Jackson Township Councilman Giussepe Palmeri is calling on Governor Phil Murphy and the New Jersey Department of Education to intervene in the school funding crisis that has left the Jackson School District struggling with an $18 million budget deficit.
In a letter addressed to Governor Murphy, Palmeri expressed outrage over the state’s decision to extend a $65 million loan to the Lakewood School District—bringing its total state loan debt to over $230 million—while Jackson faces severe financial shortfalls without similar aid.
The budget deficit has already forced the Jackson School District to close and sell Sylvia Rosenauer Elementary School and cut 70 staff positions. Palmeri blames the ongoing financial crisis on the controversial S2 funding formula, which has reduced Jackson’s state aid by 50.1% despite only a 15.5% decline in enrollment.
“It is unacceptable that while some districts receive massive financial assistance, Jackson is left to fend for itself, forcing devastating cuts to our schools,” Palmeri wrote. “I call on Governor Murphy and the New Jersey Department of Education to immediately step in and provide the supplemental aid that Jackson needs—without conditions—to keep our schools operational.”
Palmeri also voiced support for legal action against the state, referencing a decision last year by the Jackson Board of Education to authorize its attorney to challenge the funding cuts. While no lawsuit was filed at the time, Palmeri believes the latest developments leave no other option.
“Given this latest development, I believe there is no other choice but to file legal action against the New Jersey Department of Education,” he said. “As a Jackson councilman, I fully support those efforts to fight for the funding our students and schools rightfully deserve.”
The S2 formula, enacted in 2018, was designed to redistribute state education aid based on local tax contributions and enrollment figures. However, critics argue that the policy has disproportionately impacted suburban districts like Jackson, which have faced steep funding cuts despite continued needs.

The article just tells unfair the Murphy Administration is in school aid. Very disturbing how all democratic school district get a bump up in school aid and the republican district have a tremendous reduction in aid such as Jackson, Stafford, Toms River, Lacey and Brick. The students and taxpayers suffer in the districts.