Fact Check: Toms River schools face bankruptcy due to state funding cuts and tax increases.

Fact Check: Toms River Schools Face Bankruptcy Due to State Funding Cuts and Tax Increases

What We Know

The Toms River Regional School District in New Jersey has been embroiled in financial turmoil, leading to discussions about potential bankruptcy. The New Jersey Department of Education intervened to prevent the district from filing for bankruptcy by imposing a budget for the 2025-26 school year, which included a significant tax increase of 12.9% (NJ.com, Asbury Park Press). This action was taken after the school board failed to approve a budget for the second consecutive year, which raised concerns about the district's financial management capabilities (Tennessean).

The school district has experienced substantial funding cuts, reportedly amounting to $175 million over recent years due to a state funding formula that penalizes districts with declining enrollments, such as Toms River (NJ1015, LiveMint). The state has indicated that Toms River was $106.7 million below what it needed to provide adequate funding for its operations (Asbury Park Press).

Analysis

The claim that Toms River schools face bankruptcy due to state funding cuts and tax increases is partially true. On one hand, the district has indeed faced severe funding cuts and has been forced to consider bankruptcy as a viable option due to its financial situation. The school board's president described the tax increase as "unconscionable" given the backdrop of significant state aid reductions (NJ1015).

However, the immediate threat of bankruptcy was averted when the state imposed a budget on the district, thereby preventing it from declaring bankruptcy. This intervention suggests that while the financial pressures are real and significant, the situation is not as dire as a bankruptcy filing would imply at this moment (NJ.com, Tennessean).

The reliability of the sources is generally high, as they come from established news organizations that report on local education and government issues. However, it is important to note that the framing of the situation can vary between sources, with some emphasizing the potential for bankruptcy while others focus on the state’s intervention and the resulting tax increases.

Conclusion

The claim that Toms River schools face bankruptcy due to state funding cuts and tax increases is partially true. While the district is under financial strain from both funding cuts and the necessity of raising taxes, the immediate risk of bankruptcy has been mitigated by state intervention. The situation remains precarious, and ongoing financial challenges could lead to further complications in the future.

Fact Check: Toms River schools face bankruptcy due to state funding cuts and tax increases.