School Funding: Where We Need to Be

School Funding: Where We Need to Be

The Corzine administration 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 funding formula bill was expected to be introduced this week, and Gov. Jon Corzine wants it passed during the Legislature’s lame duck session, which ends Jan. 7.

After analyzing the proposal, participating in briefings and legislative committee meetings, and speaking 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 has expressed serious reservations about the bill during hearings and 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. 8. 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 education.

On Thursday, NJSBA sent an alert to all board members urging them to contact their lawmakers with the following concerns, based on Association policy:

Funding Giveback

The proposal would require approximately 120 districts to apply significant portions of their aid increases to tax reductions, rather than 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 study also shows that local school districts currently pay 57 percent of the cost of special education. For many districts, wealth equalized special education aid would result in local property taxpayers paying an even larger share.

Community Wealth Calculation

Because a larger share of state aid will be equalized, it’s critical that school district wealth truly reflect a community’s ability to pay for its schools.
The proposal continues the practice of basing school district wealth on a combination of property values and per capita income. It ignores the fact that communities can only tax property, and not income, for school purposes.
Property wealth alone is the best indicator of a community's ability to contribute to the funding of its schools.
The reliance on per capita income creates inequities in many districts that only serve to exacerbate the property tax burden faced by many homeowners.

Beginning, Not End If the Legislature enacts the new funding law by Jan. 7, its action should not be viewed as the end of the debate, but rather as the beginning of a new dialogue over school funding.

“NJSBA will closely monitor the law and will make certain that legislators hear from local school boards about changes needed to make our school funding system fair, equitable, sustainable and adequate,” said Marie Bilik, NJSBA executive director.

For the latest information, go to the school-funding section of NJSBA’s Web site.

Assemblywoman Mila M. Jasey, left, a former member of the South Orange-Maplewood Board of Education, speaks with NJSBA advocacy coordinator Ray Pinney, center, and Michael Vrancik, director of governmental relations, after testimony at the Dec. 27 Assembly hearing on the new school funding plan.