For many years, Neptune Township School District received approximately $32 million annually in state aid. Then the funding picture changed. According to the District's own 2025–26 Budget FAQ, S-2 legislation, enacted in 2018, changed the distribution of state school aid by attempting to balance funding between districts the State considered “overfunded” and “underfunded.” ¹

​

The district states:

​

“Over the last six years, the Neptune Township School District has lost $25 million in state aid, due to the passing of S-2 legislation.” ¹

​

The district also reports that Neptune, which once received approximately $32 million annually in state aid, now receives approximately $8 million annually. ¹

​

How Did Neptune Respond?

According to the District, the reduction in state aid occurred while other expenses continued to increase, including salaries, health-care costs, special-education costs and approximately $4 million in charter-school tuition. ¹ ²

​

The district says it responded over time by reducing its footprint, cutting positions, using fund balance and increasing local taxes.² It reports “107 staff and other cuts” over the preceding several years.²

​

Those are significant adjustments. But they also raise an important question:

 

When a district permanently loses a substantial source of revenue, how should it adapt for the long term?

S-2 wasn't simply a one-year budget problem. According to the District's own account, it represented a fundamental change in the amount of state aid available to support Neptune's schools.

​

That means we should be asking:

1. Has the District's overall cost structure adjusted to its new level of state funding?

2. As enrollment has declined, have staffing and facilities been adjusted appropriately?

3. Are we using our existing school buildings as efficiently as possible?

4. Which costs can realistically be controlled—and which cannot?

5. How much of the lost state funding should reasonably be replaced by local taxpayers?

6. And what is Neptune's long-term plan for operating within this new financial reality?

 

This Is About Long-Term Sustainability

It would be unfair to suggest that a Board of Education can simply make a substantial loss of state aid disappear. The district reports that it has already made difficult staffing and other reductions in response to declining revenues and increasing expenses. ²

​

But a permanent change in revenue requires more than a temporary response. The district itself says that a stakeholder committee will be formed to develop a long-term sustainability plan and that it will continue advocating for legislative changes and other solutions. ³

​

That is exactly the conversation Neptune should be having:

​

How do we preserve strong educational programs while building a school system that is financially sustainable for the students and taxpayers who depend upon it?

​

Responsible stewardship means acknowledging what Neptune has lost, understanding the financial pressures facing the district, and making the difficult long-term decisions necessary to adapt.

 

Source & Footnotes

¹ Neptune Township School District, Budget 2025–26 FAQ (2025), p. 1. The district discusses S-2, states that it lost $25 million in state aid over six years, and reports that annual state aid declined from approximately $32 million to approximately $8 million.

​

² Neptune Township School District, Budget 2025–26 FAQ (2025), pp. 1–2. The district discusses rising health-care, special-education and charter-school costs; its use of fund balance and tax increases; reductions in positions; and reports “107 staff and other cuts” over the preceding several years.

​

³ Neptune Township School District, Budget 2025–26 FAQ (2025), p. 2, Questions 5–6. The District discusses its advocacy regarding the funding formula and its plan to form a stakeholder committee to develop a long-term sustainability plan.

​

Single source:
Neptune Township School District — Budget 2025–26 FAQ