Funding--Testimony--Assembly Budget Committee--Schiff--3-20-19

One District's State Aid Impact: Hillsborough's Story Hillsborough is set to lose $5.3 million over the next six years.

State Aid for Hillsborough: A Historical Perspective



Local Fair Share

Over/(Under) Aided









% Increase/( decrease)





During a period of six years, enrollments remained constant. In FY13 Hillsborough schools were underfunded by over $13 million. In six years, Hillborough is now over funded by $5.6 million. During this period of time while enrollments remained virtually unchanged, the Local Fair Share increased by 36%.

Although we taxed at cap and utilized the healthcare waiver over the past several years, SFRA finds us to be over-aided.


Tools for the "Toolbox"

  1. Remove the 2% cap for any district losing aid
  2. If #1 is not doable, then allow for additional waivers for:
    1. Special Education
      1. Cost increases beyond 2%
      2. Cost not covered adequately by the state
        1. Eligible extraordinary aid not covered by the state
        2. Special education students above 14.92%,both formulaic and categorical adjustments
    2. Healthcare costs above 2% for private carriers, not just SEHBP
    3. Other insurance costs above 2%
      1. Greater flexibility with reserve accounts for districts losing aid
      2. The wealth calculation
        1. Multipliers are heavily weighted toward district income, rather than balanced between income and property. Hillsborough's income increased from 2012-13 to 2018-19 by 33%. Our property value increased by 7.47%, yet our local fair share increased by 36.74%.  The law clearly states that the wealth calculation will be weighted equally between property and income, but it clearly is not.
        2. There is no verification of the income data
      3. Hold implementation of S-2 until a comprehensive impact study is released and adjustments are made to address unintended consequences.


Jorden Schiff, Ed.D., Superintendent of Schools

Hillsborough Township 379 South Branch Road Hillsborough, NJ 08844

(908) 431-6600 x2002