Squeezed by state aid cuts, Brick schools in financial 'perfect storm'

BRICK — School district and township officials are urging New Jersey authorities to restore state funding to what they describe as severely stressed, cash-strapped local schools.

Last week, Brick Township Public Schools Superintendent Thomas Farrell released a report describing the local schools as on the edge of a "financial cliff" and short millions of dollars needed to fund a fair and adequate education, as required under state law.

"With inflation, cost-of-living increases, and other costs increasing substantially, we are in the 'perfect storm' fiscally," Farrell wrote in the 15-page report he shared with Asbury Park Press reporters.

Brick schools Superintendent Thomas Farrell is show in March 2021.
Brick schools Superintendent Thomas Farrell is show in March 2021.

In the current school year, Brick schools are short $9.4 million that is needed to provide Brick's nearly 8,400 students with a state-mandated "thorough and efficient" education, according to Farrell.

Since a new school funding formula known as "S2" took effect in 2018, Brick schools lost 49% of their state aid, according to Farrell. The funding is now heavily dependent on enrollment figures, yet, the district's enrollment only declined 10%, he said. State financial support dropped from $35.6 million in the 2018-19 school year down to $18.1 million in the current school year, he said in his report.

Over that same time, the school district's budget rose from $153.2 million to $163 million, despite increasing class sizes and reducing staff to control costs.

The S2 formula sought to redistribute state aid more fairly across the state. While more than two-thirds of state districts benefitted, some of the Jersey Shore's largest school districts — Brick, Toms River Regional, Jackson and Freehold Regional High School District, for example ― faced steep year-over-year cuts in state funding.

These suburban districts were not able to fill the resulting budget holes by raising their own local taxes, because of a state-mandated 2% cap on tax levy increases.

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At the same time, costs outside of the district's control routinely soared past 2%. Farrell said "extreme inflation" increased prices for transportation, employee health care and energy.

In addition, the number of English language learners in Brick schools quadrupled over the past three years, he said.

"These fixed cost increases have far exceeded the 2% tax levy cap," Farrell wrote in his report. "This is the 'perfect storm' and we need the state's help. The state can change this."

Brick schools are facing another cut in the coming school year. State officials are set to trim $2.5 million from Brick school's state aid package in the 2023-24 school year, according to a Township Council resolution that will be considered by the governing body on Tuesday. The Council is set to vote on the resolution, which calls the state funding cuts "grossly unfair" and urges New Jersey officials and Gov. Phil Murphy to restore school funding to the district.

The council meeting is scheduled to begin at 7 p.m. Tuesday at the municipal building, 401 Chambers Bridge Road.

Amanda Oglesby is an Ocean County native who covers Brick, Barnegat and Lacey townships as well as the environment. She has worked for the Press for more than a decade. Reach her at @OglesbyAPP, aoglesby@gannettnj.com or 732-557-5701.

This article originally appeared on Asbury Park Press: Brick schools face 'perfect storm' from state aid cuts: superintendent