Ocean Gate Elementary School, operating since 1914, will close at the end of June after losing more than half its state funding.

It is the tiny NJ town’s only school, serving 149 students in pre-K through sixth grade. A $700,000 budget shortfall forced district officials to propose a 27% property tax increase—roughly $636 extra per year for the average home. Voters rejected the measure in January, with a vast majority (68%) voting no. 

Ocean Gate’s state aid dropped dramatically since 2019. During the 2019-20 school year, Ocean Gate received $951,000 in aid. This year, that number has fallen to just $367,000. The cut stems from New Jersey’s 2018 school funding formula, which saw billions of dollars redirected from smaller districts considered overfunded, to larger schools deemed underfunded. 

Beginning in the 2026 school year, Ocean Gate students will attend neighboring Berkeley Township schools. Younger students will go to H&M Potter Elementary, while fifth and sixth graders will attend Berkeley Township Elementary. Tenured teachers will transition to Berkeley schools under a five-year agreement.

The plan for the Ocean Gate Elementary building remains undecided. Local officials will evaluate the property in coming months to determine whether to sell or repurpose it.

After 112 years, Ocean Gate Elementary closes as a casualty of state funding priorities. The small New Jersey town is left without any remaining schools.