East Orange vs. Montclair: Same School Funding System, Very Different Results

From East Orange to Montclair, two school districts just miles apart are navigating the same fundamental challenge: how to sustain quality education amid rising costs and an uneven school funding system.

East Orange spends roughly $32,000 per student. Montclair, just miles away, spends about $29,600 per pupil, based on state data compiled by local school budget analysts. Both districts operate under the same state funding formula — but the money lands differently, and so do the results.

The comparison highlights a broader pattern across New Jersey: higher spending does not always translate into greater access or better outcomes.

East Orange also serves a significantly higher percentage of low-income students and relies more heavily on state aid. Montclair benefits from a stronger local property tax base while facing its own budget constraints. The comparison illustrates how two districts in the same system, both spending well above the state average, can still diverge sharply in what they’re able to provide.  

Even as New Jersey ranks among the top states in education spending, allocating roughly $12 billion in K-12 aid in its 2026 budget and averaging about $26,990 per student, district leaders say disparities persist in how those dollars translate into resources on the ground.

High spending, uneven outcomes

For the 2024–2025 school year, the state reported an average “budgetary cost per pupil” of about $21,199, a nearly 10% increase from the previous year. Still, spending varies widely by district, with some communities exceeding $40,000 per student while others operate with far less.

The discrepancy is largely tied to New Jersey’s reliance on local property taxes—an approach that allows wealthier suburban districts to supplement state aid more easily than urban systems with lower tax bases. 

Research shows those funding gaps can directly affect student outcomes. A NJ Spotlight News analysis on school segregation and student achievement found that students in high-poverty and segregated districts often face reduced access to resources and lower academic outcomes compared with their peers in more affluent communities.

New Jersey’s school system also remains among the most segregated in the country, according to the “Segregated NJ” special report, which highlights how racial and economic isolation continues to shape educational outcomes.

In districts like East Orange, where the student population is overwhelmingly Black and Latino and a majority of students come from low- to middle-income households, the need for additional academic support, mental health services, and wraparound resources is more pronounced. By comparison, Montclair serves a majority white population and has a higher household median income of more than $150,000, according to U.S. Census data.

A system under pressure

In East Orange, Superintendent Christopher Irving said rising operational costs, particularly health care, utilities and food, are outpacing revenue growth.

“Revenues remain tight,” Irving said. “There’s only so much that we’re able to get from local taxes.”

In Montclair, Superintendent Ruth B. Turner described similar financial strain, despite the township’s relatively strong property tax funding.

“Montclair is currently managing a structural budget deficit,” Turner said.

The district must align recurring expenses with recurring revenue, she said, and those decisions are shaped by state aid, local taxes and voter-approved funding. That even Montclair faces a structural deficit underscores how the current system pressures districts on both sides of the funding divide. 

Teacher retention: where the money shows 

Across both districts, funding pressures are directly affecting teacher recruitment and retention.

Irving said compensation remains the dominant factor.

“We live in a time where cash is king,” he said, noting districts must sometimes prioritize higher salaries for hard-to-fill roles like science or math teachers.

That dynamic contributes to ongoing shortages in specialized areas statewide—particularly special education and bilingual education, Turner said.

Growing their own solutions

In East Orange, district leaders are attempting to counter staffing challenges through targeted programs like “Beyond the Bell,” an educator pathway initiative that allows paraprofessionals and support staff to earn teaching credentials while continuing to work.

Supported by grants and partnerships, the program reflects a broader “grow-your-own” strategy gaining traction across urban districts—where recruiting external candidates can be more difficult due to salary competition. By creating a pipeline of teachers from within the community, officials hope to improve both recruitment and long-term retention.

But Irving said such efforts operate within broader financial constraints. Limited funding affects not only salaries, but also workload, classroom resources and long-term stability. These are factors that influence whether teachers remain in the profession or move to better-resourced districts.

“If I could make one change,” he said, “it would be having the resources to offer more for teachers.”

Equity in student access

Funding disparities extend beyond staffing, shaping the educational experiences available to students. 

“The challenge is how we make sure every single child has what they deserve when resources aren’t in abundance everywhere,” Irving said.

In Montclair, Turner noted the district is addressing inequities internally through “right-sizing”: aligning staffing, programming and extracurricular offerings across schools. That includes standardizing programs such as world languages and evaluating athletics and extracurricular access.

“Our approach is grounded in equity and consistency,” Turner said. “We want students to have comparable opportunities regardless of where they are enrolled.”

A statewide balancing act

New Jersey fully funded its school aid formula in 2024 under Gov. Phil Murphy, marking a milestone after years of phased implementation. But policy experts say funding alone has not resolved longstanding concerns about equity, transparency and predictability in how aid is distributed.

Advocates, including plaintiffs in the long-running Latino Action Network v. New Jersey case, argue the system continues to produce de facto segregation—where a student’s ZIP code can influence access to resources, experienced teachers and academic outcomes. According to the ACLU of New Jersey, the lawsuit alleges the state has failed to address “racially segregated schools” that persist across districts.

For districts like East Orange and Montclair, the challenge is immediate: balancing rising costs, teacher retention and student needs within a system that funds them differently but fails them both, education advocates say.

Despite differing demographics and tax bases, both districts are navigating the same core question: how to turn record levels of education spending into equitable outcomes for every student.

As Turner put it, “This is a moment of necessary transformation.”