Education at a Crossroads in Jackson, NJ: The S2 Funding Formula Controversy
Last Tuesday, residents of Jackson, New Jersey, gathered in a pivotal Board of Education meeting to confront the severe implications of the school district's $30 million budget shortfall for the 2024/25 school year. The impact of New Jersey’s S2 legislation on the community was a central theme, particularly as the school district grapples with drastic measures that could reshape the future of its youth. Board members wore shirts that read S2 Has Failed Jackson.
The Dire Situation in Jackson
Superintendent Nicole Pormilli presented a grim picture: the district faces the elimination of all sports, arts programs, most AP classes, the closure of several schools, and significant staff reductions if they cannot receive advance state aid from the Department of Education. The Jackson School District has lost millions of dollars in aid since the S2 funding formula was enacted several years ago. The financial crisis is so severe that the State appointed a monitor, Carole Knopp-Morris, in January 2024 to oversee the district budget since Jackson was unable to balance it despite cutting an additional 5 million dollars for the 24/25 school year. During the Tuesday meeting, school board members repeatedly stressed that they could not in good conscience cut additional line items because it would render them unable to provide students with a “thorough and effective” education - terms used by the State to evaluate appropriate education for students. It was also shared that if Jackson had to proceed with drastic cuts they would fall well below recommended spending levels per student.
State monitor Knopp-Morris has affirmed the district's fiscal responsibility yet financial challenges remain. Shockingly, the 2023-2024 loan request has still not been approved. Now that a monitor has been appointed, loan monies rely on the recommendation of Knopp-Morris to the Department of Education Commissioner. In the meantime, the Jackson School District is responsible for paying the salary for Knopp-Morris. Jackson parents questioned why they should pay for someone that has yet to be a help to the district after months of being embedded. One even asked if they could get the money back if the request for a loan, also known as advance state aid, is denied.
School Board President, Giuseppe Palmeri, asked Knopp-Morris why the Lakewood School District was allowed to include prospective loan funds in their budget while Jackson was instructed they could not. This was met with thunderous applause from those in attendance. Morris declined to answer the question.
Community Reaction
During the public forum, emotions ran high. Parents and students spent over two hours passionately discussing how the potential loss of crucial educational programs would affect their lives, with many moved to tears. These testimonials highlighted not just the financial numbers but the human costs of the current funding crisis.
Legislative History and Ongoing Disputes
The S2 bill, officially known as Senate Bill 2, was introduced as part of efforts to overhaul how education funding is allocated across New Jersey, aiming to correct perceived imbalances in funding that had developed over years. Despite its goals, the bill has faced substantial opposition. Critics argue that it disproportionately affects growing districts that do not yet have the tax base to support their expanding student populations and that successful school districts are gutted to support failing programs. As evidenced by the turnout and testimonies in Jackson, many believe the legislation has fallen short and has failed the town causing a fiscal cliff.
In attendance at the May 7th meeting was Jackson resident and NJ Assemblyman, Alex Sauickie, who pointed out the stark disparity in state funding caused by the S2 funding formula. As an example, he noted that Jackson residents paid $68 million in taxes but received only $23 million in return, whereas Newark paid $44 million and received a staggering $1.02 billion. This comparison underlines a widespread belief that the funding formula is fundamentally flawed.
Several districts including Jackson have taken legal action seeking transparency concerning the algorithm that determines funding distribution. However, these attempts have been stymied by claims that the details of the algorithm are proprietary, leaving districts at a disadvantage in understanding their allocated funds. One parent who spoke during the public forum asked Knopp-Morris how a formula funded with taxpayer dollars could be considered “proprietary.”
Looking Ahead
Many school districts have been negatively impacted by the aid disparities caused by S2. This is serving as a catalyst for re-examining and introducing new legislation to address the deficits. According to Asm. Sauickie, there is currently a bill in committee to address the budget shortfalls school districts are facing before next year’s budget is finalized. If there is no aid distributed to these districts or legislative proposals fail, Jackson is facing an untenable situation.
While the goal must always be to ensure that every student in New Jersey has access to quality education, it cannot be done by damaging school districts with successful outcomes. Yes, S2 has failed Jackson. Residents, administrators and staff wait anxiously for officials to make it right.