The New Jersey Department of Education has intervened to prevent the Toms River Regional School District from filing for bankruptcy. The district has faced significant financial challenges, losing over $175 million in state aid since 2018 due to a revised funding formula. In response to the state’s demand for a nearly 13% tax increase to balance the budget, the school board opted to pursue bankruptcy instead. The state has now adopted the district’s budget, explaining: “While the Department acknowledges the difficulty inherent in school district budgeting decisions, the State and the public hold their school district leaders to the highest standards.” Toms River Board of Education President Ashley Lamb criticized the state’s actions, claiming it shifts the financial burden onto local taxpayers. The district has already cut staff and raised taxes significantly in previous years, leading to a cumulative tax increase of 22.2% over two years.
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