Facing bankruptcy, Toms River schools defy New Jersey education officials

🔴 Toms River refuses to pass budget amid $175 million in state cuts

🔴 School officials won't follow orders to stop programs

🔴 Taxes would need to go up by nearly 13%

TOMS RIVER — The largest school district in Ocean County, on the verge of declaring bankruptcy due to funding cuts, is slamming the Murphy administration for demanding that it stop student services.

On Monday, the Toms River school board refused to pass a budget for the upcoming fiscal year.

The district, which serves over 14,600 students, has lost $175 million in recent years due to changes in the state funding formula.

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Ashley Lamb, the school board president, said the district would have to raise taxes by 12.9% to balance the budget. And that's on top of a 9.3% tax hike the year before, plus selling off $20 million in assets.

Lamb said the tax increases were "unconscionable."

"Our district has already endured devastating cuts – we've lost over 250 teacher and staff positions and seen class sizes increase to critical levels. Enough is enough," Lamb said.

Toms River Regional School District plans to file for bankruptcy

Instead of raising taxes to generate $22.3 million in revenue, the Toms River school board has approved a resolution to move forward with filing for bankruptcy.

The resolution allows district officials to meet with bankruptcy attorneys and begin filing for Chapter 9 federal bankruptcy protection.

Bankruptcy would protect the district from creditors while school officials work on a debt adjustment plan, according to school officials.

In the meantime, the school board also passed a resolution directing the district to continue operating as normal with no interruptions to education programs.

The resolution flies directly in the face of orders from the Murphy administration.

New Jersey orders Toms River schools to stop services

On Monday, the Toms River school board received a warning letter from David Corso, the assistant commissioner of the state Division of Financial Services.

Corso said the district would have to stop all spending, including on summer education programs, if it did not approve a budget for the upcoming fiscal year.

"The Board and Administration must initiate closure procedures and activities to ensure no funds are expended, Corso said.

New Jersey Republican lawmakers blame school funding formula changes

Local lawmakers say the problem is not Toms River's spending — it's Gov. Murphy's cuts.

In a statement, a group of Republican lawmakers representing parts of Ocean County condemned changes to New Jersey's school funding formula.

"Toms River is one of the most efficient and fiscally responsible districts in the state. This is a revenue problem, created entirely by a deeply flawed and politically driven funding formula, implemented with zero transparency and even less accountability," the group of state lawmakers said.

The group included state Sens. James Holzapfel and Paul Amato, Jr., and Assemblymen Gregory McGuckin, Paul Kanitra, Brian Rumpf, and Greg Mhyre.

Last fiscal year, around 140 school districts lost tens of millions of dollars in state aid.

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