Tax Raises, Job Cuts Likely For Cherry Hill Schools With Aid Cuts: Acting Superintendent

TRENTON, NJ — Massive reductions in state aid will likely force Cherry Hill schools to cut jobs, increase class sizes and seek local tax increases, the district's acting superintendent told state lawmakers.

The Cherry Hill School District is slated for one of New Jersey's largest year-over-year decreases in state-equalization aid for the 2024-25 school year. Acting Superintendent Dr. Kwame Morton was among several educational leaders and stakeholders who criticized the state's approach to school funding during the State Senate's Education Committee's Thursday hearing.

"Even with taxes raised to the maximum, a $2 million gap remains, forcing us to reduce positions," Morton said. "The potential loss of personnel is not merely a matter of balancing our budget; it directly affects the quality of education and support we can offer our students."

Cherry Hill schools will receive $29.5 million in state-equalization aid in Gov. Phil Murphy's proposed budget for the next fiscal year — a 19 percent decrease from this school year's allocation of $36.4 million and the district's lowest total since 2021-22.

New Jersey's formula for determining annual aid for each school district was part of the School Funding Reform Act of 2008, which aimed to address school funding inequities. A decade later, the state modified its formula with a law known as S2.

Cherry Hill has benefitted from S2's funding formula in prior years, with gradual increases in aid. But it came on the heels of "historic underfunding" from the state, said Morton, who is set to become the district's permanent superintendent.

The projected cuts in state aid leave Cherry Hill in an "untenable" position as it develops a budget for the next school year, he said. To make matters worse, the state formula offered no indications that the school district would receive the second-largest aid cut in the state, according to Morton.

"To ensure effective budget planning, predictability is crucial," Morton told the committee. "Cherry Hill Public Schools received an increase of $6.7 million in state aid last year, and we received a decrease of $6.9 million in this year's projected state aid. Drastic changes of this nature make it nearly impossible to effectively plan."

State Sen. Vin Gopal, chair of the Education Committee, noted the significant swing in Cherry Hill's state aid over the last two years.

"What were you expecting this year?" Gopal asked during Morton's testimony.

"At a minimum, we were expecting to at least be flat," Morton said. "And if we came out flat, we figured we could look at our teacher retention and recruitment efforts and would not have to go into making cuts."

Morton noted that Cherry Hill's school enrollment — a key factor in state funding — has only decreased by about 200 students over the last five years. The district educates about 10,700 students, making it New Jersey's 11th-largest school system overall.

S2 also factors in changes to income and property valuations in each district's tax base, which Morton said state lawmakers should re-evaluate. The State Aid Equalization report showed income and property values growing in Cherry Hill, but the student body reflects increasing socioeconomic needs, according to an audit from the district and township.

The district has seen greater enrollment in recent years from English language learners, students in special education and children who qualify for free or reduced lunch, Morton says. Nineteen percent of Cherry Hill students qualify for the latter.

"There's wealth in pockets in our community," Morton said. "But then there are members of our community who are on the other end of the SES (socioeconomic status) continuum."

Cherry Hill's budget for the current school year includes $254.4 million in general funding — $189 million of which was supported through local taxes.

Township voters approved the $363 million bond referendum for school upgrades in a 2022 special election. The measure passed by a 2-to-1 margin, with voters knowing it would mean a $386 tax increase on the average home.

But district officials will need to request a tax increase again because of the state-aid cuts, Morton said.

"These cuts will also require that we increase class sizes, cut resources and programs, possibly eliminate extracurricular activities and other support services that holistically support the development of our students," Morton said.

Gopal, who has also criticized S2, said that testimony from Thursday's hearing revealed the need for a new school-aid funding formula.

The 2024-25 school year is supposed to be the last for S2, but it's uncertain how the state will distribute equalization aid thereafter.

"It's critical we start taking steps to modernize the formula," Gopal said in a statement. "The core of the formula established under the 2008 School Funding Reform Act has not changed since that legislation was signed into law. But the needs of New Jersey’s school districts have evolved significantly since 2008 and the formula should reflect that."

The State Senate's Republican Caucus highlighted Morton's testimony on social media.

"Dr. Kwame Morton, Acting Supt. of Cherry Hill, explained that his district will be hit with an approx. $14 mil swing in funding, 2nd largest cut in NJ," the State Senate GOP posted on X, formerly known as Twitter. "The diverse district with many ESL students will be forced to once again ask taxpayers to help cover the deficit."