P.O. Box 909 ● Trenton, NJ 08605-0909 ● Phone: 609.695.7600 ● Fax: 609.695.0413 ● Web: www.njsba.org/PI

NJSBA: State Budget Will Ease Property Tax Burden, Improve Education

TRENTON, March 20, 2008 — The governor’s recommended $533-million increase in school funding for 2008-2009 moves New Jersey closer to the goal of school property tax stabilization, a New Jersey School Boards Association official told the Senate Budget and Appropriations Committee today.

“Every dollar of state school aid represents a dollar that does not have to come out of the pockets of local property taxpayers,” testified Marie S. Bilik, NJSBA executive director.

[NJSBA’s testimony on proposed state budget]

Gov. Jon Corzine’s recommended budget calls for a $533 million increase in direct state aid to public school districts. The increase would come after six years of largely stagnant state aid, a situation that forced school districts to place greater reliance on property taxes to maintain education programs. 

Bilik pointed to a 2007 study by the Rutgers-Newark Institute on Education Law and Policy, which showed the property-tax impact of the state’s under-funding of school aid. According to the study, state under-funding of schools reached $846 million by 2005-2006. If that amount had been applied to property tax reductions, middle-income school districts could have lowered their school tax levies by 8.9 percent; poor non-Abbott districts by 20.2 percent, and the state’s wealthiest communities by 3.5 percent.

“The 2008-2009 state budget could be the starting point in turning the situation around,” Bilik told the committee. “By making our public schools a priority, it also takes some of the burden off property taxpayers.

She continued, “School districts that serve municipalities with some of the state’s highest tax rates are proposing budgets with property tax increases below the 4-percent levy cap, stable tax rates and, even, tax-rate reductions.

“However, the purpose of state funding is not just property tax relief. State school aid is also intended to help communities provide an adequate education for their children. Thanks to the recommended level of school funding, the 2008-2009 proposed budget is moving us closer to the goals of school property tax stabilization and education quality.” The NJSBA executive director provided examples of school districts that, she said, are now able to expand educational programs thanks to the additional aid.

The governor’s 2008-2009 school aid recommendations are based on the School Funding Reform Act of 2008, enacted in January. Bilik noted that the new funding law “is not perfect by any means,” and she pointed to concerns with the method of distributing special education aid and determining community wealth under the formula. “We will continue to seek changes in the funding law.”

Nonetheless, the NJSBA executive director noted that, in spite of the flaws in the new funding act, local school boards need the additional funding it provides, which is reflected in the proposed budget.

“The New Jersey School Boards Association supports the proposed state budget for 2008-2009 as it applies to our state’s public schools,” concluded Bilik. “And for the benefit of school children and property taxpayers, we strongly urge you to approve its recommended levels of school funding.”

The New Jersey School Boards Association, a federation of district boards of education, advocates the interests of school districts, trains local school board members, and provides resources for the advancement of public education.