·        Appropriations Act for State Budget FY06 Poised for a vote tomorrow…

·         More than 10 years ago, when the QEA school funding formula was shelved, the executive and legislative branches worked with the education community to develop an interim funding method that was known as the “Public Schools Reform Act”. The PSRA was intended to responsibly address the need for a predictable, stable source of school aid funding until a new formula was enacted.

·         The CEIFA school funding act was passed in December 1996 and implemented in the ’97-’98 school year.

·         Since 2001-2002 the legislature and executive branch have suspended the implementation of CEIFA. Those in power in Trenton have not pursued a responsible path to address this void. No interim funding method such as the PSRA has even been contemplated.

·         For the most part, Trenton’s political majority has provided band aid ‘aid’ approaches that are either district specific or court-ordered. Within the last week the legislature has moved on a $19.9M aid package for only 5 districts[S2558/Sacco-Doria http://www.njleg.state.nj.us/2004/Bills/S3000/2558_S1.HTM ]: Bayonne, Clifton, Hillside, North Bergen, Weehawken.

·         A few times – at least symbolically – Trenton neared a broader, mainstream aid approach such as a 3% aid increase for all districts in FY 04, or the full funding of special education extraordinary aid that helps our neediest students no matter where they live. To date, that broader approach has been disregarded.

·         During the last days of the Appropriations Act last year S1701 passed in 10 days.

·         The promise of devising a new school aid formula has been stated often recently. While GSCS, among many education organizations, has called for a new formula, we know that to do so will take a considerable amount of time...at least a few years. School and their communities need help today.

gscs/emailnet/6-29-05/p.2

BIG QUESTIONS LURK BEHIND DEMOCRATS' BUDGET BATTLE By David P. Rebovich [excerpts from ‘politicsnj.com’]

David P. Rebovich, Ph.D., is Managing Director of the Rider University Institute for New Jersey Politics (www.rider.edu/institute).  He also writes a regular column, "On Politics," for NEW JERSEY LAWYER

“…What do these budget negotiations tell us about the prospects for long term property tax relief and reform?  Well, it looks like New Jerseyans should not hold their breaths.  Neither the Democrats who control the Senate nor Codey have pushed for a property tax reform convention.  And now they apparently do not regard immediate property tax relief as the state's highest priority.  Under the circumstances, voters may ask themselves why the Democrats should continue to control state government if, even in a gubernatorial and assembly election year, the party cannot come together to pursue meaningful relief and reform…

     …July 1st New Jerseyans will wake up to a new state budget.  That's because the State Constitution says we must.  But anyone who spent time in or around the State House last week probably wondered just how a new spending plan could be finalized before the new fiscal year begins.  Legislators were seen shaking their heads in anger and confusion and overheard griping to reporters, asking lobbyists and advocates for patience and understanding, and complaining to each other about how there can be such serious differences, especially over property tax relief, between the Assembly, the Senate and the Governor's Office on the new budget when all three are controlled by Democrats. And in an election year, no less, when being on the same page is SOP for members of both the majority and minority parties….

…In fact, the biggest story of this budget season has not been the fiscal challenges facing the state but rather the disagreements among Assembly and Senate Democrats about what their priorities should be.  And those disagreements will likely lead to the passage of a budget that does not contain as much property tax relief as most New Jerseyans thought they would receive.  They thought so because the Democrats control the State House and have claimed that providing citizens with property tax relief is their top priority…

…What do these budget negotiations tell us about the prospects for long term property tax relief and reform?  Well, it looks like New Jerseyans should not hold their breaths.  Neither the Democrats who control the Senate nor Codey have pushed for a property tax reform convention.  And now they apparently do not regard immediate property tax relief as the state's highest priority.  Under the circumstances, voters may ask themselves why the Democrats should continue to control state government if, even in a gubernatorial and assembly election year, the party cannot come together to pursue meaningful relief and reform…

…But maybe citizens here are deluding themselves if they believe that property tax reform can be addressed without thinking seriously about the need for revenue stability.  Codey admitted as much, first by recommending other tax hikes in his budget proposal and then by having the Treasurer criticize Assembly Democrats for suggesting that some of those tax hikes be dropped because it is an election year.  The Administration contends that New Jersey needs the revenue. And not for just for property tax relief but for other desirable programs.  For New Jerseyans who think that this year's heated budget negotiations are basically about clashing egos and insider politics, think again.  There are important and unpleasant lessons to learn about the state's fiscal condition that will have to be considered if and when lawmakers do get around to discussing permanent property tax reform…”

gscs/emailnet 6-29-05/p.3

ADDENDA – FYI

Page3 resend/corrections: please replace this page with prior p.3 sent with original 6-29-05 EMAILNET.Numbers have been adjusted to properly reflect a level playing field by removing County Vocational school from the totals. In the case of Leg. Dist.18 a typo that exaggerated the number was also corrected. Apologies to Senator Buono, Assemblyman Barnes and Diegnan.

Per a report put together by the Department of Education earlier this year on the local cost of not providing updated state funding for CEIFA since FY02, many legislative districts have communities that have had to make up the impact of underfunding via raising local taxes; some examples are –

$58M District 6

 - Audubon Park Borough, Berlin Borough, Berlin Township, Cherry Hill Township, Chesilhurst Borough, Collingswood Borough, Gibbsboro Borough, Haddon Township, Haddonfield Borough, Oaklyn Borough, Pine Hill Borough, Pine Valley Borough, Tavistock Borough, Voorhees Township, Waterford Township, *Winslow Township [total excludes Camden County Voc & East Camden County Reg]

 * Winslow Twp = $37.4, w/o Winslow total is $20.6M

$6.3M District 18

-Metuchen Borough, South Plainfield Borough, South River Borough, Spotswood, East Brunswick Township, Edison Township, Helmetta Borough, [total excludes Middlesex Co Voc]

$11.3M District 22

 - Clark Township, Dunellen Borough, Fanwood Borough, Green Brook Township, Linden City, Middlesex Borough, North Plainfield Borough, Plainfield City, Rahway City, Scotch Plains Township, Winfield Township [total does not include Plainfield due to its Abbott status; Middlesex Co Voc, Somerset County Voc, Union Co Voc also excluded]

$8.4M District 27

 - Caldwell Township, Essex Fells Township, Fairfield Township, Livingston Township, Maplewood Township, Newark City (partial), North Caldwell Township, Orange Township, Roseland Borough, South Orange Village Township, West Caldwell Township, West Orange Township [total does not include Newark due to its Abbott status; excludes Essex Co Voc ]

$25.5M District 30 - Allentown Borough, Bordentown City, Bordentown Township, Chesterfield Township, Farmingdale Borough, Fieldsboro Borough, Howell Township, Jackson Township, Lakewood Township, New Hanover Township, North Hanover Township, Plumsted Township, Roosevelt Borough, Upper Freehold Township, Washington Township [excludes Burlington Co Voc, Mercer Co Voc; Monmouth Co Voc, Ocean Co Voc]