Sherrill cuts school aid for one-third of NJ towns

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Gov. Mikie Sherrill is proposing a record $12.4 billion in state aid for K-12 schools, but the plan will do little to allay critics of the opaque funding formula. Under Sherrill's first proposal, 167 school districts would get less than last year, while three dozen will see increases in the multi-millions, including a staggering $60.6 million to Newark, the state's largest district. The largest aid increases again go mostly to major urban districts, reinforcing a long-running debate over how state aid is distributed.

Why it matters

The proposed funding changes are likely to lead to a spike in property taxes for many towns, as districts that lose funding will need to make up the difference through local taxes. This issue has long been a point of contention in New Jersey, with debates over the fairness of the state's school funding formula.

The details

Gov. Mikie Sherrill's fiscal year 2027 budget proposal includes a $372 million increase in statewide school aid, but also caps reductions so no district loses more than 3% of its aid. This cap saves districts from having to lose another $188.4 million in aid. However, the governor's plan also caps increases to no more than 6%, which critics say shortchanges districts that were long overdue for their fair share. Under Sherrill's first proposal, 167 school districts would get less than last year, while three dozen will see increases in the multi-millions, including a $60.6 million increase for Newark, the state's largest district.

• Gov. Sherrill presented the proposed budget on Tuesday, March 10, 2026.
• The fiscal year 2027 budget that includes the school aid changes would take effect on July 1, 2026.

What’s next

The proposed budget will now go through the legislative process, where lawmakers may make changes before approving a final budget.