|5-11-15 Education and Related Issues in the News|
Star Ledger - N.J. unions, Christie administration clash over pensions before Supreme Court
TRENTON — New Jersey's public worker unions and Gov. Chris Christie's administration fought over billions of dollars in pension funding before the state Supreme Court on Wednesday in a case with far-reaching implications for hundreds of thousands of workers and state budgets this year and beyond.
More than a dozen labor unions are asking the high court to establish their right to pension funding under a 2011 pension reform law that lawyers for the state argue is unconstitutional.
Justice Barry Albin called the dispute unprecedented, saying the state's position is that "the law that was passed, now that it doesn't seem to work to my advantage, I'd like to declare it unconstitutional."
In arguments that lasted more than three hours, the justices peppered lawyers with questions on whether the law created a contractual right for public workers — and how that should be balanced against the state's other spending priorities.
Justice Anne Patterson worried that the issue could put the court in the thorny position of having to get involved in the state budget every year. She seemed to cringe at the idea of the courts having to weigh competing funding priorities such as education and Medicaid to make room for pensions payments.
"We would in essence be stepping on the proverbial toes of the Legislature," Patterson said.
Confronted with mounting unfunded liabilities, Christie and the state Legislature pushed through a series of reforms in 2011 that suspended cost-of-living adjustments, raised the retirement age, increased workers' contributions into the fund and required the state to ramp up to the full payment recommended by actuaries.
The state paid up for two years but slashed payments last year when revenues slowed. The unions argue Christie broke the law by withholding $1.57 billion in pension payments from the current budget. A lower court judge agreed.
"The state accepted the labor of the employees ... and now all they want is their wages," said said Robert Klausner, who represents pension funds' boards of trustees.
But Jean Reilly, an assistant attorney general, told the court that unions' claims to pension funding not only "subverts the constitution, but also has several disastrous practical consequences."
The promise under the 2011 law conflicts with a constitutional clause barring the state from taking on new debt without the voters' approval and another barring the state from telling future Legislatures how to spend its money, Reilly said.
Steven Weissman, a lawyer for the state branches of Communications Workers of America and the AFL-CIO, argued that "Every single year (the state doesn't) pay it, the state, not (the law), the state of New Jersey, creates an obligation that has to be paid in the future."
While they've asked the court to force the state to restore the $1.57 billion cut, some union leaders are increasingly skeptical the court will order the state to scrape it together before the end of the fiscal year in June.
But a ruling that the workers have a constitutionally protected contractual right to pension funding has implications far beyond this year as the state would face big pension bills every year.
Kenneth Nowak, an attorney for the New Jersey Education Association, said that even so, it wouldn't be up to the court to dictate where to cut and when to tax.
"If the political branches of the government cannot get their constitutional act in harmony, then it's up to the court to tell them how to do that," Klausner said.
The justices were skeptical of the administration's contention that striking down the part of the law mandating the state's payments wouldn't send the rest of the reforms tumbling down.
Ablin, for example, asked: "if you're doing that, is that some sort of bait and switch?"
Reilly disagreed, noting the Legislature is empowered to unilaterally increase workers' pension contributions.
"It may have been a political compromise, but there's nothing in the statute that makes one beholden to the other," she said.
Star Ledger - Beating Newark's odds, KIPP charter network is poised to expand | Opinion
It is an unlikely place to see so many children celebrating college acceptance letters.
Before returning to AP statistics, he pointed to the year 2015, emblazoned across his chest. He got this T-shirt from KIPP back in 8th grade, in anticipation of the year he would graduate.
"We're making it happen," he said, with a grin.
KIPP aims to do the same in Camden. In the poorest city and one of the worst districts in the nation, it opened its doors to its first class of kindergarteners this year, in a temporary trailer.
Bryan Morton's daughter Isabella got one of the last available slots. Within 6 months, he went from wondering whether she had a learning disability to seeing her test at nearly a first grade level.
"Mine is not an individual experience," he said. "There are kids outpacing Bella. One kid took the math assessment and ranked in the 98th percentile. Only two percent of other kindergarteners in the country are doing better than him."
"We're very happy with KIPP, beyond happy," he added. "My little five-year-old can read."
So how does KIPP do it?
A big part is extra teachers and time on task. KIPP has two instructors in every classroom, and while it no longer has extended hours each day, it does have a longer school year and some half-day Saturdays. Another important factor is KIPP's ability to maximize money spent in the classroom.
No state has tried harder than New Jersey to help poor kids get a good education, thanks to a series of rulings by the state Supreme Court that lifted spending in places like Newark to equal or exceed spending in most of the richest suburbs.
Yet the results have been frustrating. The achievement gap closed slightly, and in districts that made the best use of the money, like Union City, kids were matching nearby suburbs on test scores.
You see the pitfalls, however, in a district like Camden. The state spent a whopping $27,500 per pupil there last year — almost double what is spent across the river in Philadelphia. Yet only 49 percent of Camden kids graduate. Just three of the 882 who took the SAT in a recent year tested "college ready."
The charter movement has proven beyond doubt that this is not all about money. These schools get less public money than conventional ones to operate, and nothing at all for buildings.
Still, KIPP and a few other charter organizations, like North Star Academies, have shown that urban kids can make the grade. With freedom from the union rules and wasteful central bureaucracies of district schools, they are doing more with less.
To understand how charters benefit from less regulation, consider the infamous story about the air conditioners at George Washington Carver, one of the lowest-performing schools in the district, which shared a building with a KIPP charter school, Spark.
When Spark ordered units for its classrooms, it caused some resentment downstairs, so KIPP's board chipped in to buy them for Carver, too. Yet while KIPP paid $400 apiece to buy and install its own units, it had to pay more than $700 for the district's, not including installation, and they took an entire year to put in.
Why? Because the district has to solicit proposals, get bids, then follow all the rules set by the installer and electricians' unions. It loses time and money. The same applies to hiring a guidance counselor. KIPP can get around onerous state requirements by hiring alums and putting them through life coach training. But the district has to hire a certified counselor with a set salary.
That inflexibility is a widespread problem. At KIPP, teachers can come in on weekends to tutor kids, but they often aren't allowed to in the district. While the district has to pay for underutilized buildings, KIPP just rents the space it actually uses. And even though the district gets more per-student funding, it still spends far more of it on central offices, a giant money sinkhole.
Spark gets $17,000 per student from the state, and a typical district elementary school gets at least $18,000. Not a huge difference. But of that amount, Spark has significantly more money under the direct control of its principal, for teachers and other classroom costs: $14,000, as compared to the district's $8,000.
The extra $6,000 helps pay for KIPP's extra resources, like two teachers in a classroom, while the central district is paying for an overfed bureaucracy.
"These are problems that all urban districts have," says Ryan Hill, who founded the KIPP schools in Newark. "We are able to do what we can for our kids, without the chains of inertia or policy."
- Their elementary and high schools equal or outperform the average for the state of New Jersey, even though the students are much poorer.
- They close the achievement gap and surpass national averages in reading and math by 8th grade.
Garden State Coalition of Schools