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Unless the state changes the formula for calculating school aid this problem will not be resolved no matter who is in charge. What will happen is that class size will grow to 50 or more students per class. No one will get a good public education but they will have all mandatory courses.
As far as merging the school district is concerned, you would need to combine at least 5 other school districts in order to dilute the percentage of private school students in the school district and the public school parents in those districts wouldn’t want to lose the control they have over their district . What the state may do is split the district so that the Jews have their district and the public school supports have their district. The only problem is the public school district will not have a viable tax base to support it and they may have to merge with surrounding a school district this would similar to Kiryas Joel.