout the district.
Key Points
• Toms River Regional says it has lost more than $60 million in state aid since 2017
• District previously approved tree harvesting, property sales and program cuts to balance budgets
• Superintendent Michael Citta’s new contract could raise his salary to more than $308,000
Tax Increases and Executive Raises Collide
The superintendent contract arrives as residents across Toms River, Beachwood, Pine Beach and South Toms River continue facing higher school taxes tied to repeated budget crises.
In 2024, the district proposed a nearly 9.9% tax increase before the state ultimately imposed a budget after the school board rejected it.
In 2025, district officials proposed another major increase of roughly 12.9%. The board again refused to approve the plan, leading to additional state intervention and warnings that the district could face severe operational consequences without a balanced budget.
This year,. taxes are up once again after the board approved a 4.9% tax increase — the first district budget approved locally in three years. Officials said concerns about further state intervention played a major role in the decision.
Over roughly five years, residents in the district’s municipalities have seen school taxes rise by an estimated 20% to 30% depending on location and property values in and around Toms River.
For critics of the superintendent contract, the timing has become the central issue.
Residents opposing the raise have argued during public meetings that taxpayers are being asked to absorb higher bills while district leadership receives substantial compensation increases.
Some residents specifically pointed to seniors and fixed-income homeowners who have struggled with rising costs across Ocean County.
Others questioned whether the district’s long-term financial planning has been effective after years of emergency budget measures, asset liquidation and repeated state intervention.
Board Supporters Cite “Crisis Leadership”
Supporters of Citta’s contract argue the district’s financial turmoil did not originate under his leadership and say replacing him during an extended funding crisis could create even greater instability. It’s like a husband in a struggling family financial situation taking extra beer and bowling money out of the bank because he’s been the one balancing the checkbook while he didn’t have a job and stuggled to pay the bills.
Board members and supporters have described the superintendent’s position as a high-pressure, around-the-clock role complicated by state mandates, shrinking aid and intense public scrutiny. There was one exception.
The Toms River Regional Board of Education approved Superintendent Michael Citta’s new contract in a 5–1 vote, with board member Marisa Matarazzo casting the lone vote against the measure. Board members Kathy Eagen and Joseph Jubert abstained due to conflicts of interest, while Joseph Capone was absent from the meeting. The remaining board members voted in favor of the contract, which includes a significant salary increase over the next five years.
They also argued the revised contract keeps compensation more competitive with other large New Jersey school districts.
The district has repeatedly maintained that the core financial problem stems from the state’s school funding formula rather than local spending decisions alone.
Under the S2 funding law, Toms River Regional experienced some of the largest aid reductions in the state over several years. District officials have argued subsequent aid increases failed to recover earlier losses or keep pace with inflation, staffing costs and operational expenses. That was based on enrollment, which has been in a steady decline. School aid funding is based on the number of enrolled students.
State officials, however, have defended the funding formula as a more equitable distribution model designed to direct aid toward districts with greater financial need. They also noted that the district’s funding is being restored, giving the district more money in 2026 than they received in 2026.
That conflict — state funding policy versus local taxpayer burden — now sits at the center of nearly every major decision facing the district.
Public Trust Becomes New Battleground
The controversy surrounding Citta’s contract reflects a broader erosion of trust between residents and district leadership after years of fiscal warnings and increasingly visible cost-cutting measures.
What once appeared unthinkable — selling trees, closing schools and liquidating properties to stabilize finances — became normalized as the district struggled to balance budgets.
Now, opponents argue the superintendent raise sends a conflicting message about sacrifice and priorities.
The debate also arrives as many New Jersey districts continue grappling with funding shifts, inflation pressures and taxpayer resistance to large annual increases.
Toms River’s situation stands out because of the scale of both the aid reductions and the district’s public response to them.
The district remains operational, but the larger financial dispute remains unresolved. Officials continue warning that without long-term funding stability, future budgets could bring additional cuts, tax pressure or renewed conflicts with the state.
Current district leadership has not indicated any reversal on the approved superintendent contract.
