New Jersey School Funding Executive and Legislative Proposals and Abbott Lawsuit

SFRA: NJ’s Current School Funding Formula 2008 Legislature passes and Governor signs School Funding Reform Act (SFRA) SFRA is a “weighted” student formula – provides additional funding for students living in poverty and Limited English Proficient students Accepted by Supreme Court – Abbott remedies lifted

SFRA continued SFRA calculates the amount needed for districts to provide a thorough and efficient education – called “adequacy” amount Based on student population, poor and LEP student get more resources regardless of where they live Total adequacy amount includes Local Fair Share (local contribution) and State Aid Districts with low property wealth receive significantly more state aid

SFRA continued In 2008, when SFRA adopted, districts are in very different places in terms of funding – some above, some below adequacy SFRA designed to bring all districts to adequacy over a five year period

SFRA Goal: Move All Districts to Adequacy Amount Districts Over Adequacy 2008-2012 SFRA Adequacy Districts Under Adequacy

SFRA Under Governor Christie 2010 cut $1 billion of State Aid from SFRA 2011 – present; State Aid levels and categories frozen More districts fall below adequacy because costs and student populations rise Some districts remain above and some remain below adequacy because SFRA was never fully implemented 2016 Governor introduces Fairness Formula

Governor’s Fairness Formula Pool all current state aid under SFRA (state aid, special education, preschool, etc.) Distribute on equal per pupil basis to all students across state, without regard to community wealth, student need, etc. $9 Billion = $6599 per pupil

“Fairness Plan” Impact Total of143 districts would have their budgets cut 78 low wealth districts would lose, on average, $7,417 per pupil, representing 40% of their total operating budgets. 56 middle wealth districts would be cut an average of $1,494 per pupil, or 8% of their operating budgets.

Impact continued Budget cuts would result in massive cuts in staff, cuts that could reach upwards of 15,000 teachers and support staff All 129 high wealth districts would receive a huge increase as state aid is transferred from the poorer districts to be used for property tax relief

Bottom Line Substantial reduction in budget, staff and programming in high need districts Likely to end Abbott preschool and expansion Reinstates pre-1990’s funding disparities between high and low need districts

Governor’s Abbott Filing Motion to Supreme Court asking to: Vacate Abbott XX ordering implementation of SFRA Freeze funding for former Abbott districts at current levels until “new system” enacted Give Commissioner authority to override collective bargaining and teacher tenure rules in former Abbott districts Court asked for preliminary briefs about whether the motion should be heard

Sweeney/Ruiz SFRA Proposal SCR119 Full funding of SFRA with phase-in over 5 years Commission to study: Adjustment aid Local fair share, local levy, and tax abatements Special education census funding Commission report due February 1, 2017 “Up or down” vote in Legislature

Prieto/Caride Proposal – ACR2 Establishes Joint Legislative Committee on Public School Funding Reform and working group Commission to: Review provisions of SFRA Formulate proposals to address funding issues, including changes in demographic and fiscal conditions of districts Consider phase-in of full SFRA funding Propose legislation

Prospects for Funding Proposals Pros and Cons of Proposals Legislative Gridlock Governor’s proposal included in the FY17 State Budget?

Getting Ready for 2016-17 Preparing school budgets as usual? Prepping staff and parent leaders for possible implementation of funding proposals Keeping in touch with professional association and advocates