New Jersey Schools Face Layoffs, Tax Hikes Amid Budget Crisis; State Takeover Looms for Some Districts

April 8, 2026
New Jersey Schools Face Layoffs, Tax Hikes Amid Budget Crisis; State Takeover Looms for Some Districts
  • 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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