Hackensack council approves $6.5 million emergency transfer to city school district to avert midyear layoffs

The Hackensack City Council voted unanimously Jan. 28 to authorize a one-time $6,500,000 transfer to the Hackensack Board of Education and to adopt an emergency temporary appropriation to cover the payment. Council members said the move was intended to prevent midyear reductions in force and preserve instructional continuity for students.

The resolution, read into the record by the clerk, said an independent audit disclosed a current-year shortfall of over $17,000,000 and found failures in fiscal controls and unbudgeted hires dating back to 2019. The measure directs the city's chief financial officer, city manager and city attorney to prepare and submit the required documentation to the Division of Local Government Services; the transfer is conditioned on inclusion in the municipal budget and state approval for any required budget amendment.

Why it matters: Council leaders and public speakers said the transfer is a stopgap to keep students and teachers in place while the district works to correct its finances. Parents, teachers and pastors who spoke during the meeting described the immediate impact of staffing instability on students and urged the council to act quickly to minimize classroom disruption.

City attorney: oversight and conditions

The city attorney told the council that the same certified public accounting firm now audits both city and school finances, and that school reserves (roughly $10,500,000 as described in the resolution text) cannot be accessed for the current shortfall without the county superintendent's approval. The attorney said the city will not transfer funds until it is clear how reserves and the temporary appropriation together will balance the year and until required approvals are obtained. The resolution states explicitly that the transfer must be unconditional, not constitute a loan, and create no repayment obligation for the board.

Public comment: urgency and calls for accountability

Dozens of residents and school-affiliated speakers urged passage during the public-comment period. "This one-time transfer is not about excusing past failures. It's about protecting students now and giving the district the breathing room needed," said Josh Cohen, who identified himself as a Hackensack parent. PTA leaders and teachers described the emotional strain on staff and students and emphasized that cuts to special-education and bilingual programs would ripple through general education.

Several speakers also pressed for transparency and oversight. One resident asked what conditions would attach to the funds and whether the city would consider an independent monitor or salary freezes; the council and city attorney said reporting from the common auditor and additional measures would be part of the follow-up.

The vote and next steps

After reading the resolutions, the council took a roll-call vote and passed Resolution 41-26 (the $6.5 million transfer) and Resolution 42-26 (a 2026 emergency temporary appropriation to provide for the contribution). Council members said they expect periodic reports from the shared auditor and indicated the council will pursue closer communication with the board of education, including a city liaison, to monitor spending and implementation.

The meeting adjourned after brief closing remarks thanking residents and emphasizing the council's stated commitment to preserving educational continuity.

Sources and limitations: The figures and conditions above are drawn from the resolutions read at the meeting and from on-the-record public comments and explanations by the city attorney. Where the resolution referenced findings of an independent audit or legal citations (for example, NJSA provisions named in the resolution), this article reports those references; the article does not independently verify the audit findings or allegations of misappropriation mentioned in the resolution text.