State Aid Profile – Quick Facts
Corzine’s plan is complex, but there are a few key figures in the State Aid Profile you should review to understand what the plan will mean for your school district and your property taxes. After reviewing the numbers, you can contact your representatives in Trenton here.
Local Fair Share: is the amount your distinct can afford to pay in school property taxes according to Corzine’s plan.
2007-08 Tax: is the amount of school property taxes actually paid in your district last year
Calculate Key Tax Number: Subtract the 2007-08 Tax amount from the Local Fair Share amount. The difference between the two amounts will be key to understanding the impact Corzine’s plan will have on your school district and your property taxes going forward.
A positive “key tax number” indicates your district could afford to pay more school taxes, while a negative number indicates your district might receive more school property tax relief in the future.
State Aid Summary
There are five key figures on the State Aid Summary Box you should review from your district’s State Aid Profile.
Equalization Aid: is the amount your district will receive for educating regular and gifted students, low-income (“at-risk”) students, limited English proficiency (LEP) students and combination “at-risk & LEP students.
Security Aid: is a new aid category Corzine added at the last minute as a “sweetener”.
Adjustment Aid: is used for districts that would otherwise not receive a minimum school aid increase of 2 percent based on formulas in Corzine’s plan.
Total 08-09: is the total property tax relief your distinct will receive from the state in school aid.
State Aid Difference: is the total school aid increase your district will receive over last year.
Using the Key Numbers - Example School District: LivingstonKey Tax Number from Wealth Summary: $16,484,961
This number is the difference between Livingston’s Local Fair Share and actual school property taxes.
This means that according to Corzine’s plan, Livingston could afford to pay $16,484,961 more in school property taxes.
Total 08-09 School Aid from State Aid Summary: $4,987,544
This is the total school property tax relief Livingston will receive from the state based upon Corzine’s aid proposal for next year.
Compare Total 08-09 school aid and the Key Tax Number:
According to Corzine’s plan, Livingston is paying $16,484,961 less than its Local Fair Share of school costs. Total school aid for the district is $4,987,544.
This means that according to Corzine’s plan, Livingston could afford to lose all of its state school aid. Should Corzine’s plan be adopted, without “sweeteners” and other ad hoc aid adjustments in the future, Livingston could eventually lose all school property tax relief.
Equalization Aid from State Aid Summary: $0
This means Livingston doesn’t receive any education aid under Corzine’s plan for its regular and gifted students, low-income (“at-risk”) students, limited English proficiency (LEP) students and combination “at-risk & LEP students.
Compare Corzine “aid sweeteners” to State Aid Difference
There are two major “aid sweeteners” Corzine has proposed for next year to help get his plan passed - Security Aid and Adjustment Aid. Neither aid category existed in previous years.
Livingston is slated to get $425,774 in Security Aid, but the district’s total aid increase is only $240,457 over last year. This means Livingston would have actually lost aid without this “sweetener”.
For a fuller explanation of the State Aid Profile based read this post.