How Are Our Schools Funded?
In New Jersey, public schools are funded through three main sources. Each plays a different role, and the ways they all come together shapes what students experience in the classroom.
Local funding: The largest share of school budgets come from property taxes. Towns like ours rely heavily on this, and a significant portion of our school funding comes from the money we pay in property taxes. But because local funding is tied to property values, some communities are able to raise more money than others.
State aid: This is supposed to even things out. The state uses a formula that looks at how many students are enrolled, how much a community can afford to raise in taxes (based on their property values), and the needs of the students in that community (for example, the percentage of English learners or students with disabilities). In theory, this directs more resources to districts with greater need. In practice, Long Valley has faced a significant reduction in state aid over the past five years, requiring the Board and District to adjust budgets and find ways to maintain programs.
Federal aid: This is the smallest slice, and it’s tied to specific programs like special education, Title I for high-poverty schools, and school nutrition.
When people talk about “the funding formula,” they’re usually talking about the state aid bucket. The idea is to create fairness across communities, but when the numbers shift, towns like ours can feel the difference quickly. This is where you can come in! Learning how the formula works can help stay informed and support our schools in ensuring they have the resources they need.
