Lydia Maguire 
On Wednesday, October 22, more than 100 Montclair Public Schools educators and support staff were issued termination notices, a direct result of the district’s staggering $19.6 million budget deficit. For a town known as having some of the highest tax rates in the state, the news of the deficit and the resulting staffing and program cuts is hard to understand. Read on to know more about how we got here, who has been given notice, why this is happening now, and what is being done to solve the problem
How Did We Get Here?
Since July 2025, the new Superintendent Ruth B. Turner and Interim School Business Administrator Dana Sullivan have been working to address the fallout from years of financial mismanagement. The district’s financial troubles stem from a combination of overspending, weak oversight, and a disturbing pattern of unpaid invoices. Among the largest outstanding bills are $4.5 million owed to the Essex Regional Educational Services Commission (ERESC), $2.3 million in unpaid teacher salaries, $1.4 million in employee benefits, and $1.2 million for custodial services and utilities, among other past due notices. What was initially estimated to be an $11 million deficit in July has nearly doubled to a daunting $19.6 million by September. This total deficit includes $12.6 million accrued during the 2024-25 fiscal year (and before) and an additional $7 million for 2025-26.
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Despite ongoing efforts to communicate transparently with residents and explore possible solutions, Superintendent Turner issued a warning in early October that the district could run out of funds by mid-December if immediate action were not taken. Moreover, the financial crisis has strained relationships between the school district and the Montclair Township government. While the two entities work closely on many issues, the township has made it clear it lacks the resources to bail out the schools. At a September 26th, 2025, Town Hall meeting, Township Manager Stephen D. Marks stated plainly that the township cannot provide financial assistance to the district.
What Is Being Done?
To tackle the crisis, the school district has scheduled a special referendum vote for December 9, 2025. Voters will be asked to approve two important measures. The first proposes a one-time tax levy to cover the past deficit, while the second asks for a permanent increase in property taxes to cover the current year’s deficit, reduce the amount of staffing cuts still to come in January 2026, stabilize the district’s finances over the long term, fund a forensic audit to identify the causes of the crisis, and prevent further program and staffing cuts. If the referendum fails, the district would be forced to seek a loan from the state of New Jersey, which could result in a state-appointed monitor taking control of district finances and decision-making out of local hands, which could lead to even deeper cuts and program reductions. Other districts that have had state monitors reported further cuts in arts programs, sports, busing, and clubs while still having taxes increased (and a state monitor would have the authority to raise taxes even beyond the 2% cap with a waiver).
Why Were Certain Teachers Given Notice?
The pink slips issued this week are part of a state-mandated process for mid-year reductions in force (RIF) related to budget shortfalls. While the final impact depends on the referendum’s outcome, New Jersey law requires districts to provide affected staff with advance notice, usually between 60 and 90 days, before layoffs take effect. Northeast Elementary School Principal Dr. Joseph Putrino reassured families in a letter that “no final decisions have been made,” but emphasized the district’s legal obligation to begin this notification process to comply with employment laws and implored the community to exercise compassion, understanding, and empathy.
The district prioritized notification for positions that are not legally mandated by the state. Core curriculum and special education (both state-required) are protected; however, curriculum support teachers, kindergarten paraprofessionals, nurses, security personnel, counselors, technology teachers, world language teachers, secretaries, restorative justice teachers, other support staff, administrators, and specialists were all among the roles targeted for possible termination. Because New Jersey law requires that non-tenured teachers be laid off before tenured ones, educators without tenure or with fewer years of teaching faced the greatest risk.
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Where Does This Leave Us?
Montclair remains one of New Jersey’s highest-taxed municipalities, with home values averaging above $640,000. The district’s financial crisis has sparked public concern over how such a situation was allowed to develop in a community that values its schools so highly. Beyond the immediate impact on staff and students, the referendum’s outcome may influence the town’s property values and academic standing for years to come.
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