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

School Funding — Where We Need to Be

TRENTON, January 3, 2008 — NJSBA President Kevin E. Ciak sent the following message to the state's local board of education members today.

Governor Corzine has proposed a $530 million statewide increase in education aid, resulting in a significant infusion of funds to a large number of school districts. The school funding bills, S-4000 (Buono) and A-500 (Roberts) will be formally introduced today and considered in Senate and Assembly committee.

The administration and Democratic leaders in the Legislature remain resolute in having the bills pass during the lame duck session, which disbands early next week. 

Following its analysis of the proposal, participation in briefings and legislative committee meetings, and conversations with lawmakers and administrative officials, NJSBA is taking the following stance on the School Funding Reform Act of 2008:

• NJSBA will not ask the Legislature to postpone action on the bill until after the lame-duck session.
• Neither will NJSBA categorically "support" the legislation.
• NJSBA continues to express serious reservations about the bill during meetings with lawmakers. It urges members to contact legislators with critical concerns that affect their districts' schools.

Some advocacy groups have called for delaying action on the School Funding Reform Act of 2008 until the new Legislature convenes on Jan. 7. The reality, however, is that postponing action could easily lead to a scenario where all districts receive about the same amount of aid as last year. For too many school districts, another year of "hold-harmless" aid would simply repeat the exercise of trying to figure out what programs to cut simply to make ends meet. That’s gone on for too many years; it is not how an education aid system should work.

At the same time, certain aspects of the Corzine proposal do not represent a fair and functional approach to state school aid. NJSBA, for example, strongly objects to wealth equalization of special education funding. It also opposes the forced give-back of aid increases by approximately 120 districts — a move that makes the proposed formula more about tax rates than about education.

Beginning, Not End, of Dialogue If the Legislature enacts the new funding law by Jan. 7, its action should not be viewed as the end of the debate. Rather, it should represent the beginning of a new dialogue between legislators and local school board members over school funding. NJSBA will closely monitor the law and is committed to making certain that legislators hear from local school board members about the changes needed to make the school funding system fair, equitable, sustainable and adequate.

Concerns about Plan Below are points that summarize two of the concerns that local school board members should consider presenting to legislators, based upon the proposed formula’s impact on their schools. School board members can find contact information for their legislators at www.njsba.org/govrel.

Funding Giveback

• The proposal would require approximately 120 districts to apply significant portions of their aid increases to tax reductions, rather than to maintaining school programs.
• NJSBA shares the Legislature's concern about the over reliance on property taxes to fund schools. However, the primary goal of state school aid is to fund education programs. In the process, tax relief would likely result.

Wealth-Equalized Special Education Aid

• Wealth-equalized special education funding could result in fewer resources for children with special needs.
• A September 2007 NJSBA study shows that learning and physical disability knows no economic boundaries.
• The same study also shows that local school districts currently pay 57 percent of the cost of state- and federally required special education. For many districts, wealth-equalized special education aid would result in local property taxpayers paying an even larger share of special education costs.

THE SCHOOL FUNDING REFORM ACT OF 2008

The following is a brief run-down of where NJSBA stands on various provisions of the bill.

What We Like

• The goal of a unified funding formula for all school districts — Abbott and non-Abbott.
• $530 million more in school aid.
• Infusion of aid to many moderate- and middle-income school districts.
• Recognition that full-day kindergarten is a component of a thorough-and-efficient education.

What We Don't Like

• Requiring 120 districts to direct part of their state aid increases to tax reduction, rather than the classroom.
• Basing a district's ability to pay for education on both its property wealth and personal income levels. NJSBA believes that property wealth is the best indicator of community’s ability to pay for its schools.
• Giving the commissioner of education the sole authority to adopt and implement regulations to carry out the funding plan, without any involvement by the State Board of Education.
• Unanswered questions: No data has been made available to assess the impact on districts that spend at the adequacy level and tax at their fair share.

NJSBA's BoardBlog, www.njsba.org/blog, and its school funding page, www.njsba.org/fundingformula, will report on developments as the Legislature considers the funding legislation.

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.