Why Didn't Middletown Schools Apply For Stabilization Aid?

MIDDLETOWN, NJ — At a time when the Middletown school district has lost millions in funding cuts from Trenton, some school board members continue to question why the district did not apply for stabilization aid this autumn.

"Stabilization aid," which you can read about here, is free state money made available by Gov. Phil Murphy this year to New Jersey school districts that experienced state aid cuts. Large suburban school districts like Middletown, Toms River and Brick have all lost millions from the state, starting in 2017 when the state changed its school funding formula.

For example, in the 2022 budget, Middletown schools will get $14.5 million from the state Department of Education, seven percent less than it received this year, which was less than it got in 2019 and 2018.

However, Toms River schools applied for the stabilization money and got it, receiving $7.6 million. Brick school district will be getting $6.5 million.

So why didn't Middletown apply?

Middletown did not meet the criteria to apply, maintains school district business administrator Amy Gallagher.

"The criteria in the application, it wasn't just predicated on a reduction in state aid," explained Gallagher at the most recent Middletown school board meeting Nov. 22. "It said if your district is facing a structural budgetary imbalance ... we have money in reserve that we can use before (seeking state aid)."

"They were going through criteria points to see if you have a budget imbalance and we didn't meet those bullet points," Gallagher continued. "And we have other funds to use before we would even be considered for any additional aid."

She also said the Middletown school district is half a million dollars over budget that the state would require when considering additional aid.

However, the criteria in the stabilization aid application was straightforward:

• The district experienced a reduction in state aid; or
• The district faces a structural budgetary imbalance.

Board member Jacqueline Tobacco said she thinks the district still should have applied for the stabilization aid.

"I understand," she said after Gallagher spoke at the Nov. 22 meeting. "But I would have liked to hear that answer from the state government. We didn't even bother to apply."

"We should apply for any opportunity for grants even if there's a chance we don't get it," Tobacco reiterated to Patch Friday morning.

However, both she and Board member Frank Capone maintain their positions that the school district should not accept $4 million in American Rescue Plan funds, because they are worried the ARP money will come with COVID-masking and testing requirements attached.

"When strings are attached, it's no longer a grant; we are now considered debtors," Capone told Patch on Friday. "I would always encourage the administration to apply for grants with no strings attached for our children and staff."

Other Middletown BOE members, such as Deborah Wright, Joan Minnuies, Tom Giaimo and John Little, did not immediately get back to Patch with their opinion of the stabilization aid matter.

The way the process works is that the Middletown school district applies for grants or aid; the school Board is then asked to approve or reject the grant applications.

On this topic: Some Middletown BOE Members Decline American Rescue Plan Funds (Dec. 1, 2021)

Middletown Schools To Get 7 Percent Less Funding From Trenton In 2022 (Feb. 2021)

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