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

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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