Archive · 18 Jul 2025
Toms River Schools Declare Bankruptcy Amid Budget Crisis
The Toms River school district, with over 14,000 students, is in big financial trouble.
The state cut their funding by a lot of money, about $175 million, which caused big problems.
They didn't want to raise taxes even higher than they already were.
The state wanted them to raise taxes to keep their programs.
Because of this, the school district decided to declare bankruptcy.
This means they can take a pause on paying their debts while they figure out a new plan.
Some people blame the state's funding system for the problem.
Toms River schools filed for Chapter 9 bankruptcy due to tax hike and state aid cuts.
The district faced a $175 million budget reduction over seven years, leading to layoffs and program cuts.
State officials demanded a tax increase or program shutdown, which the district refused.
Republican lawmakers blame Governor Murphy's funding formula for the crisis.
The bankruptcy filing is rare for a district with a good credit rating.
- Who
- Toms River school district and state officials.
- What
- Toms River school district filed for bankruptcy.
- When
- Recent.
- Where
- Toms River, New Jersey.
- Why
- Due to state aid cuts and refusal to raise property taxes.
Governor Murphy's View
Republican Lawmakers
Funding Formula
Governor Murphy's View
N/A - The provided article doesn't explicitly state the Governor's view.
Republican Lawmakers
Republican lawmakers blame Governor Murphy's
- District Size
- Over 14,000 students
- Bankruptcy Type
- Chapter 9
- State Aid Reduction
- $175 million over seven years
- Tax Hike Refused
- 12.9%
- Previous Tax Increase
- 9.3%