New Jersey School Districts Relying Heavily on Local Property Taxes for School Budgets

According to the latest available data from the 2023–2024 school year, some school districts depend far more on local property taxes than others to run their schools. These districts typically have smaller populations, higher property values, or local spending levels that exceed what the state funding formula expects.

New Jersey uses a funding system that distributes more than $12 billion to public schools each year. This system considers factors such as student enrollment, community income levels, and a district’s ability to generate revenue through property taxes. Districts with wealthier tax bases are expected to contribute more locally, while lower-income areas often rely more heavily on state assistance.

In many affluent communities, however, the burden of funding schools falls largely on homeowners. This often results in higher property tax bills, even though these districts may already spend significantly per student.

The data shows that dozens of districts across the state rely on local taxes for roughly three-quarters or more of their total school revenue. These districts are spread across counties such as Bergen, Morris, Monmouth, Somerset, Union, Warren, Middlesex, Essex, and Gloucester.

At the lower end of the list, Edgewater Public Schools in Bergen County stands out as one of the most locally funded districts, with over 80% of its school budget coming from property taxes. Bedminster Township School District in Somerset County and Saddle River School District in Bergen County also show extremely high dependence on local tax revenue, both nearing or exceeding 78%.

Other districts such as Alpine, Branchburg Township, Riverdale, and Mount Arlington also fall in the upper range, where local taxpayers contribute the majority of school funding. These areas often report high per-pupil spending, sometimes exceeding $40,000 per student annually, reflecting both strong local investment and higher operational costs.

Mid-range districts on the list include communities like Old Tappan, Woodcliff Lake, Mahwah, and Mendham Borough, where reliance on property taxes remains above 75%. Even in these districts, schools continue to depend heavily on local revenue despite receiving some level of state assistance.

Further down the list, districts such as Haworth, Garwood, West Essex Regional, and Park Ridge also show significant reliance on local taxes, though slightly lower compared to the top-ranked communities.

The pattern across all 30 districts highlights a consistent trend: wealthier suburban areas tend to depend more on property taxes, while lower-income districts receive a higher share of state funding. This structure reflects New Jersey’s school funding formula, which is designed to balance educational opportunity but often results in unequal tax pressure across communities.

For residents, this means that school funding is directly tied to property values, local tax policy, and district-level spending decisions. While some communities can support high school budgets through strong local tax bases, others rely more heavily on state redistribution to maintain basic education services.

As property taxes remain one of the highest in the nation in New Jersey, the debate over fairness, efficiency, and sustainability of school funding continues to be a major public concern.

Sources:
NJ Advance Media
New Jersey Taxpayers Guide to Education Spending (2023–2024 data)