N.J. school district's bankruptcy attempt blocked. State forces 13% tax hike on residents.

By Nyah Marshall | NJ Advance Media for NJ.com

In a rare move, the state Department of Education has stepped in to stop the Toms River Regional School District from moving forward with its plan to file for bankruptcy.

A growing feud between the Toms River Regional and state education officials escalated Monday when the school board refused to approve a budget for the 2025-26 school year.

District officials say their schools have been struggling due to New Jersey’s revised school funding formula, which they claim has stripped more than $175 million in aid from Toms River Regional schools since 2018.

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State officials told the district it would need to raise local school taxes again — this time by nearly 13% — to balance next year’s budget. But, instead of complying with the state’s warning to pass a budget or cease all operations, the school board voted to begin the process of filing for bankruptcy.

https://www.nj.com/news/2025/07/nj-school-districts-bankruptcy-attempt-blocked-as-state-forces-13-tax-hike-on-residents.html