New Jersey Schools Face Layoffs, Tax Hikes Amid Budget Crisis; State Takeover Looms for Some Districts
April 8, 2026
Across New Jersey, 2026–27 budget pressures are squeezing 11 districts with layoffs, tax hikes, and possible school closures as boards grapple with funding gaps and rising costs.
New Su19ter areas are confronting similar deficits, triggering staff cuts, tax increases, and closures across multiple districts.
Jefferson Township faces about a $3 million shortfall, prompting staff and travel cuts, a small tax uptick, and prior steps that included school closures and staff reductions.
Montclair faces an $18 million hole after voters rejected a second permanent tax proposal, with a possible Renaissance Middle School closure to save roughly $2.3 million annually, while the governor proposes a six percent boost in state aid.
State aid projections are mixed: some districts expect modest increases around 6%, while others anticipate declines or inadequate aid to offset costs, complicating balancing efforts.
Tax increases remain a primary tool to close gaps, with homeowner increases generally ranging from about 3% to nearly 9% and some households facing hundreds of dollars more per year.
Governors’ funding plans and enhanced oversight from the Department of Education aim to detect financial distress early and offer technical help to at-risk districts.
Bernards Township considers charging $50–$200 for sports and clubs to help close a roughly $6 million gap, alongside up to 30 job cuts and a sizable property tax increase.
Lakewood is being eyed for possible state takeover after long-running deficits and loan reliance, potentially marking the first suburban district to be fully taken over.
High-profile scenarios include Lakewood’s potential full state takeover and Ocean Gate shuttering its only school, with transferring students to neighboring districts after voters rejected a critical tax increase.
Cherry Hill Public Schools project a $14.5 million deficit driven by health care and transportation costs, with a potential 7.4% tax rise and staff/program reductions.
Across districts—from Hackensack to Montclair and beyond—significant measures such as staff cuts are already underway or planned in multiple counties.
Summary based on 2 sources
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Pilar Político • Apr 8, 2026
These 11 N.J. school districts are facing layoffs, tax hikes and closures to stay afloat