Lakewood with children in schools who are non-mandated to receive busing will see skyrocketing costs this school year after a reduction in state aid to the township forced the Lakewood Student Transportation Authority (LSTA) to eliminate a long-standing municipal subsidy.

In a notice sent to the parents (see letter below) of approximately 20,000 children in town, the LSTA said the change will affect non-mandated students who live less than 2 miles from elementary school or less than 2.5 miles from a high school.

The increase stems from cuts to municipal aid for Lakewood included in the state’s fiscal 2027 budget. The LSTA said the reduction eliminated the $2.7 million township subsidy that had helped offset transportation costs for non-mandated students.

For the past 10 years, the LSTA has worked with Lakewood Township to provide busing to thousands of non-mandated students at a deeply subsidized rate. The arrangement helped keep transportation costs lower for families whose children attend nonpublic schools.

The state funding reduction now shifts more of that cost to families.

Students residing in Howell, Jackson and Toms River are not affected.