Quality Public Education for All New Jersey Students

 

 
     Property Tax Reform, Special Legislative Session & School Funding
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Costs at merged schools similar Data: Savings would be little

editorial excerpt – …The state's health plan must be overhauled in order to trim costs and provide more flexibility.

Voters to Decide $329.5 million in School Construction Projects on Tuesday

School bus costs bleed Parsippany District faces additional $900,000 gap

Bridgewater officials urge investment in education

Costs at merged schools similar

Data: Savings would be little

Posted by the Asbury Park Press on 09/25/06

BY JONATHAN TAMARI
GANNETT STATE BUREAU

TRENTON — Maryland's model for public schools, held up by some Garden State lawmakers as a cheaper alternative to New Jersey's fragmented system, may not offer the kind of savings originally thought, two sets of federal statistics suggest.

The figures, from the federal Department of Education and the U.S. Census Bureau, show that New Jersey and Maryland devote similar percentages of their education budgets to administrative costs. In terms of pure dollars, New Jersey still spends more on administration, but it also spends more in every other area of education. In total, New Jersey spends more per student than any other state, according to the department.

The statistics challenge earlier evidence that seemed to indicate that Maryland's county-based school system could show the way to savings in New Jersey, where there are more than 600 local school districts. New Jersey School Boards Association spokesman Frank Belluscio said those assertions were based on flawed comparisons.

"Citizens need to know various options, but it really has to be accurate data. Unfortunately, in public discourse sometimes things get misinterpreted, and I think that's what happened," Belluscio said.

School funding is one of the key areas of focus for lawmakers seeking ways to rein in New Jersey property taxes. School bills make up the largest portion of property tax levies.

Belluscio said figures from the federal Department of Education show that a county-based school system doesn't necessarily save money. A July 2006 report from the federal department's National Center of Education Statistics shows New Jersey devoted 9.9 percent of its public school spending to administrative costs in the 2003-2004 school year. In Maryland that figure was a similar 9.2 percent. The national average was 11 percent.

"The best source for comparison is the federal Department of Education. They remove all the variables, and they have a consistent interpretation and a consistent definition," Belluscio said.

Census Bureau figures for the 2003-2004 school year, while different from the ones kept by the federal department, paint a similar picture: the data show New Jersey and Maryland dedicate similar portions of their budgets to administration, and both are close to the national average.

State Sen. Robert G. Smith, D-Middlesex, an advocate for county-based schools, said there was confusion at an earlier hearing he chaired that appeared to show that Maryland spent a far smaller portion of its school money on overhead than New Jersey.

Despite the mix-up, Smith said a revised comparison shows Maryland's central administrative costs — the costs for superintendents — are smaller than New Jersey's. He said the comparison illustrates the potential savings of using county districts.

"Instead of having 618 bureaucracies manage the entire system you would have 21 (county-based) bureaucracies, and that's where the savings come from," said Smith, co-chairman of a legislative panel examining government consolidation.

The superintendent expenses comprise a portion of overall administrative costs.

Because it spends more than Maryland on education in total, New Jersey's administrative costs are also higher in terms of dollars, according to both sets of federal statistics.

The federal DOE figures show New Jersey spends $1,319 per pupil on administrative costs. Those expenses are $454 more than Maryland's and $405 more than the national average.

New Jersey spends $13,338 per student overall. Maryland spends $9,433, according to the federal DOE. The national average is $8,310.

Belluscio said it is unlikely that combining school districts would save money. Smith plans to bring in private companies to analyze the efficiency of combining school districts and municipalities.

The Census Bureau's analysis of administrative spending reflects the different school systems, however. Maryland spends a larger percentage on principals' offices than New Jersey; New Jersey spends a larger percentage on executives, such as superintendents.

Jonathan Tamari:

jtamari@gannett.com

 

 

How we can tame tax hikes and pay for education
Thursday, September 21, 2006





States all over the country are searching for new ways to distribute the support they provide for public schools. This is designed to meet two objectives:

1) to ensure that education funding is linked to and consistent with education accountability, a component of standards-based reform.

2) to provide property tax relief since, among all taxes, property taxes are probably the most disliked by taxpayers.

Standards-based reform is the decade-old approach states are using to improve schools. Under the approach, the state role has changed from providing specific education programs and services to setting education standards, measuring how well students are doing, and holding school districts accountable for student performance (the federal No Child Left Behind Act uses this same approach but allows each state to define its own performance goals).

Some states are now trying to estimate the costs that school districts face in meeting standards rather than simply allowing available revenues to be the primary factor in determining state aid.

Property tax relief has been a goal of many states ever since the passage of Proposition 13 in California almost 30 years ago. Since that time, most states have implemented procedures designed to limit taxes either directly, by controlling tax rates, rate increases or changes in property assessment, or indirectly by limiting school spending.

New Jersey is now examining the way it supports public schools. Unlike most other states, New Jersey has dealt continually with school finance litigation stemming from a state Supreme Court decision in 1973 (the original suit, Robinson v. Cahill, was a class action that resulted in the court closing schools before the Legislature passed a state income tax to pay for a new funding system).

A later suit, Abbott v. Burke, only affected a specific group of high need, "Abbott" school districts. As a result of this litigation, the state now uses what amounts to two different approaches to fund schools – one for the Abbott school districts (which represent 5 percent of all districts in the state) and one for all other districts.

A single approach

Since New Jersey has also embraced standards-based reform, it is time to do two things. First, recognize the costs that districts face in meeting state student performance expectations. And second, use a uniform system to make state aid sensitive to the demographic characteristics of each and every school district. While all districts differ in terms of their education needs, there is no reason why a single approach could not be used to effectively measure those needs.

At the same time that the state is building a uniform way of appraising need and linking school finance and school accountability, it should address existing inequities associated with property taxes.

While New Jersey's property taxes are certainly high, the state does not rely to an unusual extent on property taxes to support schools -- in New Jersey, about 52 percent of all revenue for school districts comes from local sources, most of which is derived from property taxes – the national average was 43.6 percent in 2003-04. Nine states, including Connecticut, Massachusetts, Maryland, Pennsylvania and Virginia, had higher proportions than New Jersey).

In modifying the state aid system, it is important to keep in mind the following:

·  New Jersey has a disproportionate number of school districts (641 of the nation's 16,066 districts in 2004-05).

·  Many of the districts do not serve all grades (that is, kindergarten through Grade 12).

·  Districts differ in enrollment and cost of living.

·  There are significant differences in both wealth (based on either property valuation or personal income) and in the needs of districts (particularly in relation to the proportion of children coming from low-income families).

While no other state's school finance system can serve as a complete model for New Jersey (every state deals with idiosyncrasies in terms of education governance, taxation, and history), there are a few that exemplify the kinds of steps that New Jersey could take to improve its school finance system.

Maryland and Idaho examples

In 2002 Maryland reorganized its school funding procedures based on the recommendations of the governor-appointed Thornton Commission.

The new system specifies a base cost designed to reflect the cost of services needed for every student to become academically proficient. It also adjusts the base cost for students with special needs.

In fact, Maryland collapsed numerous programs created to provide services for students from low-income families into a single "weight" that reflects the cost of serving students with special needs relative to students with no special needs.

The use of such a weighted funding system allows districts – not the state – to decide how funds should be used to serve students. Districts are then held accountable for student performance.

The system has been successfully implemented over several years – and "Thornton" funds are viewed as untouchable in the state budget process.

Another state that New Jersey might look to for ideas is Idaho. This year, Idaho eliminated property taxes to support public schools and replaced them with an increase in the state sales tax. By doing so, Idaho joined several other states that have dramatically reduced reliance on property taxes (including Minnesota and Michigan) or have developed statewide property taxes to replace a portion of what had been local property taxes.

This can address some of the inequities of local property taxes that previously produced widely varying tax rates across school districts. It is not, however, a perfect solution, and can raise a variety of questions such as whether sales taxes are more "fair" than property taxes in terms of their impact on families of different income levels.

Circuit breakers

There are also other tools, such as "circuit breakers" and homestead exemptions, which some states have developed to reduce the impact of property taxes on low-income families.

Under a circuit breaker, such as the one used in Vermont, property taxes are limited to a proportion of a family's income, with the state making up any shortfall to the school district. Under a homestead exemption, homeowners are allowed to exempt a portion of the value of their home from property taxation if it is their principal residence.

As it decides how to change its school funding system, New Jersey can, and should, learn from other state experiences. In the process, the state will have the chance to improve both the adequacy and equity of its current system.

Any change will create political issues and is likely to require judicial review. But other states have shown that the job can be done if there is legislative and public will to do so.

John Augenblick is president of Augenblick, Palaich and Associates, Inc., a Denver-based consulting firm that works with states to evaluate and develop their school finance systems.

 

Herald News editorial 9-22-06, excerpt –

…The state's health plan must be overhauled in order to trim costs and provide more flexibility. In many cases, public employees should contribute more toward their health insurance costs, in keeping with what workers in the private sector pay. The State Health Benefits Commission took a step in that direction earlier this month when they voted to raise the co-pays for some 200,000 municipal employees, teachers and retirees for prescriptions and doctor visits. The move is expected to save taxpayers an estimated $32 million a year…

 

NJ School Boards Assoc: NEWS RELEASE

Voters to Decide $329.5 million in School Construction Projects on Tuesday

TRENTON, September 22, 2006--Voters in 17 school districts will decide school-construction proposal totaling $329.5 million on Tuesday, according to the New Jersey School Boards Association.

Under the Educational Facilities Construction and Financing Act of 2000, school districts have been receiving state funding through up-front grants, which dried up last year, or annual installments of state debt service aid to help pay for a portion of the costs. The state funding, in either form, equals a minimum of 40% of state-determined eligible costs per project.

Approvals on Upswing In 2005, voters approved 58.9% of the 89 school building proposals on the ballot, authorizing a total of $1.083 billion in construction spending. The results reflect a drop from the 2004 voter approval rate of 67.6%. The decrease was due largely to a high rate of rejections in the September and December bond elections when the state grants to underwrite part of school construction costs came to a halt.

In the three elections that have taken place so far in 2006 (January, March and April), 20 school districts proposed construction projects. Voters approved 70% of the plans, authorizing a total of more than $125 million in construction spending.

Debt Service Aid In Tuesday’s election, four of the 17 proposals had received earlier state authorization for up-front grants while that program was still in operation. The grants, if they become available again, would reduce the size of the bond issues needed to fund the construction projects in these districts. If the state grant program is not replenished by the time the four districts secure their construction financing, they would bond the full amount of the approved projects and receive their state funding through annual debt service aid.

Proposed projects in 12 other school districts would also qualify for state funding through debt service aid. For the 2006-2007 state budget, Governor Corzine recommended sufficient funding to cover the authorized amounts of debt service aid.

A 2001 state law limits school bond elections to five dates within a school year: the fourth Tuesday in January; the second Tuesday in March; the third Tuesday in April (also the date of the annual school board and budget elections), the last Tuesday in September or the second Tuesday in December. The next bond election date will be December 12.

Construction proposals on the September 26 ballot follow.

New Jersey School Construction Referendums
Tuesday, September 26, 2006

STATEWIDE
Total project cost: $329,541,279

BERGEN COUNTY
Leonia
Purchase property adjacent to high school campus and early childhood center for school facilities project identified in district’s long-range plan
Total project cost - $699,000

CAMDEN COUNTY
Black Horse Pike Regional
Renovations, and/or additions to three high schools
Total project cost - $61,170,344

Gloucester Township
Replacement of roofs at one elementary school and two middle schools
Total project cost - $7,806,645

ESSEX COUNTY
Millburn
Additions and renovations to high school and middle school
Total project cost - $21,302,000

GLOUCESTER COUNTY
Franklin Township

Renovations and additions to elementary school
Total project cost - $1,359,529

HUNTERDON COUNTY
Milford Borough
Renovations to elementary school
Total project cost - $3,175,000

Stockton Borough
Structural repairs at elementary school
Total project cost - $542,306

MONMOUTH COUNTY
Manasquan Borough
Improvements to the high school athletic fields and facilities, including land acquisition
Total project cost $4,980,000

Oceanport
Renovations of middle school and elementary school
Total project cost - $2,135,500

Shore Regional
Renovations and improvements to high school, athletic facilities and fields
Total project cost - $49,797,221

MORRIS COUNTY
Kinnelon
Addition and renovations to high school
Total project cost - $12,654,095

Pequannock Township
Proposal #1
Addition and renovation to high school, middle school and three elementary schools
Total project cost - $29,950,000

Proposal #2 (subject to approval of Proposal #1)
Additional renovations and/or further additions at high school and three elementary schools
Total project cost - $8,400,000

OCEAN COUNTY
Eagleswood Township

Renovations to elementary school
Total project cost – 1,666,369

Little Egg Harbor Township
Proposal #1
Construction of a new elementary school and renovations and improvements to an existing elementary school and a middle school
Total project cost - $23,406,937

Proposal #2 (subject to approval of Proposal #1)
Additional renovations and improvements at intermediate and elementary school
Total project cost - $12,162,886

Ocean Township
Renovations at two elementary schools
Total project cost - $8,100,503 (49.7% qualifies for state debt service aid)

SUSSEX COUNTY
Sparta Township

Proposal #1
Additions and renovations to high school
Total project cost - $71,513,519

Proposal #2 (subject to approval of Proposal #1) Installation of artificial turf, bleachers and press box at high school athletic fields Total project cost - $2,496,575

Vernon Township
Renovations to high school and two elementary schools
Total project cost - $6,222,850

********

The New Jersey School Boards Association, a federation of district boards of education, advocates the interests of school districts, trains local school board members, and provides resources for the advancement of public education.

School bus costs bleed Parsippany

District faces additional $900,000 gap

Tuesday, September 19, 2006

BY AL FRANK

Star-Ledger Staff

Parsippany public schools are facing some major belt tightening after a gaping $900,000 hole opened in the district's budget when busing costs jumped more than 18 percent.

The economizing would be on top of what the board of education already imposed after the township council ordered $500,000 cut when voters rejected the $113 million budget in April.

Included in that round was the elimination of transportation for 1,000 middle and high school stu dents who live closer to their schools than the distance the state sets for mandatory busing.

The step was supposed to have saved $225,000, but the sole bid instead came in $900,000 higher than the $4.9 million budgeted for busing this school year.

"It wiped out every savings we hoped for," said Marlene Wendo lowski, district business administrator. "Now, I have to find another $900,000."

"This was completely unexpected," board President Robert Perlett said. "I don't really know where the money is going to come from because we're already operat ing on a tight budget here."

He said the financial quandary lays to rest any possibility that some of the so-called "courtesy" routes might be restored.

Although parents of some 51 Brooklawn Middle School students from the Glacier Hills neighborhood have been the most vocal in complaining of the lost service, Perlett said fairness would have re quired any restoration to include all sixth- through eighth-graders who also live about 1.5 miles from the middle school. He said that would cost between $400,000 and $600,000.

"This is what we've been telling the parents from Glacier Hills," he said. "If the money was there, we would have had routes to begin with, or restore the routes. But the money is not there."

Even so, for next year, Perlett wants a committee to evaluate routes to school and come up with criteria on what determines a particular stretch is hazardous and in need of busing. Up to now, the district has made such judgments on a subjective basis, he said.

On Thursday, he plans to name an ad hoc transportation commit tee made up of parents and members of the board and township council.

Meanwhile, it will be up to the board's finance committee to deal with the $900,000 deficit. In the interim, word has gone out to the district's 14 schools to hold the line.

"Informally, administrators throughout the district have been told to hold back on spending and think in terms of where they could cut back," he said.

Some of the cost may be offset by state aid earmarked for transporting special education students and by canceling discretionary travel and conferences, which could save about $35,000. More sav ings might be produced by dialing down thermostats, Perlett said.

The board might also draw on some of its $2.4 million surplus, but auditors have already ruled it the minimum for the 7,100-student district.

"If we had to go into surplus, we would have to," Perlett said. "But that would be taking surplus down dangerously low, and if something else untoward came along, we wouldn't have the money for that."

The new routes were not finalized until after the middle of July and while the board had solicited quotes from eight companies, Kevah Konner of Fairfield was the only bidder for two rounds.

Although 15 routes were cut, Kevah Konner's quotes came in 40 to 114 percent higher, Wendolowski said.

"We asked how, for some of the routes to some of the same buildings, they could have an 80 percent increase and they said they had to make up for gas prices and lost profit" from the year before, she said.

The bargaining could not have come at a worse time.

As the district was seeking quotes, the price of oil hit $77 per barrel, sending gasoline and diesel fuel prices to their highest point all year, according to Energy Department data. As of yesterday, oil prices had declined by 18 percent.

Kevah Konner did not return calls for comment.

Al Frank covers Parsippany. He may be reached at afrank@starled ger.com or (973) 539-7910.

 

Bridgewater officials urge investment in education


By KARA L. RICHARDSON
Staff Writer

BRIDGEWATER -- Educators and advocates stood outside Bridgewater-Raritan Regional High School on Wednesday to ask the public and politicians to invest in education.

The news conference was called while the New Jersey Legislature is in special session to discuss property taxes.

"People tend to blame schools for property tax problems," said Steve Baker, a spokesman for the New Jersey Education Association, the statewide teachers union

Baker urged the lawmakers to change the formula by which schools are funded -- so school budgets aren't slashed as an attempt to calm the tax burden.

The news conference highlighted a New Jersey Citizen Action report which asks the public and lawmakers to support an educational system where all students may succeed. Mike Olender, a spokesman for the citizen watchdog coalition, said the report encourages universal early childhood care and education; access to afterschool programs; quality K-12 schooling which would prepare students for college; and affordable higher education.

The study was based on a New Jersey Citizen Action poll last summer, which found the majority of swing voters -- people who don't vote along party lines -- support rolling back tax cuts to the wealthy to finance investments in public education, Olender said.

Olender invited New Jersey Education Association Vice President Barbara Keshishian, Garden State Coalition of Schools Executive Director Lynne Strickland, Bridgewater-Raritan Education Association president and teacher Steven Beatty and Bridgewater-Raritan Regional High School student Megan Jones to speak at the press conference.

Bridgewater-Raritan Regional Superintendent Walter Mahler, Bridgewater-Raritan's Board Secretary Peter Starrs, the Somerville school district business administrator Brian Boyce and Somerset Hills' superintendent Peter Miller shared the space behind the podium.

Mahler said Bridgewater-Raritan Schools fare well on test scores but it struggles with budgeting.

"We passed our last two budgets -- after three failed," Mahler said. The district's board of education is considering asking voters for $16 million to expand the school and renovate the middle school.

"If we don't add the space, the students are still coming," Mahler said.

·  Kara L. Richardson can be reached at (908) 707-3186 or krichard@c-n.com.