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Home Opinion Commentary New Jersey’s state budget shreds new school aid formula

New Jersey’s state budget shreds new school aid formula

Students in "high needs," majority/minority districts lose most

BY DAVID G. SCIARRA
EDUCATION LAW CENTER, EXECUTIVE DIRECTOR
ANALYSIS

The NJ Legislature's passage of the FY10 State budget in late June makes it official.

The State has abandoned funding public schools based on the levels of educational need set in the new school aid formula — the School Funding Reform Act (SFRA) of 2008.

Once again, school funding has retreated to backroom horse-trading over the State budget, where aid levels are based on how much politicians want to spend in any given year, not on what the new formula prescribes for a "thorough and efficient" education.

The result: a budget cut of $303 million in basic SFRA school aid — called "equalization aid" — to 325 school districts. Legislators also cut aid to expand the effective Abbott preschool program to 6100 children in districts with poverty levels above 40%, and to an as yet undetermined number of low-income children in middle class and wealthy districts. The cut in SFRA preschool aid could top $50 million.

These cuts mean that SFRA had a shelf life of only one year — 2008-09. Full funding for "at risk" students and for preschool expansion were key "selling points" to secure legislative enactment of SFRA by one vote last year. Now both are gone. Even Governor Whitman's 1996 formula was used to fund schools for four years until it, too, was cast aside in 2002.

ELC has analyzed the impact of the $303 million cut in SFRA formula aid on students in districts designated as "high needs" by the NJ Department of Education. "High needs" districts have more than 40% low-income or "at-risk" students, and are performing below State standards on the 3rd, 8th and 11th grade assessments.

The analysis shows that 44 of these high needs districts lost $94.7 million, or almost one-third of the total $303 million cut statewide. These districts enroll 153,034 students, 76% Black and Latino and 58% at-risk. The per-pupil aid cut in the high needs districts is double that in other districts — $635 per pupil compared to $312 per pupil — largely due to the lower wealth and higher poverty rates.

Bottom line: under-performing, high poverty, and majority Black and Latino school districts are bearing the brunt of the Legislature's decision to ignore SFRA and cut mandated formula aid.

Table 1 and Figure 1 summarize the ELC analysis. Chart of the 44 high needs districts experiencing an aid cut, below.

Figure 1: 2009-10 State Aid Cuts by Category in High Needs Districts

High needs districts are under specific state and federal directives to improve programs and performance. 33 of the 44 high needs districts experiencing an SFRA aid cut have "schools in need of improvement," and 5 are "districts in need of improvement" under the No Child Left Behind Act. Schools and districts in this category are under a federal "turnaround" mandate.



Last Updated ( Wednesday, 29 July 2009 05:49 )  
Comments (3)
3 Friday, 31 July 2009 15:37
Mad is Right
@Someone who cares

Can you cite to where the "tremendous" gains in test scores were made? What districts had gains? What grades? How much? Don't bother because all you are going to find is a slight uptick in 3 and 4th grade language arts scores that happened a few years ago and have now more or less reverted to where they were before Abbott parity funding. Furthermore, when those kids were tested a few years later those gains had evaporated and they tested at the same low levels as before. Basically money for nothing.

You are confused about what is good for the kids and what is good for the adults in the educational system. Abbott was very good for the teacher's unions in those districts because they were able to obtain greater salaries and grow their membership, thereby increasing their local clout and control over the Board of Education. In turn they were able to negotiate more and more burdensome contracts with all kinds of insane tenure rules as well as lavish perks and benefits. This is where the money went, not to new buildings or air conditioners or books etc. The state wasted additional billions on its crooked School Construction office which squandered its funding and built very few schools.

Like you, I do want educated kids who can lead us in the future. However, Abbott did nothing to make this a reality. These urban districts are broken and the only remedy is parental control over the districts and a choice over where their children are educated. Anything less is bound to fail because the education cartel cannot be trusted to use the money it has been given wisely and for the benefit of children.
2 Thursday, 30 July 2009 16:52
Someone who cares about NJ's kids
I thank God that Sciarra and the ELC are looking out for NJ's poorest kids. While the worse elements in the Legislature crudely (with thinly veiled racism) label the Abbott districts was wastes, thousands of students face their futures in under-funded schools. When the State is short of money, its easy for Legislators to demonize and steal from our biggest school districts. In these communities, there are few if any other interest groups that stick up for those children who have no other voice speaking on their behalf. Money may not be the only answer to better schools, but I don't know what else helps to install air conditioning, hire teachers, aides, and counselors, repair old facilities, and supply textbooks and computers. The State can't have it both ways - they claimed Abbott funding was unfairly biased towards the poor districts and a new formula would fairly direct aid to "students, not zip codes." Now they artificially deny money to the students that would gain funding for their schools, simply because of those same zip codes. Despite what some bloggers may claim, there have been tremendous increases in student test scores since the Abbott instructional programs have been created, especially at the elementary level. What do you want NJ, low taxes or a system that produces smart kids who can find jobs and lead us in the future?
1 Thursday, 30 July 2009 01:22
MadInNJ
The old line about the three kind of lies - Lies, Damn Lies and Statistics never held truer. The State of NJ hemorrhaged cash in the past 12 months, especially from the Income Tax collections (the amnesty notwithstanding), and the governor still managed to fund public education at or above the same level as 2008/09, and this guy is CRYING because the Abbott districts finally saw a SLIGHT diminishment in their state funding so that some of the slightly less worse districts could finally get a bit more. OMG. Shut Up. These districts have been bleeding NJ dry for decades. Why not ask local taxpayers to put up a bit more (or in the case of Camden, SOMETHING, since they pay NOTHING today). Most of these districts receive between 15 & 20K per child from the state. Meanwhile, the suburban districts get by with $1,000 or less, with the balance being made up by their local taxpayers! The same local taxpayers who pay 99% of the Income Tax which the NJ Supreme Court, at your insistence, that then gets shoveled into the Abbott districts.

Time to suck it up and find out how the rest of the world lives.

P.S. You might find more sympathy if the results of all that money hadn't been NO CHANGE in educational progress.

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