New Jersey Governor Mikie Sherrill’s first budget address included many eye-popping numbers, including $12.4 billion in K-12 aid for school districts starting next year. However, several NJ districts actually stand to lose money under the new budget.
Most New Jersey schools are on track for more aid under Sherrill’s budget—but not all. According to NJ.com, 29% of districts are expecting decreases in state aid during the 2026-27 school year.
Just under 200 districts will see deductions in aid—mostly small amounts, capped at 3%. However, eight schools stand to see losses that exceed 3%, and two will lose more than 10% of their state funding.
Tiny Districts and the 3% Cap
The schools that lose out are mostly tiny districts with less than 500 students. Makes sense.
Loptacong Township, Franklin Township, Wallkill Valley, Delaware, Colts Neck, and Seaside Heights will all lose between 3.19% and 6.73% in aid.
The percentages exceed the 3% cap, but are shy of doing real damage. Still, it’s not something to overlook. Seaside Heights (-6.73%) stands to lose just under $25,000 from the state—Colts Neck (-5.40%) will be shorted $186,349.
These aren’t district-breaking figures, but they will require schools to do some shifting. Layoffs, program cuts, and more are all on the table.
These 2 NJ School Districts Lose Big
Two New Jersey school districts are on track to see more than 10% of their state aid cut.
Milford—which only has 80 students enrolled district-wide—will experience the single largest percentage of their state aid cut. 17.76%, to be exact. That brings their expected state aid for next year down to under $300,000. In terms of dollars lost, that translates to $61,584 less than the previous year.
For a truly astonishing dollar figure, you have to look to Bergen County’s Englewood. Of the eight schools losing amounts above the 3% cap, Englewood is easily the largest district with over 3,000 students enrolled.
Englewood will lose 12.91% of their aid budget, and for a district of this size, that means a huge number taken from the purse. After all numbers are factored in—including some increases offset by a $1.8 million loss in school choice aid—Englewood stands to lose a net $1,463,134 from the state of New Jersey. It is by far the largest amount being cut from a single district.
A New Aid Formula
Under Sherrill’s latest budget proposal, a majority of New Jersey schools will see increases in state aid, with just under one-third of districts seeing cuts ranging from negligible to steep.
Of the districts losing out, eight exceed the 3% cap signed into law last year. And two of them will see large chunks of their usual aid vanish. As New Jersey schools grapple with new budget formulas, state aid remains front and center.