The New Jersey Department of Education has posted the school spending and state aid details for each district based upon Governor Jon Corzine’s proposed plan.

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: Livingston

Key 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”.

More Information
For a fuller explanation of the State Aid Profile based read this post.

You can now view your school district’s State Aid Profile based on Governor Jon Corzine’s school spending and state aid program.

To help you understand Corzine’s plan and the State Aid Profile, we’ve created this post to guide you along using the Livingston school district as an example. Livingston is represented by Senator Dick Codey, Assemblywoman Mila Jasey and Assemblyman John McKeon.

First, an overview of Livingston’s school aid for next year. As you can see from the chart below, Livingston’s property tax relief is limited to special education, transportation and security aid. The school district won’t receive any state aid for education.

Click to Enlarge

Now, on to an overview of the School Aid Profile using the Livingston school district as an example.

School Aid Profile - Property Tax Relief

Click to Enlarge

Understanding The State Aid Profile

Wealth Summary - Your Fair Share Of School Costs

First, look at the last two lines in the third box, which is labeled Wealth Summary. Here you will see an amount for Local Fair Share and 2007-08 Tax.

Local Fair Share is an amount your distinct can afford to pay in school property taxes according to Corzine’s plan. The amount shown next to 2007-08 Tax is the amount of school property taxes paid in your district last year. The difference between Local Fair Share and 2007-08 Tax is the amount of school aid your district is entitled to under Corzine’s plan.

The following is Livingston’s Wealth Summary chart from the Aid Profile.

Livingston’s Local Fair Share is $16,484,961 more than the school taxes the district paid last year. Therefore, under Corzine’s plan, Livingston is not entitled to any state aid. However, the Governor has agreed to “sweeten” the deal for next year and provide some forms of state aid to districts with a Local Fair Share that’s greater than actual school property taxes paid.

Districts with a Local Fair Share figure greater than the property tax figure are vulnerable to state aid cuts in future years.

State Aid Summary – Your Share of Property Tax Relief

To see the total aid your district received last year and a breakdown of state aid your distinct will receive next year, look at the first box in the Aid Profile, labeled State Aid (K-12) Summary. The chart for Livingston is shown below:

The total shown under FY08 is the amount of state aid your school distinct received last year. School Aid for FY09 is broken by various aid categories: Equalization Aid, two lines for special education student aid (Spec Ed Cat and Exord), Transportation Aid, Security Aid and two lines for aid adjustments (Adjustment Aid and Education Adequacy Aid).

Equalization Aid – State Aid For Education

Equalization Aid is the amount of property tax relief your district will receive under Corzine’s plan for the cost of educating students. This amount comprises aid for all students, including low-income (“at-risk:”), limited English proficiency (LEP) and those who are both low-income and of limited English proficiency (Comb).

Education aid per student is equal to the amount of Equalization Aid divided by the projected 2008 enrollment for your distinct.

Livingston will not receive any Equalization Aid under Corzine’s plan based on the district’s student enrollment and Local Fair Share.

Enrollment Summary – The Students In Your School District

Look to the middle box of the Aid Profile, which is labeled Enrollment Summary, to see your district’s enrollment in 2000, 2007 and projected for 2008. This box also provides a breakdown of students receiving free and reduced price lunches (at-risk), of limited English proficiency (LEP) and students who are both low-income and of limited English proficiency (Comb) who are enrolled in your district.

Livingston’s Enrollment Summary chart from the Aid Profile is show below:

The Livingston school distinct has students enrolled in all three “special needs” categories, but the district will not receive any state aid for their education. State education aid does not “follow the child” under Corzine’s plan.

Special Education Aid

Your district’s special education property tax relief is the sum of categorical special education aid (Spec Ed Cat) and extraordinary special education aid (Exord) as shown on the Aid Profile.

Seventy-nine percent of Livingston’s school property tax relief comes from special education aid. The distinct is slated to receive a total of $3,918,063 for special education students next year.

Categorical Special Education Aid

The Enrollment Summary does not provide special education student enrollment figures. It’s unnecessary, because under Corzine’s plan, Categorical Special Education Aid is not based upon the actual number of students receiving special education in your district. The plan uses a formula to arrive at a hypothetical number of special education students for aid calculation - your district’s total student enrollment multiplied by 14.69%.

Categorical special education aid is $3,632.33 per special ed student, adjusted slightly up or down depending upon the cost of living in your county.

Livingston will receive $3,243,212 in categorical special education aid. That amount is based on $3,788.80 per special ed student multiplied by 856, the number of hypothetical special education students in the Livingston school district.

Extraordinary Special Education Aid

Extraordinary special education aid (Exord) is allocated based upon the actual education costs of specific students in your district. The Extraordinary aid your district will receive is equal to 75% of the special education costs above $40,000 for educating a student in-district and 75% of the costs over $55,000 for educating a student in an out-of-distinct placement.

For the Livingston, this means that the district will receive $3,788.80 in Categorical Special Education Aid for the first $40,000 the district spends for a student with extraordinary special education needs, plus 75% of the costs above $40,000 in Extraordinary Special Education Aid. That’s assuming the student can be accommodated within the local school system.

For students with special education needs requiring an out-of-district placement, Livingston will receive $3,788.80 in Categorical Special Education Aid for the first $55,000 the district spends for the student, plus 75% of the costs above $55,000.

Livingston is slated to receive a total of $674,851 in Extraordinary Special Education Aid.

Transportation Aid

The Aid Profile provides the transportation aid your district will receive without providing any explanation of how the aid was calculated. However, Corzine is proposing to update the formula in the future based upon recommendations of the new Executive County Superintendents.

Until then, Livingston is slated to receive $643,707 in Transportation aid for its 5,826 students, an average of $110.49 per student. Transportation aid represents 13 percent of the district’s school property tax relief.

Security Aid

This is a new category proposed in Corzine’s plan that will provide security aid on a per student basis. Your district will receive $450 in aid for each low-income (“at-risk”) student enrolled in your district and $70 each for all other students.

Livingston is slated to receive $425,774 in security aid, which represents 8.5 percent of the school aid the district will receive. Without this new aid category, Livingston would have actually have received less school aid than last year. This means the district lost aid in other categories under Corzine’s plan.

Adjustment Aid

The Adjustment Aid category is used for districts that would otherwise not receive a minimum aid increase of 2 percent next year under Corzine’s plan. If your district has an amount in this aid category, consider this as a warning from the Governor. According to Corzine’s plan, your school district is spending too much, not paying its local fair share in property taxes or both.

Education Adequacy Aid

Education Adequacy Aid is limited to those districts receiving aid in this category last year and meeting the following criteria for this year. Your district will be eligible again this year if your district: 1) is not spending an adequate amount per student and 2) is considered failing and/or overburdened by property taxes.

Corzine plans to phase out Education Adequacy Aid within three years.

Governor Corzine has proposed a $711,836,000 adequate school budget for the Newark school district and $707,109,000 in state aid. That represents a 2 percent increase in state aid over last year.

Based upon Newark’s student enrollment of 44,720 students, Corzine’s spending and state aid per student is as follows:

Corzine’s Proposal – Newark District
Adequate budget per student: $15,918
State aid per student: $15,812
Funds per student required from Property Taxes and/or Federal Aid: $116

According to this press release, Senate Republican Leader Leonard Lance, Assembly Republican Leader Alex DeCroce, and Senate Republican Leader-elect Thomas Kean have a better idea.

The Republican leaders propose a 3.5 percent increase in state aid for the Newark school district, bringing the total to $717,507,475.

Based upon the Republican proposal, spending and state aid per student for Newark would be as follows:

Republican Proposal – Newark District
Adequate Budget per student: $15,918
State Aid per student: $16,044
Funds per student required from Property Taxes and/or Federal Aid: - $126

Truly mind boggling.

Update: We thought you might be interested to see how the hometowns of Republican Leaders make out under Corzine’s plan and the one Lance, DeCroce and Kean were scheduled to introduce today. Here are the details

Leonard Lance, Flemington

Corzine Proposal Flemington
Adequate Budget = $38,886,199
State Aid = $7,612,601
Enrollment = 3,412
Adequate Budget per student = $11,397
State Aid per student = $2,231
Funds per student required from Property Taxes and/or Federal Aid: $9,166

Republican Proposal Flemington
No Change from Corzine plan

Alex DeCroce - Morris Plains

Corzine Proposal Morris Plains
Enrollment = 838
Adequate Budget = $10,894,790
State Aid = $985,690
Adequate Budget per student = $13,001
State Aid per student = $1,176
Funds per student required from Property Taxes and/or Federal Aid: $11,825

Republican Proposal Morris Plains
Adequate Budget = $10,894,790
State Aid = $1,000,186 (reflects 3.5 % increase, a total of $14,496 more than Corzine’s plan)
Adequate Budget per student = $13,001
State Aid per student = $1,194 (reflects $18 more per student than Corzine’s plan)
Funds per student required from Property Taxes and/or Federal Aid: $11,807

Tom Kean – Westfield

Corzine Proposal Westfield
Enrollment = 6,205
Adequate Budget = $77,743,063
State Aid = $5,051,068
Adequate Budget per student = $12,529.
State Aid per student = $814
Funds per student required from Property Taxes and/or Federal Aid: $11,715

Republican Proposal Westfield
Adequate Budget = $77,743,063
State Aid = $5,125,348 (reflects 3.5 % increase, a total of $74,280 more than Corzine’s plan)
Adequate Budget per student = $12.529
State Aid per student = $826 (reflects $12 more per student than Corzine’s plan)
Funds per student required from Property Taxes and/or Federal Aid: $11,703

Governor Corzine’s new school spending plan is based on the assumption that education recourses should be tied to a student’s relative economic status as well as the school district’s that he or she attends. His proposal establishes adequate spending for a thorough and efficient education at 47 percent more for an “economically disadvantaged student” and depending upon the school district attended, an extra 10 percent more.

Here’s the spending schedule the governor has proposed for next year:

Corzine’s plan uses economic status as a proxy for students “at-risk” as opposed to achievement test results which specifically identifies those students who truly are “at-risk”.

Under the governor’s plan, adequate spending remains unchanged for a student testing below grade-level if he or she is from a so-called “economically advantaged” family. However, a student from a low-income family is automatically considered “at-risk”, requiring 47 to 57 percent in additional spending, even if he or she has proven to be proficient or advanced through testing.

Clearly, the governor’s auto-pilot plan is not the best way to determine school spending needs and allocate scarce resources. It’s not geared to student achievement or school accountability and it’s certainly not equitable.

Corzine’s proposal is an expansion of the failed Abbott school distinct model. A spending model he told the New Jersey Supreme Court had no correlation to student achievement.

“Abbott districts have been spending at some of the highest levels in the State, and well beyond non-Abbott districts, with no discernable correlation to improved achievement.”

As Department of Education Commissioner Lucille Davy said:

“We need to figure out why we are not getting the outcomes. It's clearly not a matter of resources."

Despite years of evidence that this spending model does not produce results, the Corzine administration proposes more of the same and calls it the “New Formula for Success".

The plan should be rejected by citizens and lawmakers - it’s a formula for more spending and higher taxes. It has no correlation to a plan for public school education success.

The Star-Ledger wrote in an editorial, School funding plan shows promise:

Whether a child goes to school in Perth Amboy or Mountain Lakes makes no difference.

The premise is that money should follow the child. It's hard to argue with that.

It just doesn’t happen to be true. State aid does not “follow the child” under Governor Jon Corzine’s proposed plan. Spending and state aid are totally dependent upon where the child goes to school.

Under Corzine’s proposal, the Perth Amboy school district will receive $11,098 in equalized state aid for one child. If that same child attends school in Mountain Lakes, the district would receive $0 in equalized state aid.

Perth Amboy would no longer receive $11,098 in aid for the child, but the district would no longer bear the cost of educating that student. Mountain Lakes, on the other hand, would have to spend money to educate the child, but would receive no state aid for the student. Cost followed the child, not state aid.

There are two reasons for this. Under Corzine’s plan, both adequate spending per student and “local fair share” vary based upon school district.

Equalized state aid is the difference between adequate spending minus “local fair share”.

Equalized state aid = Adequate district Budget - Local Fair Share

Aid per student is very dependent on “local fair share” and can range from 0 to nearly100 percent of adequate spending per student.

Two districts can have identical adequate school budgets, but very different “local fair share” contributions. The greater a district’s “local fair share”, the lower state aid will be.

“Local fair share” is based upon the value of real estate within a school district and the income of its residents. So there is little likelihood two districts will have identical “local fair share” contributions based on the proposed formula.

Local Fair Share = (District’s Equalized Property Valuation x 0.0092690802 X .0.50) + (Districts Aggregate Income x 0.04546684 x .0.50)

Clearly, state aid can not follow a student because it will be different in each school district a child might attend. That’s excluding, of course, 184 school districts where equalized state aid for the student will be the same, $0.

In this post we’ll review one of the basic components of Governor Jon Corzine’s proposed state aid formula for New Jersey’s public schools – the “local fair share” formula. We’ll also explain why it’s unfair and should be rejected by our lawmakers in Trenton..

The proposed aid formula begins by calculating each school district’s adequate budget and “local fair share” contribution.

A district’s adequate budget is established by the State through a formula based upon student enrollment and demographics. It is the amount the State deems adequate to provide a thorough and efficient education to the district’s students

“Local fair share” is the total amount of property taxes the State deems a district should contribute towards its adequate school budget.

The difference between a school district’s adequate budget and its “local fair share” is the amount a district would receive in “equalized state aid”.

Equalized state aid = Adequate district Budget - Local Fair Share

Corzine’s proposed school spending and state aid plan is grossly unfair and should be rejected by state legislators. Here’s one more reason why.

Each district’s “local fair share” is calculated as follows:

(District’s Equalized Property Valuation x 0.0092690802 X .0.50) + (Districts Aggregate Income x 0.04546684 x .0.50)

A district’s equalized property valuation is the total value of the real estate property in the district as certified by the state’s Director of the Division of Taxation. A district’s aggregate income is the total income as reported by taxpayers on New Jersey State Income Tax forms.

The “local fair share” formula is heavily weighted to income and is especially advantageous to those districts with many property owners not living in the school district and therefore, not reporting income attributable to the district. One major example, nonresidential property used for business.

Keep in mind, “local fair share” is just the combined “fair share” of every property owner in a school district. Here’s an example of the formula’s gross inequity.

Two districts, District #1 and District #2, have the same state-established adequate school budget and the same total equalized property value.

In District #1, property owner A’s real estate is valued at $500,000 and he has an income of $100,000. His property is in District #1 and because he lives in the district, his $100,000 income is included in the formula.

Property Owner A’s Fair Share:
($500,000 x 0.0092690802 X .0.50) + ($100,000 x 0.04546684 x 0.50) =
$2,317.27 + $4,546.68 =
Fair Share = $6,863.95

In District #2, property owner B’s real estate is also valued at $500,000 and he has an income of $300,000. His property is in District #2, but because he lives outside the district, his income is zero in the formula.

Property Owner B’s Fair Share
($500,000 x 0.0092690802 X .0.50) + ($0 x 0.04546684 x 0.50) =
$2,317.27 + $0 =
Fair Share = $2,317.27

Property owner A’s “local fair share” reduces District # 1’s equalized state aid by $6,863.95. Property owner B’s “local fair share” reduces District # 2’s aid by only $2,317.27.

Clearly, Corzine’s “fair share” formula is terribly unfair to districts with a high percentage of property owner A types and few type B’s. Of course, Corzine would probably say “that’s not a bug in the formula, it’s a feature”.

Remember, every dime in state school aid comes from the state's income tax. That’s another element of “fare share” that’s missing.

Governor Jon Corzine’s adequate school spending and state aid plan is built on several key assumptions. If any of these assumptions are incorrect the entire Formula for Success should be scrapped . Many key assumptions are seriously flawed and Corzine’s proposal should be rejected.

Taking first things first. The most basic plan assumption is the base per pupil amount of $9,649. This is the adequate cost per student upon which the Governor’s entire school spending and state aid plan is calculated. If this number is unrealistic, and it is, than the entire plan is impractical. Here’s why

The State engaged “professional judgment panels” to determine the resources needed to provide a thorough and efficient education for New Jersey’s public school students. The panels came up with costs based upon school type - elementary, middle and high school – and district size – very small, small, moderate, large and very large. The panels determined larger school districts should have greater economies of scale and therefore, lower costs than smaller districts.

However, Corzine’s proposal uses only the large K-12 district cost model to determine the base per pupil amount. The plan then assumes the adequate spending for an elementary school student is equal to the base cost; the cost for a middle school student is 4 percent more than the base cost and for a high school student, 17 percent more than base cost.

The panels established that a large school district is one with an enrollment between 4,000 and 8,000 students. The State then established an adequate cost of $9,649 for an elementary school student, $10.035 for a middle school student and $11,289 for a high school student in large school districts.

Of the 615 school districts in the state, only 73 have enrollments between 4,000 and 8,000 students and 29 districts have more than 8,000 students. Four counties have not a single “large school district” - Cape May, Hunterdon, Salem and Warren. Clearly, the large school distinct cost model is not representative of the state’s school systems and yet, this is the model upon which Corzine’s proposal is entirely based.

Worse yet, there is not a single large or very large school district in the state currently spending at or below the per student costs established by the plan. There are only four large or very large districts currently with an average cost per student below the proposed high school student cost.

As shown by the chart below, the average cost per student is $14,204 for the 102 districts with enrollments of 4,000 and above - $2,915 more per student than the plan establishes for just high school students. Removing the 22 large or very large Abbott districts, with an average per student cost of $16, 521, reduces the average cost to $13, 081 per student - still well above the cost established in the plan just for high school.

Obviously, the large school district cost model isn’t even representative of the state’s large school districts upon which Corzine’s entire plan is based. The plan should be rejected for this reason alone – it’s not based on reality. The plan’s other key assumptions are even more seriously flawed as we shall prove in future posts.

New Jersey Cost Per Student
2007-2008 School Year
Large and Very Large School Districts

Click To Enlarge

The following is the proposed “simplified” formula for calculating adequate spending for New Jersey’s public schools. (We will refer to this information in subsequent posts)

Adequate Regular Education Student Cost

The cost per regular education student (RESC) is calculated as follows

RESC = base per pupil amount x grade weight

The base per pupil amount (BPA) is established by the New Jersey Department of Education and for the 2008-2009 school year will be $9,649. The BPA will be will be adjusted by the consumer price index (CPI) annually through the 2012-2013 school year.

The grade weight (GW) is established by the New Jersey Department of Education and will be:

Half-day kindergarten = 0.50
Full-day kindergarten = 1.0
Elementary (grades 1 through 5) = 1.0
Middle school (grades 6 through 8) = 1.04
High school (grades 9 through 12) = 1.17

Adequate School District Base Cost

The base cost (BC) for each school district is calculated as follows:

BC = (base per pupil amount) x (weighted enrollment for school district)

The weighted enrollment (WENR) for each school district is calculated as follows:

WENR = (0.5 x half-day kindergarten enrollment) + (1.0 x full-day kindergarten enrollment) + (1.0 x elementary enrollment) + (1.04 x middle school enrollment) + (1.17 x high school enrollment)

Adequate School District Budget

The adequacy budget (AB) for each school district is calculated as follows:

AB = (Base cost for school distinct + Low-income student cost + Bilingual student cost + Combination low-income bilingual student cost + Special education student cost) x Geographic cost adjustment.

Low-income Student Cost

Low-income student cost (ARC) is calculated as follows:

ARC = base per pupil amount of $9,649 x weighted enrollment of low-income students in the school district x low-income student weight

The low-income student weighted enrollment (ARWENR) for each school district is calculated as follows:

ARWENR = (0.5 x low-income half-day kindergarten enrollment) + (1.0 x low-income full-day kindergarten enrollment) + (1.0 x low-income elementary enrollment) + (1.04 x low-income middle school enrollment) + (1.17 x low-income high school enrollment)

The low-income student weight (ARW) is calculated as follows:

AWR = .047, if low-income students are less than 20% of district enrollment

AWR = ((low-income % - 0.20) x 0.25)) + 0.47, if low-income students are 20% or greater, but less than 60% of district enrollment

AWR = 0.57, if low-income students are 60% of district enrollment or greater

Bilingual Student Cost

The bilingual student cost (LEPC) is calculated as follows:

LEPC = base per pupil amount of $9,649 x weighted enrollment of bilingual students x bilingual student weight

The bilingual student weighted enrollment (LWENR) for each school district is calculated as follows:

LWENR = (0.5 x bilingual half-day kindergarten enrollment) + (1.0 x bilingual full-day kindergarten enrollment) + (1.0 x bilingual elementary enrollment) + (1.04 x bilingual middle school enrollment) + (1.17 x bilingual high school enrollment)

The bilingual student weight (LEP) weight is 0.5.

Low-income Bilingual Student Cost

The combination low-income, bilingual student cost (COMBC) is calculated as follows:

COMBC = base per pupil amount of $9,649 x weighted enrollment of combination low-income, bilingual student students x (low-income student weight + the combination low-income, bilingual student weight)

The weighted enrollment of combination low-income, bilingual students (CWENR) for each school district is calculated as follows:

CWENR = (0.5 x combination low-income bilingual half-day kindergarten enrollment) + (1.0 x combination low-income bilingual full-day kindergarten enrollment) + (1.0 x combination low-income bilingual elementary enrollment) + (1.04 x combination low-income bilingual middle school enrollment) + (1.17 x combination low-income bilingual high school enrollment)

The combination low-income bilingual student weight (COMB) is 0.125.

Special Education Student Cost

The special education student cost (SEC) is calculated as follows:

SEC = (district enrollment (RE) x the State average classification rate for special education students (SEACR) x excess cost for special education students (AEC) x 2/3) + (district enrollment (RE) x the State average classification rate for speech-only special education students(SACR) x excess cost for speech-only special education students (AECSO).

SEACR = The State average classification rate for special education students is established by the New Jersey Department of Education and will be 14.69 percent for all school districts..

AEC = the excess cost for special education students is established by the New Jersey Department of Education and will be $10,898 for all school districts.

SACR = the State average classification rate for speech-only special education students is established by the New Jersey Department of Education and will be 1.89 percent for all school districts.

AEC = the excess cost for special education students is established by the New Jersey Department of Education and will be $10,898 for all school districts.

AECSO = the excess cost for speech-only special education students is established by the New Jersey Department of Education and will be $1,082 for all school districts.

Geographic Cost Adjustment

The geographic cost adjustment (GCA) is developed by the New Jersey Department of Education and will be:

Atlantic County = 0.9452
Bergen County = 1.0312
Burlington County = 0.9613
Camden County = 0.9463
Cape May County = 0.8762
Cumberland County = 0.8818
Essex County = 1.0432
Gloucester County = 0.9189
Hudson County = 1.0393
Hunterdon County = 1.0156
Mercer County = 1.0087
Middlesex County = 1.0180
Monmouth County = 1.0170
Morris County = 1.0633
Ocean County = 0.9424
Passaic County = 0.9987
Salem County = 0.9189
Somerset County = 1.0608
Sussex County = 0.8966
Union County = 1.0298
Warren County = 0.9467

We keep waiting for sensible lawmakers to expose Governor Jon Corzine’s proposed school spending and state aid plan for what it is - absurd and unfair. How else would an objective person describe a plan that proposes greater state aid per student for some districts than it proposes for others to spend per student?

For example, Corzine’s plan has established that Glen Rock in Bergen County should spend $12,489 per student. Yet, the same plan also proposes state aid of $18,755 per student for Pemberton Township in Burlington County. Both districts serve students K-12.

The Governor’s plan cranks out an average of $12,482 in state aid per student for all of Cumberland County, just $7 less than the state expects Glen Rock to spend per student.

Pork-laden and inequitable is how a fair-minded person would describe a plan that allocates $23,004 in state aid per student to Asbury Park and $866 to Glen Rock.

And don’t think Glen Rock is the only school district getting a raw deal – it’s one of hundreds. Look up you own distinct here.

How can Corzine keep a straight face and call this plan A Formula for Success for All Communities? Clearly, it’s a formula that will expand the failed Abbott school district model to more schools. It’s a formula for more government spending, higher taxes – state and property – and no accountability.

We keep waiting for someone with clout to demand Corzine release the total per student each school district will spend from all funding sources. (That would include the $1 billion in federal school aid the state will receive and distribute.) Common sense would dictate all funding sources be incorporated into the state’s school funding plan. Taxpayers have a right to know all the facts and the bottom line, but it’s not happening.

Democrats in Trenton are busy drafting legislation to enact Corzine’s plan, even before all the facts are known and the public has had a chance to understand it. The goal is to have this boondoggle passed into law before January 8. Obviously, Corzine is hoping to ram this though while few citizens are paying attention and before the new legislature is sworn in next year.

What are Republican and other sensible lawmakers doing to expose and stop this nonsense before it’s too late? What are you doing? We fear the answer is nothing.

Let’s cut through the hype about Governor Jon Corzine’s school spending and aid proposal for 2008 and look at a few facts.

Newark, with an enrollment of 44,173 students, will receive $109.8 million more in aid than Bergen, Hunterdon, Morris, and Somerset Counties combined, with an enrollment of 293,875 students.

Union City, with a student population of 9,759, will receive $25.6 million more in state aid than all of Somerset County with an enrollment of 54,798.

Despite the cries of Abbott school district advocates, Newark is slated to receive $310 in additional state aid per student next year and Union City $2,070 more per pupil. Bergen, Hunterdon, Morris, and Somerset Counties combined will receive an aid increase of $261 per student.

In eight years, Bergen, Hunterdon, Morris, and Somerset Counties' combined aid increase will be $546 per student, while Newark’s aid will have increased by $7,169 and Union City by $6,426 per student.

Assuming the Governor’s new school spending and aid plan is approved, state aid per student will be $1,867 for Bergen County, $2,266 for Hunterdon County, $2,139 for Morris County and $2,253 for Somerset County. State aid will be $15,793 per student for Newark and $15,267 for Union City.

The Governor’s aid figures do not include $18,586 per student the Abbott school districts will receive separately for pre-school. Last year, Abbott pre-school enrollment was 41,000.

The following chart compares the four New Jersey counties with the two Abbott school districts to show what’s happened with state aid since 2000. The state’s Abbott school districts achieved per student spending parity with the wealthiest school districts in 1997 and by 2000 the 31 school districts were spending more per student.

New Jersey State School Aid
2000 - 2008

Click to Enlarge

This second chart shows the proposed increase in state aid under Corzine’s proposal for the same four counties and two urban school districts.

New Jersey State School Aid
Proposed Increases 2008

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As Governor Jon Corzine looks to extended full-day pre-kindergarten beyond the 31 Abbott school districts, one big question comes to mind. How much is it going to cost?

The answer is about $18,586 for each three-to four-year old enrolled. According to a December 2007 report, The Cost of High-Quality Pre-School Education In New Jersey, it cost state taxpayers $723 million for 38,900 Abbott district pre-schoolers during the 2006-2007 school-year.

Funding for Abbott pre-school comes from two agencies: the Department of Education (DOE) and the Department of Human Services (DHS).

The DOE’s estimate of its total expenditures in 2006–07 is $501 million with DHS spending an additional $222 million.

The report warns current state funding may not be sufficient because “compensation for pre-school teachers may need to be increased”:

First, the program requires a specific credential and must include professional development. Second, Abbott pre-school teachers in private settings receive less generous benefits than teachers in the public schools. Third, preschool teachers have less experience than the average teacher because the program is new; as these teachers gain experience the salary structure is such that their pay will increase. Finally, as the program expands, higher wages must be offered to attract more workers.

The report’s conclusion:

Our cost analysis shows that current spending is somewhat—but not grossly—below what is needed.

Not counting the cost of constructing new schools or classrooms to accommodate tens of thousands of additional students.

The above calculations assume no additional facilities costs.

We’re talking quality, affordable – no, no that’s what they say about healthcare.

The Union City school distinct will receive a huge $20.2 million increase in state aid under Governor Jon Corzine’s proposed school spending and aid plan. State aid for the district’s k-12 students will grow by 16 percent, to $15,485 per pupil, next year.

The additional aid cranked out by Corzine’s new formula amounts to a $2,070 increase per student for Union City - whether or not the district actually needs the extra money. As recently as 2006, the district was proud of the fact that additional state aid was unnecessary. Union City was spending far less per student than many Abbott districts and was identified by the state as a school district of excellence.

Last year, Union City was touted as a successful Abbott school district during meetings of the Joint Legislative Committee on Public School Funding Reform. Union City’s superintendent of schools, Stanley Sanger gave a presentation about his school distinct which included the following 4 key points:

1. School district's demographics – 87 percent of students are eligible for a free or reduced price lunch and 97 percent of students come from homes where the dominant language in the home is not English.

2. Student achievement - In Grades 3, 4, 8, and 11, the distinct met or exceeded the State objectives in all areas, except one, special education (achievement for disabled students)

3. Additional Funding Requirements – The district has never found it necessary to apply for additional supplemental funding through Abbott aid.

4. Holding Down Costs - In the last several years, the distinct was able to reduce non-salaried costs, between 5 and 10 percent each year.

Now Union City can go a spending spree with an extra $20.2 million dollars from state taxpayers. If lawmakers suspected patronage hiring in Union City schools was a problem last year, just wait until next year.

And just imagine what’s going on in districts that will receive state aid at the rate of $17,000, $18,000, $19,000, all the way up to $23,000, per student. Who knows what total spending per student will be when all sources of funding– federal, state and local – are added up.

To place those aid levels in perspective, keep in mind that adequate per student spending for what the state now calls “regular education students” is $9,649 for elementary school, $10,035 for middle school and $11,289 for high school. That’s adequate spending per student, not adequate state aid per pupil.

You can forget about property tax relief if Corzine’s "New Formula for Wasteful Spending" is enacted. The Governor is looking to greatly expand a failed program that has already produced the highest property taxes in the nation and nearly bankrupted the state’s treasury.

At last. The Republican Party is beginning to respond to Corzine’s proposed school spending program.

We also hope Republicans have plans to expose the false premises on which Governor Jon Corzine has based his adequate school spending and state aid proposals.

There’s a difference between property tax relief and fueling increased spending.

Facts About Corzine's School Funding Proposal

The proposal increases state spending by $532 million which state taxpayers will have to pick up - when our State budget is already so strained. It is a 7.3% increase in the $7.8 billion portion of the State budget dedicated to school aid. The increase will trigger higher State taxes or encourage the toll road gimmick.

Four Democrat machine counties (Hudson, Camden, Essex, and Middlesex) are getting larger increases than any other county in the entire State. These four counties receive increases of $210 million - almost half half the total funding increase.

Union City, with less than 70,000 residents, will get a $20 million increase in funding next year when there has been considerable evidence put forth in the last year about patronage and wasteful spending there. By way of reference, the $20 million increase in aid for Union City and its people is more than the combined increases for all of the 91 school districts and the nearly 1 million people in legislative districts 10 (Ocean), 11 (Monmouth), 39 (Bergen) and 40 (Bergen).

Even in some Republican areas where there appear to be spotty increases, such as district 12 in Monmouth County, the funding formula is still grossly unfair. Total school aid in for the 19 school districts in legislative district 12 will be $155 million - this compares to roughly the same amount ($149 million) just for Union City alone.

Places like Jersey City which exempt lots of property from paying anything at all in property taxes towards schools through sweetheart giveaways to builders, will receive an increase of $8 million - bringing their total aid to $419 million. They will be permitted to continue giving away sweetheart deals which exempt wealthy property owners from making payments to their own schools.

Corzine has established the adequate spending per student necessary to provide a thorough and efficient education in New Jersey - $9,649 for elementary school, $10,035 for middle school and $11,289 for high school. But to Corzine not all students are created equal.

The Governor has decided that students living in districts with certain demographics are entitled to spending that’s far above what he considers adequate for the middleclass. He has proposed a plan to make state taxpayers fund his vision at the expense of property relief.

Under the Governor’s new formula, students living in lower income districts are automatically considered to be “at-risk”, and so require 47 to 57 percent more spending per student.

Students living in areas with a high percentage of immigrants are automatically considered to be of limited English language proficiency (LEP) and therefore require a 50 percent boost in per student spending

Corzine has also determined that public school students living in lower income districts with a high percentage of immigrants should spend 60 to 70 percent more than the amount deemed adequate for educating a child from an average family.

The obvious question to these spending proposals is why? Why must we spend more to educate a student on the basis of demographics? How many teachers can stand in front of a classroom and teach at one time? And why must taxpayers forgo property tax relief to fund this obvious pork barrel program?

The 30 year Abbott school experiment has proven that more spending didn’t equal thorough and it certainly didn’t efficient. It did equal huge increases in government spending and sky-high state income and local school property taxes. Why should lawmakers permit and taxpayer put up with the expiation of a failed program?

Back in 1990, the left and its legal advocates wanted “a uniform per-pupil spending level” in New Jersey with “95 percent of all educational spending [to] fall within the equalized per-pupil rate and local districts could spend only 5 percent more per child”. Now the cry is to spend 50 to 70 percent more.

Taxpayers will never be able to meet the ever increasing demands of the Education Law Center and the “more money for education” crowd. They’ve had their way with us for decades, it’s long past time that we taxpayers put our foot down.

Governor Jon Corzine released his long awaited school spending and state aid plan yesterday. It contains all of the elements we have been warning our readers about for more than a year.

It was clear back then that Corzine’s plan would expand the Abbott school district spending and funding formulas to more districts. That’s exactly what the Governor’s “New Formula for Success" proposes.

Corzine is pushing ahead despite, as we pointed out in early May, 2006, that his administration admitted the Abbott model has been a failure. To the New Jersey Supreme Court his administration unequivocally stated:

“Abbott districts have been spending at some of the highest levels in the State, and well beyond non-Abbott districts, with no discernable correlation to improved achievement.”

Department of Education Commissioner Lucille Davy said:

“I'm concerned that we're spending $18,000 a kid in Asbury Park, for example, and their results are near the bottom in almost any measure. We need to figure out why we are not getting the outcomes.. It's clearly not a matter of resources."

Davy said that just over eighteen months ago and yet, yesterday, Corzine proposed increasing state aid to Asbury Park to $23,004 per student. Is there any logic, accountability or fiscal responsibility in that decision? And $23,004 is just the direct state aid figure and doesn’t include additional funding that will be spent by Asbury Park from local and federal sources, plus other state aid funding programs.

Governor Corzine has chosen to replicate a failed program that has produced the highest property taxes in the nation and has nearly bankrupted the state’s treasury.

The Governor has not proposed a “property tax relief” program, but a plan designed to increase government spending and to ensure property tax increases. He should be stopped!

Governor Jon Corzine’s new school spending plan has been released - A New Formula for Success. The chart below summarizes the adequate spending per student used by the state to calculate each school district’s adequate spending budget and categorical state aid.

Categorical state aid and other information for each school district may be found at the following links.

K-12 State Aid Summary, Budget Amounts and Demographic Data
K-12 State School Aid Detail
Explanatory Notes for Aid Allocations

Next year state income tax revenue will increase by $886 million, bringing the total “property tax relief fund” for public school aid to $12.5 billion. The information released today provides information on the allocation of only 62 percent of state school aid, $7.8 billion. It does not include $4.7 billion in school aid that will be allocated to districts for “regular preschool”, payroll taxes, pension contributions and debt service. It also doesn’t include the allocation of $918.3 million in federal aid.

Currently, the average spending per student for New Jersey is $16,000. Next year the average will rise to $18,000 and will be funded through $12 billion in local school property taxes, $12.5 billion in state income taxes (Property tax relief fund) and $918.3 million in federal aid to the state’s public schools.

Summary of Adequacy Budget Amounts

Adequate Spending per Student

Click to Enlarge

Democrats are still planning to approve Governor Jon Corzine’s new school aid formula before the last day of the lame-duck legislative session, January 7.

We believe the proposed school funding formula is built on a series of false premises - more money must be spent per student in districts with lower median incomes, called “at-risk”, and in districts with a high percentage of immigrants.

Once lawmakers in Trenton buy into these spending principles, the property tax relief debate is over and taxpayers will have lost.

“Abbott districts have been spending at some of the highest levels in the State, and well beyond non-Abbott districts, with no discernable correlation to improved achievement.”

That quote comes from a Corzine administration brief before the New Jersey Supreme Court. The verdict on the thirty-year experiment is in. More spending didn't equal thorough and it certainly didn't equal efficient. It did equal sky high state income and property taxes. That’s the reality and yet, Governor Corzine is proposing to expand that same failed spending model, albeit under a new name.

When most people think of equal opportunity and adequate school spending they imagine equal spending per student in all districts, with some additional resources allocated for disabled children. That’s not what this new scheme proposes - it layers additional spending on top of additional spending based upon demographics.

The following is an overview of the four basic steps used to develop the proposed new school aid formula. For those in a hurry, check out the charts shown below taken from the New Jersey Department of Education

The Basic Steps

One, determine adequate per student spending to deliver a “thorough and efficient education”.

The state assigned “professional judgment panels” (PJP) using the “costing-out” method to determine the resources necessary to meet the state’s educational standards.

The panels established a base cost per student depending upon district type, K-8 or K-12, and by size of district enrollment – very small, small, moderate, large and very large.

The established base spending amounts reflect economies of scale and are considered adequate for the majority of the state's school districts.

Two, determine any additional spending requirements above adequate base spending and establish weight factors for increasing spending per student.

The panels identified three categories for additional spending – disabled students and two based on district demographics – income and percentage of immigrant population.

The panels developed a series of weight factors to be applied to the base amounts for each category.

Income –“At-Risk”: The panels decided students living in districts with lower per capita median incomes, relative to the state’s average, were “at-risk” and therefore, required additional resources. The panels determined spending per student should increase based upon the "at-risk" intensity of a district.

Spending over the base for “at-risk” districts will range from a low of 42 percent to a high 66 percent per student.

Immigrant Population – EEL: The panels decided English Language Learners (EEL) required additional spending and used the percentage of immigrants living in a district as a proxy for determining districts in need of this additional spending.

Spending over the base for EEL districts will range from a low of 38 percent to a high of 85 percent. This amount would be on top of any “at-risk” factor applied.

Special Education: The panels established levels of special education needs and a series of weight factors for each – speech, moderate, severe, preschool disabled and extended school year.

Spending over base for special education will range from a low of 55 percent to a high of 725 percent.

Three, establish adequate spending per student for each district using the appropriate weight factors and calculate adequate total spending for each district

The state determines each district’s eligibility for increasing base spending for each factor – “at-risk”, ELL and special ed. The product of each weight factor is then added to the appropriate base to arrive at adequate spending per student for each school district.
District enrollment is multiplied by the adequate spending per student amount to determine a district’s adequate spending total.

Four, calculate state aid. State aid is based upon the extent each district can afford to fund the adequate per student spending established by the state for that district. The formula for calculating ability to pay is based on a district’s relative per capita property wealth and income, as measured against the state’s medians.

The state then calculates the total spending each district can afford and subtracts that amount from the total spending deemed adequate for the district. The difference between the two totals equals the amount of state aid the distinct should receive under the formula.

The Charts

Charts below from the New Jersey Department of Education’s website – Planning for a New School Funding Formula. Click on each chart to enlarge.

My, how the New Jersey Education Law Center has changed its tune over the years. The ELC is the group responsible for the various lawsuits resulting in the so-called Abbott decisions handed down by the state’s Supreme Court.

Back in 1990, the group said there should be uniform spending per student across the state with little, if any leeway for local districts to spend more. The group’s plan back then was for an equalized per-pupil rate with local districts allowed to spend only 5 percent more per child. The New York Times had the story - New Jersey Schools: Rich, Poor, Unequal:

Marilyn J. Morheuser, head of the Education Law Center and its chief lawyer in the current court fight, says a uniform per-pupil spending level could require a handful of high-spending suburban districts to reduce programs or staff to get within a proscribed level.

Under her plan, 95 percent of all educational spending would fall within the equalized per-pupil rate and local districts could spend only 5 percent more per child.

"If there is any local leeway, it would be very narrow," Ms. Morheuser said.

Back in 1990, the ELC’s example of an overspending school district was Millburn, at $6,247 per student. The state’s average was $5,200 and a poor Abbott school district was spending only $4,867 per child.

By 2005, the state’s average cost per student was $13,800 and the Education Law Center was still complaining and suing for more funding for Abbott school districts. Millburn was spending $13,977 per student and the Abbott schools districts of Newark, Asbury Park and Hoboken were spending $22,829, $23,572 and $22,221 respectively. That’s 63 percent, 69 percent and 59 percent more per student than Millburn.

What happened to the ELC plan calling for uniform per-pupil spending with a 5 percent leeway?

"This is not about hurting someone; it's not a zero-sum game," Governor Jon Corzine said during a speech in New Brunswick about his new, secret school aid funding formula.

Definition of zero-sum game: “A situation in which participant gains result only from another’s equivalent losses. The net change in total wealth among participants is zero; the wealth is just shifted from one to another.”

Of course that’s exactly how New Jersey’s collection and allocation of state aid for education works. The state’s education “property tax relief fund” is precisely equal to the revenue collected in state income taxes and that money is distributed by the state, creating winners and losers.

New Jersey’s public schools are paid for with revenue from local property taxes, the state’s income tax (property tax relief fund) and federal taxes (federal funding). While residents (game participants) pay unequal amounts into these funding sources, you might expect the state to distribute aid to produce roughly equivalent spending per student in each district. But, that’s not the way it has worked in New Jersey. It’s long been a zero-sum game that adds insult to injury.
The U.S. Census and The New York Times have the final results of the New Jersey game for 2005. The average spending per student was $13,800, but the districts receiving the most aid, spent the most per student by wide margins.

In 2005, the Newark school district spent an average of $22,829 per student, Asbury Park $23,572 and Hoboken $22,221. Those three represent the so-called poor Abbott school districts. Wealthy Millburn, the town with the highest average property taxes in the state, spent $13,977 per student. Middleclass North Plainfield, with its homeowners paying the state’s average residential property tax, spent $12,617 per student.

Corzine has described the outrageous spending by the Abbott School districts as having "no rational basis of explanation". His administration has also told the New Jersey Supreme Court:

“Abbott districts have been spending at some of the highest levels in the State, and well beyond non-Abbott districts, with no discernable correlation to improved achievement.”

The new funding formula is supposed to change all that and provide real property tax relief.

Next year, Corzine expects New Jersey’s state income tax revenue to increase by $886 million, bringing the total “property tax relief fund” for public school aid for 2008 to $12.5 billion. The federal government will kick in $918.3 million on top of the $12 billion that will be collected by municipalities in school property taxes. That’s a total of $25.4 billion to educate 1,387,963 public school students, an average of $18,012 per pupil. The total pot should be more than enough to provide a “thorough and efficient” education to every child in the state and still have enough left over to provide major property tax relief to those who pay the bulk of the state’s income and property taxes.

So, that leaves us with three big questions. Will Corzine’s new school funding formula produce lower property tax bills or will it fuel new spending? Will state aid be allocated to produce roughly equivalent spending per student or will a new irrational explanation be used to justify spending more on those favored? Will 45 percent of the state’s districts still be considered “too wealthy” for basic state aid?

New Jersey Taxpayer Hell Story #1,835,412

Central Regional is a 7-12 school district located in central New Jersey serving the municipalities of Berkeley Township, Island Heights, Ocean Gate, Seaside Heights and Seaside Park. Total student population is about 2,400.

This is how property tax relief through school consolidation has worked out for those communities:

When Central Regional was created, the towns agreed that it would be funded on pupil enrollment, or per-pupil funding. But when the Legislature revised the school-funding laws in 1975 requiring the conversion of all regional district tax levies to be apportioned based on the equalized value of real estate, it evolved to the point where Seaside Park was paying $51,500 per pupil during the 2005-2006 school year while the other towns in the district paid an average of $10,000 or less per pupil.

This is exactly why Democrats are pushing for the consolidation of schools into 21 county school districts. Their plan offers no actual savings, but would ratchet-up property taxes for some and produce “property tax relief” for others. The county plan would consolidate the political power of the purse into the hands of 21 Governor appointed county school superintendents. The first step was taken with the introduction of two bills in the state’s legislature - A-4 and S-10.

The state’s income tax was created in 1975 to provide “property tax relief” through state aid to school districts. You can see how well school consolidation and the state’s income tax have worked out for the people of Seaside Park, Seaside Heights and Island Heights - communities that voted overwhelmingly to break from Central Regional. These taxpayers are trapped.

The state forced Seaside Park taxpayers to bear a disproportionate portion of the burden to educate the students of the district. One count claims that by virtue of the number of Berkeley's registered voters — 30,975 — Berkeley has "absolute power to block the attempts of any of the other constituent districts seeking withdrawal from, or dissolution of, Central Regional, as well as the power to block any attempt to change the apportionment method."

As a last resort, the people of Seaside Park are asking a Superior Court judge “to compel state Education Commissioner Lucille E. Davy to dissolve the Central Regional School District, permit Seaside Park to withdraw from it or change the district's funding formula”.

"It's unfortunate that they are pursuing it after it was voted down," said Central Regional School District Superintendent David Trethaway.

“The people have spoken – make the other guy pay!” Tyranny of the majority in action. Seaside Park property taxpayers are shelling out $51,500 per student while another town in the same school distinct pays only $5,500 per pupil. Care to guess which one? We’ll give you a hint.

Berkeley Mayor Jason J. Varano said, “I feel they're just wasting the school administration's time and money when they are supposed to be concentrating on providing our students with the best education possible."

Spending someone else’s money - isn’t it great!

We wish the taxpayers luck with their lawsuit, but history has shown New Jersey’s courts to have a decidedly anti-taxpayer bias. The only way out of this taxpayer hell is to move.