The State Board of Education has issued a decision that could set in motion major changes in how New Jersey funds its public schools.

In its January 4 decision in Bacon, et al. vs. New Jersey Department of Education, the state board concluded that New Jersey’s current school funding system—the Comprehensive Educational Improvement and Financing Act (CEIFA)—failed to provide a constitutionally required “thorough and efficient” education in the poor, mostly rural school districts that brought the suit.  Significantly, the board’s decision directs the commissioner of education to analyze, and develop changes to, the current system as it applies to all school districts.

The broadened scope arose from concern over the state’s failure to use its existing funding formulas since 2001.  The result has been significant shortfalls in state aid that affect all districts, the board found.

“The reality is that CEIFA’s fiscal provisions have not even been fully implemented for the past four years,” the board stated.  “…this fact negates the possibility of correlating the current educational standards that have been established under CEIFA to the actual costs of the inputs essential to a thorough and efficient education.” 

Fair and Adequate System  The New Jersey School Boards Association, a federation of the state’s local school districts, welcomed yesterday’s decision. 

“The State Board of Education recognizes the difficulty that stagnant state aid poses to local school districts,” said Edwina M. Lee, executive director.  “The commissioner of education’s analysis will play an important role in creating a school finance system that is fair and adequate for all students in New Jersey.  NJSBA stands ready to assist the commissioner in this effort.” 

Yesterday’s decision will require the commissioner to issue a report by March 1 that will include recommendations on the educational components essential to the establishment of a unified system for public education that “will equip all of the students of this state to perform their roles as citizens and competitors in the same society.” 

The state board concluded that it cannot by itself make changes in school funding.  It noted that its directive represents a first step toward establishing “a unified system for public education that fulfills the constitutional mandate” in terms of educational content and financing. 

Constitutional Issue  Often called the “rural district” lawsuit, Bacon was originally filed in 1997 by 17 southern and central New Jersey school districts that challenge the constitutionality of New Jersey’s current funding formula.  The suit contended that the districts do not have strong enough tax bases and their citizens do not have the personal income levels that would enable them to support the cost of state mandated programs.  Because of their financial situation, the districts believe they are similar to Abbott districts and deserve the same treatment under the finance system. 

In 2003, then Commissioner of Education William Librera issued a decision, which recommended that one of the districts, Salem City, receive Abbott status.  (As a result, in June 2004, the governor signed legislation granting the designation.)  The commissioner found that the remaining 16 districts failed to prove their claim.  However, based on the evidence presented, he directed evaluation and intervention in four of the 16—Buena Regional, Commercial Township, Fairfield (Cumberland County) and Woodbine, as well as in Salem City. 

Abbott Status Denied  In all, 10 of the original plaintiff districts appealed the commissioner’s 2003 decision to the State Board of Education. 

While yesterday’s state board decision did not grant Abbott funding status to these districts, it did find that the funding formulas under CEIFA were unconstitutional as applied to them.  Consequently, the state board directed the commissioner to conduct the following initiatives:

• Propose a needs assessment for the 16 districts by February 1, including a timetable for implementation.
• Submit results of remedial measures, ordered by the commissioner in 2003, in Buena Regional, Commercial, Fairfield (Cumberland County), Salem City and Woodbine.

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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.