Death of a district: This NJ school is the latest casualty of the state funding formula

🔴 Ocean Gate Elementary will permanently close in June after a staggering loss of state aid.

🔴 Voters were faced with a massive 27% property tax hike to save the school.

🔴 Starting next September, the Ocean Gate Gators will be absorbed by another district.

OCEAN GATE — This small school will not open its doors next September after losing more than half of its state aid, according to officials.

Established in 1914, Ocean Gate Elementary is the only school in its district. It serves fewer than 150 students in Pre-K through sixth grade, according to the National Center for Education Statistics. And it will permanently stop serving those students at the end of June.

Ocean Gate school budget cuts and state aid loss

In the 2024-25 school year, the Ocean Gate school had a budget of $3.8 million. That same school year, the district received $346,000 in state aid.

That's a massive drop from the $951,000 in funding that Ocean Gate Elementary School received in 2019-20. The reduction was a result of changes to the state funding formula that gave $1.25 billion to Newark public schools.

While 10 figures in state aid flowed to Newark, a $700,000 budget hole grew for the Ocean Gate Gators. Superintendent Douglas Corbett said that cuts in state aid were the primary driver of the deficit.

New Jersey property taxes and the failed referendum

Property taxes would have needed to skyrocket by 27% to make up the difference. Around 68% of voters rejected that in a Jan. 27, 2026, referendum, in which fewer than 600 ballots were cast.

"This is an emotional moment but it is a transition not an ending. Ocean Gate’s spirit lives in our families, traditions, teachers, and the generations of students who carry our story forward," Ocean Gate school board President Richard Casey said.

Ocean Gate students to merge with Berkeley Township schools

While the students will have to adjust, they won't be left in the wind. Earlier this week, the Berkeley school board unanimously approved a measure to absorb Ocean Gate students for at least the next five years.

Students in grades five and six will go to Berkeley Township Elementary School, while all younger students will attend H&M Potter.

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