Property Tax Reform, Special Legislative Session & School Funding

8-23-06 Jt Comm on Pub. School Funding Reform met yesterday
News articles on the meeting foresee caps on spending, especially in wealthier districts...performance not integral part of the discussion. e.g., Gannett: '...Since court orders have linked state funding of the state's poorest districts to how much is spent in the richest, Sen. John Adler, D-Cherry Hill, said one way to curb property taxes is to limit what is spent in the most affluent communities. "One of the things we have to look at seriously is slowing the growth of spending so we can slow the growth of taxes,.." ...'

Published: August 22, 2006

Lawmakers juggle funding options

By GREGORY J. VOLPE
Gannett State Bureau

TRENTON

Lawmakers investigating ways to ease the burden education places on local property taxes are looking to cap the amount wealthy districts spend in hopes of slowing down rising property tax rates that are the highest in the nation.

Since court orders have linked state funding of the state's poorest districts to how much is spent in the richest, Sen. John Adler, D-Cherry Hill, said one way to curb property taxes is to limit what is spent in the most affluent communities.

"One of the things we have to look at seriously is slowing the growth of spending so we can slow the growth of taxes," said Adler, who is co-chairman of the Joint Legislative Committee on School Funding Reform.

Assemblyman David Wolfe, R-Brick, said it's an idea worth considering, but remained fixated on testimony by a national education finance expert, Michael Griffith, who said via Internet link that the 58 percent of the state's education dollars sent to the 31 so-called Abbott districts could swell to 70 percent in five to seven years and 90 percent in 30 years.

"If we don't do something in five years, 70 percent is going to go to the Abbott districts," Wolfe said. "We got to do something. We got our work cut out for us."

Reach Gregory J. Volpe at gvolpeat gannett.com

Panel eyes Maryland for school financing
Wednesday, August 23, 2006
ASSOCIATED PRESS

TRENTON -- As New Jersey moves to cut property taxes, it should look to how Maryland funds schools, two experts told a special legislative committee considering how to redo New Jersey public school funding.

Molly A. Hunter of Columbia University and Michael Griffith, an education finance expert for the National Conference of State Legislatures, on Tuesday both cited Maryland as an example of a state that seemingly has found a way to balance educational needs and financial resources.

Maryland has 24 county school districts and funds schools through state financial aid, property taxes and county income taxes. All districts receive an equal baseline amount per student, with additional money available for poorer districts.

"Maryland's system is not perfect, but it looks very good," Griffith said.

New Jersey has 616 school districts and provides heavy state funding to 31 poor, urban districts. New Jersey school districts can raise money only through property taxes. As a result, the Garden State has the nation's highest -- about $6,000 per homeowner.

Maryland schools

Districts: 24

Funding: State aid, property taxes, county income taxes.

Distribution: Districts get an equal baseline amount per student; additional funds available for poorer districts.

New Jersey schools

Districts: 616

Funding: Property taxes, state aid.

Distribution: About $10 billion of the state's annual $30 billion in spending goes to schools. The Abbott districts, 31 mostly poor, urban districts, receive additional state funds. The districts account for 22 percent of the state's public school students, but receive 55 percent of state school aid.

The school funding committee is among four formed by the Legislature to recommend ways to cut property taxes, which have increased about 7 percent per year in recent years. Their proposals are due by Nov. 15.

Governor Corzine wants to cut property tax growth by 20 percent by 2010.

Columbia's Hunter also cited Vermont, which created a statewide school property tax, and Kentucky, where education aid is calculated on a per-pupil basis.

About 55 percent of the property tax money collected annually in New Jersey goes toward schools, and about $10 billion of the $30 billion spent every year by the state goes to school operations.

A state Supreme Court ruling -- stemming from concerns that children in poor city schools don't receive the same quality of education as those in wealthy suburban schools -- requires the state to provide heavy funding for 31 districts designated as needing special help.

Those districts have about 22 percent of the state's student population, but they get about 55 percent of all state school aid.

Meanwhile, the state hasn't increased financial aid to most other schools for five years.

Hunter said school funding disputes in the United States date back as far as 1819 in Massachusetts. She said lawsuits challenging school funding methods have been filed in 45 of 50 states.

"It's a widespread phenomenon," Hunter said.

But Hunter said New Jersey's case is unusual in that it led to funding help for 31 districts. She said most states that lose court cases revise funding for all their schools.

Griffith said New Jersey is the only state that ties funding for poor school districts to spending by its wealthiest districts.

Sen. John Adler, the committee co-chairman, said after the hearing that slowing school spending, especially in the most expensive districts, may prove key.

"I won't support drastic cuts in spending for the poorest districts, but limits should be considered for our wealthiest districts," said Adler, D-Camden.

The other committees will study government consolidation and shared services, public worker benefits and constitutional issues. The public worker panel is scheduled to meet today.