School Funding in New Jersey

1
School Funding in New Jersey

• Presented by
• Edwin Carman
• NJSBA Senior Lobbyist

2
School Funding in 2006

• CEIFA, the Comprehensive Educational
  Improvement and Funding Act of 1996
• a minimum foundation grant program
• parity aid for Abbott districts
• categorical aid programs
• eight (8) separate hold-harmless aid
  provisions
• three (3) programs for aid to low- income
  children

3
How CEIFA Should Work

• STATEWIDE core curriculum standards aid, the
  Consumer Price Index (CPI) and statewide
  enrollment growth
• DISTRICT-LEVEL core curriculum standards aid
  determined by the TE budget the local share
• ADJUSTMENTS
• Supplemental Core Curriculum Standards Aid
• Additional Supplemental Core Curriculum
  Standards Aid
• Abbott v. Burke Parity Remedy Aid

4
Other CEIFA Aid Categories

• TRANSPORTATION
• SPECIAL EDUCATION
• DEMONSTRABLY EFFECTIVE PROGRAM AID
• INSTRUCTIONAL SUPPLEMENT AID
• BILINGUAL EDUCATION
• EARLY CHILDHOOD EDUCATION
• ADULT POST-SECONDARY EDUCATION AID
• COUNTY VOCATIONAL PROGRAM AID
• HOLD HARMLESS AID
• STABILIZATION AID
• SUPPLEMENTAL STABILIZATION AID
• STABILIZATION AID 2
• SUPPLEMENTAL SCHOOL TAX REDUCTION AID
• LARGE AND EFFICIENT DISTRICT AID
• OTHER HOLD HARMLESS AID PROGRAMS
• TEACHER RETIRMENT AND BENEFITS
• TECHNOLOGY
• CAPITAL OUTLAY AND DEBT SERVICE

5
Why CEIFA No Longer Works
The State Government stopped funding the CEIFA
formula in 2001-2002. NJ state contribution
toward education lt 40 Remainder of costs
made up in property tax gt 60
6
NJSBA Policy on School Funding
NJSBA believes that New Jerseys system of
financing public schools should enable all local
school districts to provide an equal educational
opportunity for all children in New Jersey to
receive a thorough and efficient
education. NJSBA believes that the State should
pay at least 50 percent of the statewide total
cost of providing a thorough and efficient
education for all public elementary and secondary
students. NJSBA believes the source of funding
for reducing the property tax should be the
income tax, the most progressive tax available.
7
NJSBA Working For You

• Property Taxes in New Jersey Striking a Balance
  an NJSBA-produced video presentation on the
  need for tax reform.
• NJSBA is part of a coalition of education
  stakeholder groups developing recommendations for
  a new funding formula.

8
How You Can Help

• Ask Your Legislators 3 Questions
• Will you support the creation of a School Funding
  Commission, comprised of a broad group of
  stakeholders to recommend a funding formula to
  the Legislature and Governor?
• Will you support a Special Session -- rather than
  a Citizens Convention -- to reform property
  taxes?
• Will you support a dollar-for-dollar shift from
  the local property tax to the income tax to
  balance school taxes?

9
Talking Points

• A new funding formula is necessary because CEIFA
  has been rendered non-operational after not
  running it for five (5) years.
• A School Funding Commission will ensure that a
  new formula is adequate, equitable, flexible and
  certain.
• The Legislature can accomplish property tax
  reform in less time than it would take a
  Citizens Convention, and with far better
  outcomes.

10
Talking Points

• To relieve the property tax burden, the state
  must increase its share of education funding to
  at least 50 through a dollar-for-dollar shift
  from the property tax to the state income tax.
• The state income tax is equitable and
  progressive it is based on ones ability to pay.

11

Keepin it real

Use local examples Despite little or no
increase in state aid, enrollment/utilities/specia
l education costs/health insurance costs in my
district has increased by _______ since
2001. The families in my district want to
support the schools, but have voted down our
budget ________ times because of the property tax
burden.
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Follow-up

• Dont let the momentum stop after today!
• Let NJSBA Lobbyists know what your legislators
  said or promised, so they can follow-up too.
• Educate your board on what you learned today
  and involve your fellow board members in your
  efforts.
• If you promised your legislators additional
  information to support your discussions, be
  sure and send it as soon as possible.
• Send a thank you note to your legislators,
  summarizing your discussions today.