With a set amount of revenue and a growing list of expenses, school budgeting has become one of the most complicated public issues of the season. Last month, Governor Sherrill announced a record $12.4 billion investment in public K-12 education, but is that enough? Towns like Princeton, which approved its latest referendum and is expecting an increase in state aid, are finding it tough to make ends meet. The challenges become even more complicated in places like Robbinsville, where a March referendum failed, and which is expecting a decrease in state aid.
STATE AID
For most schools, revenue comes primarily through a local tax levy, combined with funding provided from the state. With taxes usually rising from year to year, it raises the question of why that does not keep up with the schools’ needs. The answer is that expenses beyond the district’s control, such as rising health care premiums, combined with controls on the amount that can be brought in, makes budgeting difficult.
Simply put, the school funding formula was created in 2008, under Gov. Corzine. Then in 2011, Gov. Christie instituted a tax levy cap of 2% for all NJ school districts. Together these policies worked well for most districts for about 10 years – but post-COVID, many are hitting a brick wall. Federal pandemic grants are no longer masking the additional needs, and the difference between costs and what can be collected is becoming glaringly real.
Though the state will be contributing $372 million more to school districts than it did last year, every district across the state is working to create realistic budgets without negatively impacting students.
We’ll examine how this challenge is being tackled in two districts: Princeton and Robbinsville.
PRINCETON BREAKDOWN
Princeton Public Schools (PPS) is in a strong position compared to many. It is expecting a 3% increase in state aid for 2026-2027. In terms of other revenue, it will receive the tax levy from Princeton residents which is capped at 2%, with some exceptions. Districts may exceed this cap to cover increased healthcare benefits, depending on how their costs compare to the state’s health benefits program. PPS’s increase is lower (the state’s is rising 31%), which will allow it to increase the levy by an additional 2.3% for healthcare. Also, from years when the max 2% was not used, districts can bank the difference. So, PPS also has $13,600 remaining from previous years to fold in. In total, with Board approval, PPS could increase the school tax levy by 4.33%.
In addition, PPS also receives Cranbury tuition, contributions (mainly from Princeton University), and this year $300,000 from the municipal PILOT agreement. Yet somehow, finances are still tight. Why? Healthcare premiums are rising roughly 15%, out-of-district tuitions are up 5.4%, maintenance has increased 4.9%, and transportation contracts could go up by 3.58%. PPS also has to cover a charge for Princeton Charter School, which went up $425,000 over last year. Additionally, a new municipal sewer charge of $100,000 is being added to the books.
“In terms of state aid, we enjoyed an increase of approximately 3.6%, but we lost 3% of our state aid last year, so our state aid is up about one-half a percent over the past two years,” explains PPS Superintendent Dr. Michael LaSusa. “Budgetary challenges are common across the state right now and many districts are in a state of crisis.”
Dr. LaSusa highlights districts like Tenafly (a community a lot like Princeton), which will see an 8.3% tax levy increase. Though high, it pales in comparison to Hoboken’s 27% increase in the tax levy – both impacted by health insurance premiums.
Beyond healthcare, the question remains: if a high-taxing municipality like Princeton is struggling, how do communities with lower-taxed residents afford to fund their schools?
“Some districts offer only a couple of world languages. Some districts have much larger class sizes. Some districts do not offer middle school sports. Some districts run half as many AP courses,” Dr. LaSusa adds. “Our community has invested in its schools because it values the programs that the district offers and has made the collective choice over time that it is important to provide a rich and robust set of learning opportunities that go beyond the minimum required by the state. We are committed to upholding this investment and this value proposition.”
ROBBINSVILLE’S SITUATION
While PPS has a $743,296 gap to fill, nearby Robbinsville Public Schools needs to make cuts of approximately $2.4 million to balance its budget.
In March, Robbinsville residents voted down a school referendum that would have helped meet the district’s needs. The hope was to get voter approval to exceed the 2% tax levy cap and raise $5,031,476 to avoid budget cuts. In addition, Robbinsville is one of two Mercer County districts seeing its state aid down 3%, the maximum allowable funding decrease.
“We are disappointed by the state’s decision to reduce aid to the Robbinsville Public Schools,” shares Robbinsville Superintendent Dr. Patrick Pizzo. “These cuts, coupled with rising costs and the rejection of the recent referendum, are forcing us to undergo staff reductions and make noticeable cuts to areas such as sports and clubs, courtesy bussing, curriculum programming and technology services to balance the budget. These limitations present several challenges, but I am confident our great team here in Robbinsville will work with what we have to continue delivering well-rounded educations for all of our students.”
At least 60% of the school budget goes to salaries and benefits. On top of numerous staff positions that have been cut in recent years, it is expected at least 20 more classroom teaching positions, and nine student-facing educator roles will be eliminated this year. Some additional support staff positions may also be cut.
POSSIBLE SOLUTIONS
To create its balanced budget, PPS will either have to make cuts or find new streams of revenue. Through attrition, reorganization, or moving staff into different positions, there are attempts being made to cut personnel costs. There is also a keen eye towards eliminating subscription services or memberships that are used for technological and other needs. There is additionally the opportunity to pool resources to help cut costs.
“We have entered into shared service agreements with the municipality in the past, most recently for tech support (this is not currently active). We also routinely enter into shared transportation agreements with other districts to lower transportation costs when we have a student that’s out of district and another district can transport the student for less,” details PPS Board of Education President Dafna Kendal.
PPS has considered pooling healthcare this year. Though our 15% increase is high, neighboring districts are seeing higher increases making it not in the district’s best interest to pool right now. It is possible that activity fees or facility use fees might need to be adopted to bring in extra revenue.
COSTS OF THE BUDGET
The Governor’s K-12 budget plan still needs to be reviewed by the Senate and Assembly as part of the Fiscal Year 2027 State Budget. Changes are unlikely but could be proposed before the budget bill is voted on and finally adopted by June 30th.
Across Mercer County, Ewing, Hamilton, Hopewell Valley Regional, Lawrence, Princeton, Trenton and Mercer County Vocational are expected to see state aid increases. East Windsor, Robbinsville and West Windsor-Plainsboro are all anticipating decreases.
It is the School Funding Reform Act that currently determines a district’s state aid for the year, capping certain categories. According to the NJ Department of Education, “The funding formula is applied uniformly to all districts. Aid fluctuates year to year based on evolving student and community needs, which include the district’s student enrollment, the proportion of low-income students, the number of students with limited English proficiency, and student grade levels.
The formula also considers a district’s ability to support its local schools. This is measured by property value and resident income, which determine the amount the community is expected to contribute to education funding. An increase in property values, a decline in enrollment, or an increase in transportation of students needing special transportation services can affect a school district’s funding amounts.”
It is widely recognized that the current formulas are not sustainable and more must be done. Just three months into office, Sherrill has stated a desire for her administration to “pursue strategies to help control higher costs facing school districts, particularly in employee benefits and healthcare costs, special education services, contracted services, and student transportation.”
While some initial reforms are proposed in the latest budget, more work is expected to modernize state funding levels.
Lisa Jacknow spent years working in national and local news in and around New York City before moving to Princeton. Working as both a TV producer and news reporter, Lisa came to this area to focus on the local news of Mercer County at WZBN-TV. In recent years, she got immersed in the Princeton community by serving leadership roles at local schools in addition to volunteering for other local non-profits. In her free time, Lisa loves to spend time with her family, play tennis, sing and play the piano. A graduate of the S. I. Newhouse School of Public Communications at Syracuse University, Lisa was raised just north of Boston, Massachusetts but has lived in the tri-state area since college. She is excited to be Editor and head writer for Princeton Perspectives!
(UPDATE 2/25/26: This event has been cancelled due to weather)
“This event is a lovely, low-key vibe, right in my hometown that I’m just proud to be a part of,” expresses musician Maria Palmer-Maurer, a singer-songwriter who describes her sound as adult contemporary folk pop. “It’s a personal event — with people right there with you, enjoying the moment and the music. I love sharing my art with my friends who know I write and play and I also love finding new people that appreciate song writing and original music by locals.”
There is so much to be taught, learned, sustained, treasured, remembered and maintained as life moves from one generation to the next. In a county as old as ours, there are centuries of information, valuables, and lessons that could be passed along. That is why we’ve dedicated the March issue of Princeton Perspectives to this topic: 
“The goal of this program is to create connection,” Leving adds. “It is consistent, every week, with the same child, so he knows you by name, and you know about his dog, sister, baby brother. Very often it’s not just reading because there are more questions. Small talk is very important. Sometimes in the middle of the page, they’ll ask or tell a story.”
Retired teacher, Caroline Purnell has been a GrandPal since 2022. Though she spent years teaching French, Spanish and ESL for adults, this latest venture fills her to the brim.
Joy and happiness is the ultimate goal for all of these programs. At 
“We hear such stories of lighthearted fun! From board games and cards to trips out for lunch to simple walks around the block, our pairs consistently show us that life is meant to be lived joyfully, with infectious smiles,” Winters adds. “How fortunate are younger generations to have the opportunity to speak to someone who has navigated life’s journey! How fortunate are older generations to find purpose in a fulfilling friendship! When we meet people with different experiences, our eyes are opened to another’s understanding of the world. The lessons we exchange help us grow in love and compassion – two things I think we could always use.”
Mercer County has made it a priority to preserve farmland. To date, more than 8,900 acres have been preserved countywide. There’s over 30,000 more acres preserved as park/conservation land. Included in these counts are 
A facility of the Mercer County Parks Commission since 1974, Howell Living History Farm has been a working farm for over 285 years. The Howells were the last family to own it (though it was mostly farmed by tenants), and the family’s daughter later donated it to the county with the hope that people could continue to experience life on a local farm for years to come.
“She cited things like remembering what it was like to reach under a hen and get a warm egg, helping her father shear a sheep or walking through the meadow with the sun across the Delaware. Remembering the smell of mint as she was helping cows get to the barn,” Peter Watson recalls. “She realized New Jersey’s rural and agricultural landscape was changing (in the mid-1970s) and she wanted their farm to become part of the experience people living now and, in the future, could enjoy and take from the way she had as a child.”
“We often see parents and children, or parents and their parents and their children, come together to visit the place. While they’re seeing the same things and having opportunities to watch and participate, I’m sure many older folks are reminiscing or thinking about changes that have occurred in their lifetimes. The younger people are thrilled at the environment they find themselves in with farm animals and beautiful streams you can cross on stepping-stones,” Watson explains. “People share together their experience at the farm, and that’s a really wonderful thing to have preserved.”
For three generations the Terhune family farmed their land, open to the public for three months each year to sell cider, apples, peaches and pears. Their 55-acre farm was purchased by the Mounts in 1975, which they’ve since turned into a 250-acre operation with over 60 crop varieties, a winery, farm store and that community center they’d always hoped for.
In the fall, their Van Kirk Road apple orchard is bustling with apple picking and the Cold Soil Road farm is filled with pumpkins and hayrides. Adults can read and explore with their little ones mid-week mornings and come back as a family to pick fresh fruit seasonally on the weekends. There is often live music, food for sale and the community takes advantage of this destination.
Reuwai’s children are all in college, and Tannwen’s are still locally in school, but they all know it is a place they can call home.
“I think he would hope they think of the Mount family and Terhune Orchards as a community center. A place where everyone is welcome,” Tannwen states. “We’re always open, we never close. Everyone can come and enjoy the open space and community center we have fostered as a family.”
The snow outside does not seem to be leaving, but there are a lot of other changes happening around us. From electrical bills, to vaccinations, immigration enforcement and real estate regulations, there is a lot to talk about this month. We delve into all of it for you in the February issue of Princeton Perspectives, 
New Jersey’s electricity rates are amongst the highest across the continental United States. In fact, residential prices rose more than 33% from June 2023 through June 2025. Last summer, customers saw prices spike sharply, and aside from some temporary account credits, few changes were made to help consumers ease this burden quickly. On inauguration day, January 20, 2026, New Jersey Governor Mikie Sherrill fulfilled a campaign promise when she enacted her first two Executive Orders, aimed at curbing the cost of electricity in the Garden State.
You may recall, last summer utility pricing (mainly electricity) sharply increased. This was due to the escalation of the supply portion of residential bills. The cause is a bit complicated, but simply put, expectations for high future electricity demands drove up the pricing (mostly due to increased Artificial Intelligence use and advances). The regional grid operator for New Jersey, 
“I’ve become very obnoxious around the house regarding utility use,” one reader shared. “Feeling cold? Put on a sweater. Still cold? Put on another sweater! Likewise in summer, we were more diligent about raising the AC temp on the second floor of our home (where the bedrooms are) during the day and reversing that at night when we don’t need cooling downstairs.”
Some readers shared they are excited to add solar energy to their home. It was also suggested more incentives for energy upgrades (such as buying electric cars or adding home insulation) could provide quick benefits now. NJ could also look to what other states are doing.
The Princeton-area’s energy company, PSE&G, controls the costs for delivery but can’t control the cost of supply – it just passes that on. But it has taken some efforts to help inform customers of their usage, which can make small inroads to reducing charges. A personalized monthly “MyEnergy” letter/email details your overall spend for the previous month and shares small changes that could be made. The messaging compares your usage to other homes nearby, of similar square footage, age and electrical abilities. In doing so, it helps determine where your energy is being used most (on heating, in the kitchen, doing laundry, etc.), so you can cut back if you are able and desire to do so. Additionally, it charts your electrical usage over time, from month to month, so you can see where you peak.
Whether you make any major household changes or not, the good news is that electricity supply rates will not go up this year, in fact they will go down slightly. On February 12, 2026, BPU certified NJ’s 25th annual electricity auction for Basic Generation Service (BGS), which re-prices one-third of the supply each year. This is the default electricity supply for most New Jerseyans (unless you have chosen a 3rd party supplier). The new pricing goes into effect on June 1st and this year a residential customer using 650 kwh per month will experience a monthly bill decrease of $3.23. It is not a huge amount but constitutes $38.76 savings for the coming year term. Additionally, customers will be seeing billing credits as required by Sherrill’s Executive Order. Now that pricing has been certified, the BPU board will next vote on what credit amounts will be issued and when. The Executive Order requires at least an initial set of credits must be issued by July 1, 2026.
There are residents of Princeton that are in hiding, families that are scared, and community members that are rallying behind them. Local leaders have spoken out and galvanized supporting resources. Schools have been on high alert and teachers have informed students to walk in groups and record encounters on their phones. The Princeton community has been impacted.
“In 2016, it was maybe three times it happened overall. Now it’s more aggressive. Now we have it every month,” a community member shares anonymously, adding that amidst the fears, others are stepping up to assist. “Community members are taking friends’ children to school because they’re too afraid of leaving their homes. It’s the good of the people. There are different groups, some getting them diapers, going to the market, taking all the risks to help. That never happened before.”
While many in the area understand and support legal immigration and deportation of criminal undocumented workers, there are also concerns about the targeting of longtime undocumented residents who are contributing to society. To ensure families are cared for after a member has been taken by ICE, municipal departments such as 
Sherrill signed an Executive Order banning ICE from launching any of their actions from state property. The Office of the Attorney General additionally created a 
While the majority of locals respect that immigration laws exist for a reason, many of the Princeton area’s undocumented residents have been here for decades. Their love of this community propels their supporters to hope things can happen differently. Whether it is the hiring of more judges and attorneys to enable more and frequent immigration court hearings, or the development of a path forward for rule-abiding lifelong Deferred Action for Childhood Arrivals (DACA) and other longtime residents. Many in Princeton’s welcoming community are hoping the system can become clearer or change.