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Phil Murphy’s Flawed School Funding Formula Sends One Of New Jersey’s Largest Districts Into Bankruptcy

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The Toms River Regional School District is warning of potential summer school cancellations and exploring Chapter 9 bankruptcy as it faces a multimillion-dollar budget shortfall, despite increases in state aid elsewhere. According to a proposed 2025–26 district budget, Toms River is operating on an estimated per-pupil expenditure of just under $20,000 — among the lowest in the state for large districts. New Jersey’s state average per-pupil spending is estimated between $20,000 and $22,000, with districts like Newark reportedly exceeding $37,000 per student.

 

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