Will NJ schools rescue package be enough to avert layoffs, sports and program cuts?

A pared down funding bill that could provide some relief to New Jersey schools passed through the state Senate on Monday, sending hope to some school administrators faced with massive layoffs and cuts to programs in September.

Assembly bill A4161 was approved by both houses of the state Legislature on Monday and brings $44.7 million in relief to schools facing declines in state aid for the 2024-25 school year.

The final bill was a whittled down version of an earlier $71.4 million spending proposal.

For schools considering eliminating sports, clubs and teaching jobs, the aid package is too small, Sen. Declan O'Scanlon Jr. told the state Senate on Monday morning. Just among Jersey Shore schools, the state cut $10.4 million in aid to Long Branch schools, nearly $4.5 million to Jackson schools, $4.4 million to Neptune Township schools, and nearly $4.2 million to Asbury Park schools this year.

In all, 140 New Jersey school districts had cuts to their state aid.

School districts cannot easily make up the difference by raising taxes, because of a state-mandated 2% cap on annual tax levy increases.

O'Scanlon, who represents towns in northern Monmouth County, described the bill as a "Band-Aid."

State aid plunges, tax hikes capped: Big layoffs might be forced on Jersey Shore schools

"It refunds, or gives back, pennies on the dollar to these districts that have lost millions and millions of dollars," he told the Senate. "It provides for massive tax increases on the beleaguered… property taxpayers in many of these districts. It is a solution that is outrageously flawed to those taxpayers."

Under the bill, school districts that have had aid cut may exceed the 2% cap on their annual tax levy increases for the 2024-25 school year. The bill allows these schools to raise local taxes by the amount of state aid that was cut over the past four years, but by no more than 9.9% of the local tax levy.

Under typical circumstances, the tax levy cap can only be surpassed with approval from local voters.

The bill also provides aid grants to recover much as 45% of the value of the district's state aid reduction, down from 66% in earlier versions of the bill.

Legislators are "holding the futures of kids in Brick and Toms River captive," Assemblyman Paul Kanitra said during the Assembly vote on the measure. "We've already over the last five years, collectively, between Toms River and Brick, we've lost 400 (teacher and staff) jobs."

Toms River school officials say they are short more than $26 million needed to open schools in September.

Toms River schools chief: $26.5M NJ aid gap could make September reopening impossible

Kanitra added: "Even with them going up to 9.9% (on the tax levy) and with them taxing parents to death further and further, they're expecting another 400 cuts of staff and teachers in Toms River and Brick… We have to find a better solution here."

Assemblyman Alex Sauickie, who represents towns in the central part of the state, including his hometown of Jackson, said the problem is not one year of state aid cuts, but seven years of cumulative declines. For example, Jackson schools saw aid decline by more than $4.4 million in the 2024-25 school year, but the district has a $25 million budget gap due to years of state aid cuts, high inflation, skyrocketing transportation costs and the cap on local tax levy increases.

"It's at the point where they can't cut any further," Sauickie said.

Both the state Senate and Assembly passed bill A4161, which now heads to Gov. Phil Murphy to be signed into law.

Lawmakers also passed a bill that extends the deadline for schools to submit their 2024-25 school budgets. That measure gives the Legislature more time to propose other remedies, Sauickie said. The assemblyman has proposed another bill that would allow school districts to seek loans from the state in order to balance their budgets.

"We cannot wait for a new funding formula in the next year or two," Sauickie said. "We need to do something right now in the next few weeks to help these districts."

Amanda Oglesby is an Ocean County native who covers education and the environment. She has worked for the Press for more than 15 years. Reach her at @OglesbyAPP, aoglesby@gannettnj.com or 732-557-5701.

This article originally appeared on Asbury Park Press: NJ lawmakers pass rescue plan for schools, but is it enough?