CHERRY HILL, NJ — Cherry Hill schools will face "difficult financial decisions" with the state set to reduce their funding for the next school year, according to district officials.
The Cherry Hill School District is slated to receive $29.5 million in equalization aid from the state for the 2024-25 school year — a 19 percent cut from this year's allocation of $36.4 million and the district's lowest total since 2021-22.
The projected cutbacks will add challenges for the Cherry Hill School District — one of the largest in New Jersey — as it develops a budget for the 2025 fiscal year, which begins July 1.
District officials are "shocked" about the decrease in funding, according to School Board President Miriam Stern and Acting Superintendent Dr. Kwame Morton. The district has already begun working with state and local officials to get reasons for the funding cuts and to plan its next steps, Stern and Morton said in a letter to the school community.
"As a result of these cuts, we are facing difficult financial decisions in the weeks ahead," the letter said. "While our successful bond referendum, passed in October 2022, allows us to continue the planned improvements of our facilities district-wide, we must now examine our costs beyond those addressed by the bond funds."
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Township voters approved the $363 million bond referendum for school upgrades in a 2022 special election.
District officials will discuss the budget implications of the state-aid cut at the next two Board of Education meetings on March 12 and March 19. Both begin at 6:30 p.m. in the Lewis Administration Building (45 Ranoldo Terrace) and will be livestreamed.
Gov. Phil Murphy's $55.9 billion state-budget proposal, which he introduced Tuesday, includes $11.7 billion in aid for K-12 public schools. The equalization aid is an influential factor in a school district's share of property taxes. Many districts say that cuts, or even flat spending, force them to raise taxes for local homeowners.
While Murphy's budget is merely a proposal, the state-aid figures provide school districts with a roadmap for developing their 2024-25 school year budgets.
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Cherry Hill is among more than 60 school districts that will see funding cuts in double-digit percentages, according to proposed district-by-district funding data published this week. Another 200-plus are poised to see aid increases in the double-digit percentages.
The Cherry Hill district's budget for the current school year includes $254.4 million in general funding — $189 million of which was supported through local taxes.
Mayor Dave Fleisher said the cut in state aid for the district is "unacceptable."
"Cherry Hill schools have long been underfunded by the state," Fleisher said. "Cherry Hill students, taxpayers and families deserve better. Make no mistake, this will hurt our children. I have contacted our state legislators to advocate for fair funding for our schools."
New Jersey's formula for determining annual aid for each school district was part of the School Funding Reform Act of 2008, which aimed to address school funding inequities. While many districts have received additional funding, more than 200 have seen aid cuts yearly since 2018, as a result of the revision to the SFRA known as S2 that was signed into law by Murphy. (S2 got its start in 2017, when then-Gov. Chris Christie and then-Senate President Stephen Sweeney made a deal that swapped the increase in the gasoline tax Christie wanted in exchange for cuts in state funding to districts that had been receiving adjustment aid.)
The 2024-25 fiscal year is supposed to be the last year of S2 and its cuts, but so far a new funding formula has not been put forth.
Cherry Hill has benefitted from S2's funding formula in prior years, with gradual increases in aid. But it came on the heels of "inadequate" state funding for the district since the 1990s, according to the Fair Funding Committee, which advocates for state funding for Cherry Hill schools.
Overall, Murphy has proposed a $908 billion increase in K-12 aid over the current state budget. His plan includes the largest investment in public education in state history and would fully fund the state's school funding formula for the first time, the governor said during his annual budget address.
The State Legislature now has several months to tinker with Murphy's budget proposal. Lawmakers must approve a balanced budget for the governor's signature before July 1, when the new fiscal year begins.