Toms River school board says state left district short $26.5M, hires lawyers to sue

The Toms River Regional School District presented its tentative 2024–25 budget at a July 3 special meeting and said the district faces a $26.5 million revenue shortfall for the coming year while alleging years of state funding cuts have left it deeply underfunded.

"The state of New Jersey knowingly created this problem for our district," Superintendent Michael Sid told the board and public, saying the district has lost about $137 million over the past seven years because of changes in the state funding formula and S2. Sid said the shortfall threatens programs, jobs and even kindergarten if it is not corrected and urged the community to press state leaders for relief.

Board attorneys and district leaders framed the budget gap as the product of state policy. "The pleas for our students have been met with accusations, empty promises and direct threats," Board Attorney William Burns said, outlining the district's outreach to state officials and saying the board had retained outside counsel to pursue legal remedies.

After public comment and a round of board discussion in which several members said they would vote against the tentative budget, the board voted to adopt a resolution authorizing the Bush Law Group and Hartman Duff LLC to commence litigation in state and federal court against the State of New Jersey and related entities, seeking redress for what the district characterized as unconstitutional actions and inactions.

Assemblyman Paul Kiter, who spoke during public comment, urged the board to be vocal in Trenton and described the state budget as "reflective of the majority party's priorities," a remark that board leaders and members cited as evidence of the political choices they said had harmed the district.

Local elected officials and residents also urged support. "You need to be loud," Kiter said. Lawrence Coio, identified as Mayor of Pine Beach, told the board residents are worried about potential large tax-levy increases if the district is forced to raise local revenue.

The board's authorization for litigation was explicit: the resolution directs outside counsel to "take all action necessary and proper to commence litigation in state and federal courts against the state of New Jersey" to seek redress for alleged damages to students, residents and stakeholders. Board members recorded affirmative votes in support of that resolution.

The meeting also included a motion to submit the district's tentative budget to the county office. Several board members stated they would vote no to the budget itself during the meeting, citing the lack of a sustainable state funding solution; the transcript records multiple board members announcing "no" votes during the budget discussion.

The board said it will continue to press state legislators, the governor’s office and the Department of Education for action while pursuing legal options. The resolution instructs counsel to explore state and federal remedies; the district will also continue outreach to elected officials, administrators said.

What happens next: The district has retained outside counsel and has asked the community to contact legislators and the governor's office. The litigation process and any subsequent county or state review could affect final budget timelines and local tax levy outcomes.