FACING $175M IN AID CUTS, TOMS RIVER PREPARES FOR CHAPTER 9 BANKRUPTCY

In a historic move, the Toms River Regional School District voted to pursue Chapter 9 bankruptcy rather than pass a 13% property tax hike on top of last year’s 9.3% increase. The decision comes amid a $26 million budget shortfall and years of state aid cuts totaling $175 million.

The district, one of the largest in New Jersey, says it can no longer function under the state’s school funding formula, calling the bankruptcy a last-resort lifeline—not a gimmick.

“This isn’t political. It’s survival,” one board member said. No formal bankruptcy filing has been made yet, but the district is preparing legal steps. The move could pause debts, protect services, and force negotiations with the state and creditors.

Meanwhile, Trenton officials warn that without a certified budget, the district risks a state takeover or shutdown.