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Toms River board rejects DOE directive, refuses proposed 2025–26 budget and authorizes Chapter 9 consultation
Summary
The Toms River Regional School District Board of Education unanimously approved a resolution rejecting New Jersey Department of Education directives to delay programs, declined to adopt the proposed 2025–26 budget with a 12.9% tax increase, and authorized officials to consult bankruptcy counsel to explore Chapter 9 protections while directing staff to continue services.
The Toms River Regional School District Board of Education voted to reject a New Jersey Department of Education directive to delay programs and expenditures and declined to adopt the proposed fiscal 2025–26 budget, the board said at a special meeting.
Mister Burns read a resolution the board approved that said the district is “$107,000,000 under adequacy” and has suffered a cumulative loss of “$175,000,000 in state aid,” a shortfall the resolution blames on the state funding formula. The resolution also states the district has eliminated “over 250 faculty and staff positions,” and that balancing the proposed budget would have required an estimated $22,300,000 in additional revenue — described in the resolution as a 12.9% tax increase.
The resolution states that, if the board failed to adopt a budget, the NJDOE had directed the district to stop expenditures and delay programming. In response, the board voted to reject those directives and to continue providing services. “The board has authorized District officials to consult with bankruptcy attorneys and begin the process of filing for Chapter 9 federal bankruptcy protection,” Mrs. Lamb said after the vote, adding the district will continue efforts to engage the Department of Education.
Board member Eagan moved to approve the resolution; the board conducted a roll-call vote and recorded yes votes from Matarazzo, Joubert, Coyne, Contessa, Eagan, Kidney, Capone and Lamb. The motion passed.
A statement read by Mister Burns included a joint message from state legislators for districts 9 and 10 criticizing the state funding formula and urging the governor and education department to provide additional aid. The statement called the loss of state aid “a revenue problem, not a spending problem.”
The board’s resolution directs the superintendent, administration and staff to continue necessary actions so students receive an uninterrupted education, including services for special education students and the timely start of the district’s extended school year scheduled to begin the next day. The board also authorized the superintendent and business administrator to consult legal counsel about Chapter 9 protections.
The board opened a public-comment period limited to three minutes per speaker but no members of the public addressed the board; the meeting was then adjourned.
