Ocean Gate is one of the smallest towns in New Jersey. Despite its size, it has its own school district containing just one elementary school.

This week, it became official that the school will close, and students will now move to schools in neighboring Berkeley Township.

The news was not unexpected, but still enough to bring Ocean Gate grandmother Kate Harmer to tears.

“I’m telling you right now, this school is the beating heart of this town, and they’re ripping it out. They’re ripping that school out of us,” said Harmer. “I can’t think of a nicer sound than hearing children laughing at recess, and I hear that every day.”

Ocean Gate Elementary dates back more than 110 years and currently serves fewer than 150 students. Administrators say yearly reductions in state aid pushed the district to its breaking point.

“These financial restraints were driven by state funding cuts, and the school building will be forced to close its doors next fall,” Superintendent Dr. Doug Corbett wrote in a letter to the school community.

A referendum to raise taxes by 27% to cover the $700,000 budget deficit failed to pass. Come fall, Pre-K through fourth graders will now attend Potter Elementary School in Berkeley Township. Older students will transition to Berkeley Elementary.

Some people who live in the town say Ocean Gate Elementary is truly the centerpiece of the community. In fact, some neighbors say that with it now closing, they’re out.

“People like me? I’m selling. That's a bad thing for me to say as a seller because everyone’s going to start selling. I’m telling you the truth. I’m going,” added Harmer.

While some parents tell News 12 that the tax hike was only going to be a temporary fix, others say it’s going to be difficult to move their children to a new setting.

“My daughter. She loves school, loves her friends. She’s also special needs, so making friends is hard for her. It’s a hard transition,” said Bridget Sullivan, a mom of a first-grade student.

“It was my entire childhood. It was so meaningful to me. Is the decision understood? Yeah, sadly, the decision is understood,” said Marianne Carroll, a parent and alum of Ocean Gate Elementary School.