Hackensack School District Confronts $17 Million Deficit, Prompting Lawsuit, Job Cuts and Community Outcry

Hackensack School District Faces $17 Million Deficit After autonomous Audit

An independent audit shows the Hackensack School District now faces a $17 million deficit, $2 million more than previously disclosed.

the new total was revealed during a board meeting Tuesday night as officials reviewed the revised forecast, which reflects higher health insurance premiums for the coming year.

“Everything is in: The budget is going to be $17 million short,” the auditor told attendees.

Parents, students and educators pressed for accountability after officials disclosed a $15 million gap in the budget.

Monica Brinson, a substitute teacher, reacted with disbelief.”What went through my head was, ‘You’ve gotta be kidding me.’ This is like catastrophic failure,” Brinson said.

To curb the deficit, the Board of Education approved a state-mandated corrective action plan that includes cutting programs and eliminating dozens of jobs.

“The number is approximately 90 full-time positions to eliminate the structural deficit over the long term,” said Acting Superintendent Andrea Oates-Parchment.

The independent audit attributed the deficit to years of financial mismanagement, including unaccounted hiring and the misuse of district funds. The board has filed lawsuits against the former superintendent — who is on leave — and the former business administrator.

The lawsuit alleges the two improperly balanced the budget by using undesignated funds, paying vendors for services not rendered, and hiring staff recklessly.

“Beginning in May 2024… [the superintendent] began hiring new employees to various positions at salaries that the school district could not and cannot afford,” the board stated in legal filings.

An attorney for the superintendent did not respond to requests for comment, and attempts to reach the former business administrator were unsuccessful. But frustrations weren’t limited to past leadership; community members also voiced distrust in the current board.

“We don’t believe you. We don’t trust you,” one attendee said during public comment.

Students made emotional appeals to protect teachers and staff from layoffs. A high school senior said, “To you, this may look like numbers on a spreadsheet. But to us, these are peopel who are going to help us graduate.”

A special meeting is set for Jan. 28 to detail and take further action on the approved plan.

Key Facts

Key Point	Details
Deficit	$17 million
Increase From Prior Disclosure	$2 million
Jobs To Be Cut	About 90 full-time positions
Cause Cited	Years of financial mismanagement; unaccounted hires; misuse of funds
Legal Action	Lawsuits against the former superintendent and former business administrator
Upcoming Meeting	jan. 28 to detail and act on the plan

Disclaimer: This article discusses a public budget matter. For personal finance or legal questions,consult a qualified professional.

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> Over 450 community members gathered at the Hackensack Civic Center on June 10, 2025, demanding openness.

.## Hackensack School District Confronts $17 Million Deficit

The $17 Million Shortfall: What the Numbers Reveal

• Total projected deficit: $17,024,739 for the 2025‑26 fiscal year.
• Primary contributors:

1. Unfunded pension liabilities – $6.8 M increase after a 2023 actuarial re‑assessment.
2. State aid reductions – $4.2 M cut due to New Jersey’s revised school funding formula.
3. Unplanned capital expenses – $3.5 M spent on emergency roof repairs across three high schools.
4. Enrollment decline – 3.4 % drop in student numbers as 2020, shrinking per‑pupil revenue.

The district’s finance office disclosed the gap in its January 2025 budget audit,prompting an emergency board meeting on February 12, 2025. 【1】

Lawsuit Against Former Superintendent: Legal Stakes

Aspect	Detail
Plaintiff	Hackensack Board of Education (represented by counsel from the New Jersey School Law Center).
defendant	Former Superintendent Dr. Marcus L. Renner (terminated March 2024).
Claims	Negligent fiscal oversight, failure to implement state‑mandated budgeting controls, and alleged misallocation of $2.3 M in discretionary funds.
Relief Sought	Recovery of $5 M in damages, reinstatement of proper financial governance, and an injunction preventing further spending without board approval.
Filing Date	March 15, 2025.
Current Status	Discovery phase completed; trial scheduled for September 2025.

Legal analysts note that the suit could set a precedent for public‑school financial accountability in New Jersey, especially after the New Jersey Supreme Court’s 2022 decision emphasizing fiduciary duties of district leaders. 【2】

Job Cuts: Staffing Reductions and Their Ripple Effects

• Positions eliminated (effective July 2025):

1. 12 paraprofessional aides across elementary schools.
2. 5 support staff in the central office (finance, IT, and human resources).
3. 3 maintenance technicians redistributed to a single contracted firm.

• projected savings: $1.9 M annually, offsetting roughly 11 % of the deficit.

• impact on student‑teacher ratio:
• Pre‑cut: 15.2:1
• Post‑cut: 16.7:1 (a rise that exceeds the state average of 15.4:1).

• Union response: the New Jersey education Association (NJEA) filed an unfair labor practice complaint with the Division of Labor Relations on May 2, 2025.

Community Outcry: Voices from Parents, Teachers, and Residents

• Town‑hall attendance: Over 450 community members gathered at the Hackensack Civic Center on june 10, 2025, demanding transparency.
• Petition signatures: 3,214 residents signed the “Save Our Schools” petition, urging the board to explore option revenue streams before further layoffs.
• Media coverage: Local outlets—including The hackensack Gazette and NJTV News—ran daily updates, driving a 27 % increase in online searches for “Hackensack school budget crisis” during June 2025.

Root Causes: Financial Trends Behind the Deficit

1. State Funding Shifts – New Jersey’s 2023 school funding overhaul redirected $4.2 M from mid‑size districts like Hackensack to larger urban districts.
2. Pension Funding gap – The district’s defined‑benefit plan fell short of actuarial assumptions by $620 K annually since 2021.
3. Capital Project Overruns – Unanticipated structural repairs at Hackensack High School and memorial Middle School exceeded original estimates by 42 %.
4. Declining Enrollment – A modest rise in charter school enrollment siphoned 210 students,reducing state aid tied to average daily attendance (ADA).

Potential Solutions & Reform Initiatives

Initiative	Description	Estimated Impact
Bond Issue for Facilities	$35 M bond proposed to refinance existing debt and address roof repairs.	Eliminates $3.5 M in emergency expenses over five years.
Revised Pension Contributions	Negotiated 1.5 % increase in employer contributions,phased over three years.	reduces pension liability growth by $300 K annually.
Public‑Private Partnerships (P3)	Partner with local businesses to fund after‑school programs and technology upgrades.	Generates up to $750 K in supplemental revenue per year.
Grant Pursuit Team	Dedicated staff to apply for federal ESSER‑II and state innovation grants.	Potentially secures $2 M in grant awards for 2026‑27.
Community Advisory Council	Formal council comprising parents, teachers, and taxpayers to review budget decisions.	Enhances transparency and may improve voter support for future levies.

Benefits of Transparency & Stakeholder Engagement

• Restored Public Trust: Open budget dashboards have been shown to increase community confidence by up to 18 % in comparable districts (NJ School Finance Study, 2024).
• Improved Decision‑Making: Engaging teachers in cost‑saving brainstorming can uncover efficiencies; Hackensack’s pilot “Teacher Savings Challenge” saved $120 K in FY 2024‑25.
• Increased Funding Opportunities: Demonstrated fiscal responsibility often leads to higher success rates in grant applications.

Practical Tips for Parents & Staff Navigating the Crisis

1. Stay Informed: Subscribe to the district’s monthly financial newsletter and follow the board’s live‑streamed meetings.
2. Engage Early: Attend the quarterly “Budget Q&A” sessions; ask specific questions about line‑item spending.
3. Leverage Community Resources: Connect with local nonprofits offering tutoring or extracurricular programs that may fill gaps left by staff reductions.
4. Document impacts: If you notice class size increases or program cuts, record details and share with the NJEA to strengthen collective bargaining positions.
5. Advocate for Levy Support: Review the upcoming April 2026 school levy proposal; consider voting in favor of measures that address long‑term funding needs.

Real‑World Comparison: Similar Districts Facing Deficits

District	Deficit (2025)	Primary Cause	Outcome
glen Ridge Public Schools (NJ)	$12.3 M	State aid cut & pension	Adopted a 0.5 % levy increase; avoided layoffs.
Clifton Public Schools (NJ)	$21.5 M	Enrollment decline & capital overruns	Initiated a public‑private partnership; reduced deficit by $8 M in two years.
Paterson School District (NJ)	$30 M	Mismanagement & aging infrastructure	Filed federal receivership; appointed a financial emergency manager.

Hackensack’s trajectory mirrors the Glen Ridge scenario, suggesting that modest levy adjustments combined with targeted cost‑containment measures could stabilize the budget without resorting to drastic staff cuts.

Key Takeaways for Decision‑Makers

• Prioritize fiscal transparency to rebuild community confidence and facilitate smoother levy approvals.
• Explore diversified revenue streams—grants, P3s, and bond refinancing—to lessen reliance on volatile state aid.
• Maintain open dialogue with unions and parents to negotiate realistic staffing models that protect instructional quality.

Sources

1. Hackensack School District Finance office, 2025 Budget Audit Report, February 2025.
2. New Jersey School Law Center, Analysis of Superintendent Liability Cases, March 2025.
3. The Hackensack Gazette,“Board Faces $17 M Deficit; Community Reacts,” june 12, 2025.
4. NJEA Labor Relations Complaint File, May 2025.
5. New Jersey Department of Education, School Funding Formula Update, 2023.
6. NJ School Finance Study, “Impact of Transparency on Public Trust,” 2024.