Legislative Republicans call for adjustment to 6% school district aid increase cap

Legislative Republicans are calling for an end to a cap that limits how much state aid can increase for school districts year-over-year, saying the cap prevents districts from recovering from prior cuts in aid. 

Assemblyman Gregory McGuckin (R-Toms River) said nearly half of the school districts in his 10th legislative district hit the 6% increase cap in state aid from last year, but that the increase isn’t enough for schools to make up for previous cuts, not to mention cover increases in health insurance premiums and utility bills.

“Trenton Democrats only follow the formula when it benefits Democratic towns; when it benefits Republican towns, they change it,” McGuckin said. “When Democrats’ school districts were being awarded huge sums, there were no caps, but now that their own formula shows Republican towns have been getting screwed, suddenly there are caps.”

Former Gov. Phil Murphy introduced the caps — which applied to equalization, transportation, special education, and security aid — last year. Reductions in aid were limited to 3% year-over-year, while increases were limited to 6%. The Murphy administration said the caps would prevent the steep swings that had frustrated school officials in recent years, and who had been kept on their toes while attempting long-term planning. 

But McGuckin and other Republicans said the cap arrived just after the end of a school funding formula adjustment known as “S-2,” which they said unjustly cut aid from many of their local schools. McGuckin said that schools from his district are looking to recover from S-2-related cuts, but the cap prevents them. 

“While every little bit of additional funding is crucial to our schools, the 6% increase doesn’t even cover built-in cost drivers like health insurance premiums and higher utility bills, especially after years of cuts,” he said. “No school should ever have to face cuts, especially when the governor brags about increasing money for education.”

Gov. Mikie Sherrill’s $12.4 billion proposal would be the largest sum of K-12 state aid in New Jersey’s history. The Department of Education said the proposals stabilize volatile spending levels and that the administration will pursue policies to lessen costs for school districts outside of the budget process.

“The budget includes a record level of K-12 school funding, while acknowledging that much more work is needed to make sure students and taxpayers get the best return on our investment,” Sherrill said in a release. “It lays the foundation for future improvements – like stronger academic and mental health outcomes, shared services, and more efficient spending – to better support children from birth through graduation and strengthen schools statewide.”

State Sen. Declan O’Scanlon (R-Little Silver), the Senate GOP’s budget officer, also criticized the funding proposal.

“Districts harmed by S-2 will receive increases, but they’re capped at 6 percent — meaning many will get less than what the formula says they should receive,” O’Scanlon said. “At the same time, reductions to districts that received excessive aid remain limited to just 3 percent, protecting those massive, ill-advised gains. This is simply unfair to students, families, and taxpayers in communities that have been carrying the burden for far too long.”

Click here for the Sherrill administration’s initial funding proposals for the state’s school districts.