Here’s Why So Many School Teachers And Aides Are Getting Laid Off In NJ

Local teachers and classroom aides continue to face mass layoffs as New Jersey enters the new school year. In August, 140 teacher aides at South Orange-Maplewood Public Schools were replaced by people who were new to the district, NJ.com reported.

This is the latest in a series of mass layoffs throughout the state’s public school system. In May, Paterson Public Schools approved an $851 budget that laid off 89 people, including 39 teachers and 50 non-certified and administrative staff members. The district also cut an additional 243 jobs through attrition and vacancies.

Jennifer Higgins, president of the American Federation of Teachers New Jersey, said three main drivers are affecting staffing at public schools: rising health-benefit costs, declining student enrollment, and declining birth rates.

The Insurance Issue

According to Higgins, health insurance costs have risen 34% for school districts still not subject to Chapter 78 copays. She added that the State of New Jersey has refused to require health insurance carriers to control costs, leaving schools with unpredictable prices and unclear reimbursement rates.

“The Sherrill Administration should be implementing and forcing the insurance providers, whether through legislation or executive order, cost-control measures on the part of the people…That would be a good place to start,” Higgins said.

Meanwhile, Laura Waters, managing editor of NJ Education Report, said that K-12 student enrollment is expected to fall by roughly 8% by 2030, resulting in lower school funding and staff budget cuts. Waters cited falling birth rates in New Jersey as a major cause of declining enrollment, along with these insurance-related issues.

The Immigration Effect

Likewise, Higgins stated that the federal government’s new immigrant policies have forced students who aren’t born in the U.S. or have foreign-born parents to leave the country, resulting in lower school enrollment. She said this was the case for Newark public schools, which lost a reported 744 multilingual students during the 2025-2026 school year.

The Sherrill Administration has made efforts to reform school funding in New Jersey and address these compounding factors. With the Fiscal Year 2027 budget, Sherrill plans to deliver $12.4 billion in funding for K-12 education, a $370 million increase from the previous year’s budget.

Looking Ahead

Regarding the School Employees’ Health Benefits Program, Maggie Garbarino, a spokesperson for Gov. Sherrill, shared this statement with NJ Urban News:

“The Sherrill Administration is committed to bringing everyone to the table to address the underlying drivers of rising health care costs, put the Program on a sustainable path for the long term, and deliver greater affordability for New Jersey’s educators, school employees, and families.”

However, education experts like Waters argue against focusing too much on preventing layoffs, citing the ways that overstaffing has led to these destructive outcomes. 

She claimed the State spent too much hiring an overwhelming number of staff using the $4.31 billion in federal pandemic relief funds, resulting in layoffs once the money ran out and student enrollment continued to fall. 

“I think we should be focused on how to create the best environment for learning for students, and that doesn’t always mean more teachers,” said Waters.

Although state leaders, experts, and advocates cited different reasons for the mass budget cuts and subsequent staff changes, the debate has highlighted the need for sweeping school reforms.