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Massive $17M School Deficit: City of Hackensack Proposes Emergency Rescue Plan

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Hackensack Rescue Mission: City Council Proposes $6.5M Emergency Lifeline to Save Schools

the staff of the Ridgewood blog

HACKENSACK, NJ — In a dramatic move to prevent a total collapse of the local education system, the Hackensack City Council has scheduled an emergency vote for Wednesday, Jan. 28, 2026. The goal? A one-time $6.5 million transfer to the Board of Education to stop the immediate firing of nearly 100 teachers and staff.

The city is currently reeling from the discovery of a staggering $17 million budget deficit—a “manmade crisis” that has left parents, students, and educators in a state of shock.


The $17 Million “Financial Cliff”

The district’s financial woes came to light after a recent audit revealed a pattern of improper budgeting and “excessive hiring.” According to auditor Steven Wielkotz, the shortfall was fueled by:

  • The “COVID Hangover”: Using temporary federal pandemic relief funds to pay for permanent, ongoing expenses.

  • Staffing Surges: Despite a 6.5% drop in enrollment since 2019, the district’s staff grew by 20%—adding over 150 employees while tuition revenue from Maywood students vanished.

  • The Maywood Exit: The end of a sending-receive agreement with Maywood cost the district roughly $4.5 million in annual revenue.

Without this $6.5 million “bridge,” School Board President Jennifer Harris warned that up to 90 full-time positions could be eliminated midyear.


Why the City is Stepping In

City officials, including Deputy Mayor Agatha Toomey, argue that the $6.5 million transfer is the most “fiscally responsible” path forward for several reasons:

  • Avoiding a State Monitor: By stabilizing the budget, the city prevents the state from appointing a monitor, which would cost taxpayers an additional $208,000 per year.

  • Protecting Property Values: Widespread school instability and teacher layoffs typically lead to a decline in local real estate demand.

  • No Referendum Needed: This transfer bypasses a “potentially divisive” public vote, providing immediate relief without the delay of a ballot measure.

“We have a moral responsibility to the kids of this city,” said Deputy Mayor Toomey. “We have an obligation to support them while doing the right thing by our taxpayers.”


Legal Fallout and Next Steps

The crisis has already led to legal action. The school board is currently suing former Superintendent Thomas McBryde and a former business administrator, alleging that their “improper hiring practices” and mismanagement directly created the deficit.

Wednesday’s Double-Header Meetings:

  1. City Council Vote: 5:00 PM at City Hall.

  2. Board of Education Meeting: 6:15 PM at Hackensack High School.

If approved, the $6.5 million will act as a temporary shield, but the district must still implement a State-approved corrective action plan to address the remaining $10 million+ gap and avoid a projected $24 million deficit next year.

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2 thoughts on “Massive $17M School Deficit: City of Hackensack Proposes Emergency Rescue Plan

  1. Where did the city’s unencumbered $6.5 million come from?

  2. Cut expenses. It can be argued, but that is the solution. Done.

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