District borrows $9 million after state delays its aid

What happened

At a special meeting on June 9, 2026 the board authorised a $9,000,000 State School Aid Anticipation Note. New Jersey told districts it would delay the June 22, 2026 state aid payment until about July 14 or 15, and East Orange had to borrow against that payment to cover its own bills in the meantime. New Jersey law allows these short-term loans for exactly this reason, and both the state education department and the county superintendent had to approve.

Why it matters to families

State aid is $191.5 million of East Orange's $271.5 million budget, roughly seven of every ten dollars, and the local tax levy has been frozen for three years. A three-week delay in one state payment was enough to force a $9 million loan, which shows how little cushion the district has and means interest costs that buy nothing for students.

The evidence

The June 9, 2026 approved minutes and the meeting agenda both carry the resolution authorising issuance of a $9,000,000 State School Aid Anticipation Note to fund the delayed June 22, 2026 state aid payment, reciting that the state will delay funding until July 14 or 15, 2026, that the district needs the money to meet cash-flow requirements, and that N.J.S.A. 18A:22-44.2 permits the borrowing with state and county approval.

The source