1. New Jersey School Funding
Executive and Legislative Proposals and Abbott Lawsuit

2. 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

3. 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

4. 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

5. SFRA Goal: Move All Districts to Adequacy Amount
Districts Over Adequacy
SFRA Adequacy
Districts Under Adequacy

6. 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

7. 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

8. “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.

9. 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

10. 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

11. 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

12. 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

13. 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

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

15. 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