Senator Declan O’Scanlon of New Jersey is set to introduce a bill aimed at restoring full funding to school districts that have experienced net losses in State aid from fiscal year 2018 to 2025. This proposed legislation seeks to eliminate the existing 6% cap on aid increases for these districts for fiscal year 2026.
“The Governor’s arbitrary 6% cap on school aid increases is extraordinarily unfair, especially after his administration repeatedly committed to fully following the aid formula…when these districts were LOSING $!,” stated Senator O’Scanlon. He emphasized that many school districts, including Middletown, would receive significant funding increases if not for this cap. “I’m introducing legislation to restore full funding to those districts that have suffered from State aid cuts, ensuring they get the resources they need to provide a quality education for their students without being held back by politically driven limits.”
In recent years, numerous school districts across New Jersey have faced substantial cuts in State aid under the S-2 formula, which has placed a financial burden on local communities. Instead of addressing these challenges, the Governor has implemented a 6% cap on increases in key categories of school aid under the FY 2026 budget proposal.
For instance, Middletown Township should be eligible for an increase of nearly $3 million in State aid according to the formula but is limited to only an $840,000 increase due to the cap. This results in a difference of more than $2 million between what the district is currently receiving and what it should receive under the formula.
Last week, Senator O’Scanlon criticized the Murphy administration’s continued lack of reform in school funding following news that Middletown Township School District might close buildings due to funding cuts.
“It should be noted that there is urgency here,” said O’Scanlon. He urged Democratic leaders in the legislature to oppose this policy immediately so that “the DOE can recalculate state school funding numbers now” and help impacted districts avoid severe educational quality impacts.
