School budget elections would be eliminated, except for amounts over cap, the election of board members would move to November, and the state would apply a much more rigid cap to school budgets, according to recommendations released by the Joint Legislative Committee on School Funding Reform Wednesday. 

NJSBA Executive Director Edwina M. Lee commented on the recommendations, some of which the Association supports, others which it will oppose.

The school funding reform panel is one of four created as part of the Legislature’s special session on property tax reform.  Its final report lists 28 recommendations to be considered by the Legislature before year’s end. 

A New Formula  The 115-page document, which also provides sample legislation, recommends the following structure for a new school funding system:

• With the help of nationally recognized school funding experts, determine a per pupil base cost of a “thorough and efficient” education.  (Such an exercise has already been implemented by the state Department of Education.)
• Base funding on that T&E amount and also take into account extra costs for special education, and at-risk and English as a Second Language students.
• Consider cost-of-living differences in various regions of the state.
• Provide a minimum amount of state aid to every district.
• Base state aid amounts on a district’s property wealth and its residents’ income in comparison to the statewide median income. 

More than one-third, or 34 percent, of the state’s $30 billion annual budget goes to support public education from grades pre-kindergarten through 12, according to the report.  The average per pupil cost in New Jersey for 2006-2007 is $16,000.

Homeowners provide the vast majority of school costs through local property taxes. 

Other committee recommendations include – 

Hard Caps, Accountability, Mandates 

• Create a more rigid – or “hard” – budget cap, based on the Consumer Price Index, and adjusted only for changes in enrollment.  (The current cap is set at the greater of 2.5 percent or the inflation rate and can be adjusted for enrollment, certain capital outlay expenditures, hazardous-route transportation; special education costs per pupil in excess of $40,000; and start-up costs for new schools.)
• Amend the New Jersey Quality Single Accountability Continuum Act, (NJ QSAC – the state’s new monitoring system) to expand the education commissioner’s authority to conduct immediate comprehensive reviews and to clarify oversight authority.
• Eliminate “unnecessary state mandates.”  The panel cited several requirements recommended for elimination by a study commission in 2003, including the treasurer of school monies position, duplicative reporting requirements and mandatory school observances.  NJSBA had participated in the commission.
• Place Abbott district effienciency standards in state law and apply them to all districts.  Grant the commissioner authority to withhold a portion of any district’s state aid for failing to comply. 

Board Member Training

• Expand school board member training requirements.  Require re-elected and re-appointed board members, as well as new members, to undergo training in instruction and program, personnel, fiscal management, operations and governance.  Currently, new school board members must receive training in the New Jersey School Ethics Act and superintendent evaluation within the first year of office. 

Special Education

• Create a consistent tuition structure for out-of-district placement of special education students.
• Make adjustments for inflation to the current $40,000-threshold above which the state begins to provide additional funding for special education (“extraordinary cost” aid).
• Promote inclusion of special education students through changes to the state’s school construction law to expand capacity in local districts.
• Promote greater coordination of special education programming at the county level. 

Early Childhood

• Provide state support for preschool for all children in district factor groups A and B and for children who qualify for free and reduced price meals in all other districts.
• Provide state support for full-day kindergarten programs in non-Abbott districts.