Cape May County school districts will be getting an overall 1.6% increase in state aid for K-12 education in the fiscal year 2026, which begins July 1, under Gov. Phil Murphy’s proposed budget.
The increase comes to $688,284 over the previous fiscal year, but it is still lower than what the school districts received in fiscal year 2024. The county has 18 districts: 16 municipal districts, Lower Cape May Regional, and the county vocational school district.
Twelve districts will see aid increases, ranging from $46 for Cape May Point to $468,735 for LCMR. Five districts will see declines in state aid from fiscal year 2025, ranging from $2,068 in Avalon to $444,752 in Cape May City. The vocational district will have no change in aid level.
Gov. Phil Murphy’s schools budget is in line with a newly announced cap of 3% on reductions in four primary aid categories. The reduction cap is on equalization, special education, security and transportation aid.
Other categories are not covered by the cap and include school choice funding, which is a major funding source for several districts in the county.
The Murphy budget comes amid uncertainty concerning education funding at the federal level.
School funding is a controversial topic in New Jersey, with several districts, especially in South Jersey, saying that they have been hurt by state aid cuts that began in 2018.
Senate Bill 2 in 2018 modified the school funding law by eliminating adjustment aid. Cape May County began to see annual reductions, with a cumulative loss of more than $23 million in state aid by the 2024-2025 school year.
In one case, Dennis Township School District has stated that it no longer has the funds to meet its constitutional obligation to provide a “thorough and efficient” education. Two attempts by the district to appeal to voters in referendums seeking tax increases were rejected.
The loss of adjustment aid hurt county districts that were experiencing enrollment drops, but other factors have also played a role in the county’s declining state aid.
Rising property values have also had their impact. As districts see market value of properties jump, the state’s local fair share calculation increases the amount the district must contribute and reduces aid from the state.
The funding picture can change before the start of the new fiscal year on July 1. The governor’s budget will now be subject to the give-and-take of discussions with the Legislature. The budget must be approved by the Legislature and signed by Murphy before it becomes law.
Readers can find the school aid figures here.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
