$6.5M In Layoffs, Tax Increase Planned To Close Cherry Hill School Budget Gap

CHERRY HILL, NJ — Leaders of one of the state's largest school districts have started to brace for a 2026/2027 with another reduction in school aid and higher outside costs.

The Cherry Hill Public Schools Board of Education held a special meeting on Thursday to discuss a tentative budget overview after learning they would be allocated three percent, or $860,000, less in federal funding.

This is the third school year in a row that Cherry Hill has received a lesser allocation than the year prior, amounting to an $8.6 million loss.

On Thursday, Board leaders lined out other drivers of rising costs such as an estimated $10 million hike in employee health coverage, transportation contract growth, special education costs, and regular contractual salary raises.

The two percent tax levy cap also limits the amount New Jersey school districts can obtain from local revenue growth on an annual basis.

The district is no longer in a place to use a fund balance to support operations and delay layoffs, Board officials said at the meeting.

"We no longer have $13 million of surplus to Band-Aid this problem," added Jason Schimpf, business administrator for the district.

The capital reserve fund has dipped under $4 million due to earlier uses for bond payments to offset tax increases.

In order to combat the deficit, the Board proposed a 7.4 percent tax levy hike to garner around $14.8 million in additional funding.

After subtracting contributions from a Debt Service Fund, this decreases to 6.76 percent and amounts to around $420 in annual property tax increases for the owner of a home that is assessed at the township's average of $227,000.

Another $14.5 million is needed, and will include $8 million coming from non-personnel spending and $6.5 million in staff reductions.

These non-personnel cuts center around instructional support systems, program resources, professional services, and supplies without waste.

Staff salaries and benefits account for nearly 80 percent of the district's budget, Cherry Hill officials said.

"The focus remains on maintaining educational quality and essential services while responsibly planning for future needs," the Board added.

While the $12.4 billion towards school aid is an increase over 2025/2026, Cherry Hill is one of the 167 of the 574 public school districts that saw a reduction as part of Governor Mikie Sherrill's larger goal for consolidation and more shared services.

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