Proposed N.J. Budget Adjusts School Aid, Highlighting Gains and Losses Across Districts

Gov. Murphy's $12.1 billion school funding plan introduces limits on aid changes and updates to the funding formula, impacting districts differently.

Gov. Phil Murphy's 2026 budget proposal includes $12.1 billion for K-12 schools, a $386 million increase from the previous year.
Approximately 68% of New Jersey school districts would see an increase in state aid, while 31% would face reductions, capped at a 3% decrease.
The updated funding formula includes changes to special education calculations, now based on actual enrollment rather than census estimates, and allows some districts to exceed the 2% cap on property tax increases.
Districts like Cherry Hill and Haddon Township face significant aid cuts, prompting concerns about budget gaps and potential impacts on students and staff.
Newark schools would benefit from a 6% increase, receiving a record-high $1.3 billion in aid, as part of efforts to stabilize funding for historically underfunded districts.