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Education budget passes first legislative test
Assembly committee considers $10.9M plan
Friday, March 30, 2007
BY JOHN MOONEY
Star-Ledger Staff
Gov. Jon Corzine's latest state budget for public education skated through its first legislative hearing yesterday with barely a scratch, but lawmakers were less kind about how the money is spent once it reaches districts.
The Assembly budget committee spent more than three hours with state Education Commissioner Lucille Davy, quizzing her on everything from the value of student testing to the preparation of thousands of New Jersey's high school graduates.
The state's alternative high school exit exam, the Special Review Assessment, took the harshest beating -- called by one legislator the "biggest sham in New Jersey."
It was a theme picked up later in the day when the same committee heard from higher education leaders and asked about their high costs in remedial education. The president of the County College of Morris said about 60 percent of his freshmen need some remediation.
"After we spend $20 billion on public education, that's the level they come to you?" said state Assemblyman Joseph Cryan (D-Union).
Needed by about 13,000 graduates last year, the SRA is slated to phased out in the next three years, officials said.
But for all the high emotions on this and a variety of other topics in the schools, the budget proposal before the committee was largely unscathed.
In his $10.9 billion spending plan for schools, Corzine has proposed the first meaningful aid increases to all districts in the last five years, guaranteeing a minimum of 3 percent hike to virtually all districts.
More than $100 million in additional aid for preschool and full-day kindergarten and for districts with high concentrations of poor children are bringing some districts double-digit increases.
"When everyone's getting more money, that takes the issue (of state aid) off the table," said Assemblyman Lou Greenwald (D-Camden), the committee's chairman.
Greenwald and other legislators did press Davy to finalize a school funding formula that would more equitably distribute the billions New Jersey will spend in direct school aid in future years, saying it is the only way to address high burden of local property taxes.
Corzine initially sought to have a new funding formula in place for this budget, but now hopes to have it ready for the 2008-09 budgets.
There were a few other budget issues raised as well. About two dozen people from the Freehold borough schools attended the hearing in yellow T-shirts emblazoned with "SOS: Save our Schools."
Under new legislation that limits tax levy increases to no more than 4 percent, the district is now facing deep cuts that could jeopardize athletics, after-school and other extracurricular programs.
But despite the urging of some legislators, Davy said there is little more the state can do for the district. "I don't have any additional aid to give them," she said.
Still, it wasn't the state money that drew the most heated comments from legislators, but how it is spent. And this from both Democrats and Republicans.
"We are spending billions of dollars," said state Assemblyman Gary Shaer (D-Passaic). "In some areas, we are seeing achievement, but in others it is just not working."
Straight across him on the Republican side of the dais, state Assemblyman Kevin O'Toole (R-Essex) said for all the increased monitoring on schools under Davy, there should be more.
It grew so critical at times that state Assemblyman William Payne (D-Essex) tried to balance the conversation, although to little avail.
"There are those that see it as half empty, but I see it as more than half-full," he said. "I really think we need to emphasize the positives."
A far more collegial atmosphere came an hour later when dozens of college presidents and administrators swept into the hearing room to discuss Corzine's spending plan for higher education.
Corzine has proposed a 2.3 percent increase for colleges and universities, providing some salve on the deep aid cuts made a year earlier. Several programs remain in peril, including a scholarship program for outstanding high school students to stay in state.
But legislators largely praised the colleges for their work, and Cryan even asked Rutgers President Richard McCormick to elaborate on all the academic achievements at his university.
SENATE DEOMCRATIC WEBSITE RELEASES: 1
1. KARCHER - FREEHOLDERS NEED TO STEP UP TO HELP FREEHOLD SCHOOLS
FREEHOLD TOWNSHIP - Senator Ellen Karcher today charged the Monmouth County Board of Chosen Freeholders with putting political contributors ahead of schoolchildren after the Freeholders denied her request for the county to provide payments in lieu of taxes (PILOTs) to the Freehold Borough School District to help eliminate cuts in this year's school budget.
"Assemblyman (Mike) Panter and I have written to the Board of Freeholders to request much needed assistance to the Freehold Borough schools," said Senator Karcher, D-Monmouth and Mercer. "The County owns a considerable amount of land in Freehold on which they don't pay taxes, and we think it's time they started paying their fair share."
In her letter to Freeholder Director William Barham, Senator Karcher points out that the school district is facing severe cuts this year, despite increased state aid. Without additional aid, the district will be forced to cut sports and extracurricular programs and dismiss 13 employees, including two librarians, an art teacher, a music teacher, two guidance counselors, a media assistant, three clerical assistants, two custodians, and a math supervisor.
Senator Karcher said that her request on behalf of Freehold Borough was denied because the county didn't have any surplus funds in their budget to give to the school district.
"The Freeholders are crying 'poverty' at the same time they are approving hundreds of thousands of dollars in cost overruns for the Hall of Records to be paid to politically connected contractors," added Senator Karcher. "It's time that Freeholder Director Barham reexamined his priorities."
Senator Karcher noted that Freehold Borough loses more than $500,000 each year in property taxes because county-owned land is tax exempt. She also noted that while the county has provided grants to the borough for items in the past, it has never compensated the school district for its loss.
As part of her effort to secure more funds for the district Senator Karcher joined with about 40 members of the Save Our Schools (SOS) group today at the Assembly Budget Committee hearing to show their support for a new school funding formula that would be fairer to districts like Freehold Borough.
"Freehold Borough is a model of fiscal responsibility, spending less per pupil than any other district in Monmouth County. I only wish that the Freeholders could show the same responsibility and meet their obligation to the children of Freehold," explained Senator Karcher.
Senator Karcher said that she would continue her work with Assemblyman Panter to explore all possibilities to provide additional funding to the Freehold Borough School District, including further efforts to get the county to begin a PILOT program with the school district.
"This is only the beginning. We will continue working to do right by the children of Freehold Borough," said Senator Karcher.
SENATE REPUBLICAN RELEASES: NONE
ASSEMBLY DEMOCRATIC RELEASES: NONE
ASSEMBLY REPUBLICAN WEBSITE RELEASES: 3
1. O'TOOLE CALLS FOR EQUITY AND FAIRNESS
IN NEW SCHOOL FUNDING FORMULA
Equitable School Aid and Property Tax Relief Linked
At today's Assembly Budget Committee hearing, Assemblyman Kevin O'Toole said New Jersey taxpayers cannot afford to continue waiting on a new school funding formula, noting that the recently announced school aid figures will provide little relief to most school districts who have seen their state aid frozen for five years.
"After five years of frozen aid these three percent increases, while surely a move in the right direction, will have little impact," said O'Toole, R-Essex, Passaic and
Bergen. "We need a new school funding formula that will be fair and equitable and that will be based on legitimate factors such as enrollment growth, special needs, and academic performance."
O'Toole said that most suburban and rural school districts have been flat-funded for five straight years and, as a result, the three percent state aid increase proposed in Governor Corzine's budget will do little to help ease the building fiscal pressures in those districts that have led to the explosive growth in property tax rates.
Education Commissioner Lucille Davy testified at today's hearing that the new funding formula is expected to be released in September. O'Toole said that will be too late to undo the damage of the past five years and questioned why it is that the state couldn't provide additional aid in recent years.
O'Toole noted that the last time the CEIFA education aid formula was fully funded the total state budget was $22.5 billion, but that during the past five years that school aid was frozen the budget increased to $33.3 billion.
"For the state budget to increase by nearly $10 billion, without any additional aid going to suburban and rural school districts is mind boggling," said O'Toole. "Clearly this is an example of misplaced priorities in this state's recent spending history. Hopefully the new funding formula will be adhered to and will be structured in a way that is fair to all districts."
2. MALONE SAYS SCHOOL FUNDING FORMULA
CONTINUES TO FAIL HIGH GROWTH DISTRICTS
Cites Jackson, Washington and Howell as examples
Saying that a lack of adequate state funding has harmed property taxpayers and students Assemblyman Joseph Malone today called on Commissioner of Education Lucille Davy to develop a school funding formula that will provide relief for school districts that have experienced high enrollment growth over the past several years.
"For five years now these school districts have seen explosive growth in enrollment while the state has frozen school aid," said Assemblyman Malone, R-Burlington, Ocean, Monmouth and Mercer. "It should be no surprise that property taxes have soared in these high enrollment districts and that the schools in those districts are struggling to provide adequate services to students."
Davy came before the Assembly Budget Committee Thursday to testify on the Department of Education's budget proposal for Fiscal Year 2008 and to discuss a variety of educational funding issues the state is facing.
Malone noted that while this year's budget does provide for a three percent aid increase in most districts -- with higher amounts in some other districts -- the overall lack of state funding for education in recent years will mean that the impact of this year's increases will be marginal at best.
He cited Jackson, Washington and Howell Townships in his legislative district as some examples of school districts that have had high enrollment growth and little help from the state. All three towns will only get a three percent increase this year.
"We need to come up with a sustainable, equitable funding formula that is going to provide the support these high enrollment growth districts desperately need," Malone said. "If we do not do so, property taxes will continue to climb and we will see more and more student services and programs cut back."
3. MCHOSE PRESSES EDUCATION COMMISSIONER
ON LOPSIDED SCHOOL-FUNDING FORMULA
Argues real property tax reform hinges
on a responsible and fair grant process
and a new school funding formula
Assemblywoman Alison Littell McHose today questioned Department of Education Commissioner Lucille Davy on the State's lopsided school funding formula and the Department's propensity to award grants to select school districts around the state in an apparently arbitrary manner.
"We all know that the State is just barely treading water financially. The taxpayers are suffocating to the point that they're fleeing the State in droves for other states with less oppressive tax structures. And still, we have yet to address the school funding formula; an egregiously lopsided system whereby 31 school districts out of over 600 receive the lion's share of state aid," said McHose, (R-Sussex, Hunterdon, Morris). "There are children elsewhere in the state that are just as deserving of the early education services that only the select few are now receiving."
Specifically, Assemblywoman McHose asked Commissioner Davy about the Department's program to provide early education services to certain 3 and 4 year old children. McHose noted that her district is unable to receive any funds under the program because it doesn't qualify, expressing frustration at the Court-ordered requirement for the State to provide early education services in only the Abbott school districts.
"As a mother of three young children—and as one whose husband is deployed oversees for 21 months—I know both how important it is for our children to receive early education as well as the struggles that single mothers face," McHose said. "My concern is that the Administration doesn't recognize that there are needy and deserving families throughout the State that could benefit from these education programs. These families don't live exclusively in the 31 Abbott districts. That's why I introduced legislation that would create a fair and equitable school funding formula, by providing funds to every school district in the state according to the statewide average cost of educating our children. Since every town and every taxpayer pays into the system, every district should have the opportunity to receive state funding for education. There are no children that are less in need of any education service, particularly early childhood education."
Assemblywoman McHose also pressed Commissioner Davy generally on her Department's methods for distributing grants. Noting that it wasn't until the 1980s that the budget began to include specific line item allocations for certain politically-favored or politically-connected school districts, McHose urged the Commissioner to create a grant system whereby every district would be given advance knowledge that funds would be available as well as the chance to apply for them.
"A merit-based system is the only fair way of distributing grant monies to school districts," McHose maintained. "Now is the time for the Governor to adopt such a policy in the Department of Education. It would reflect a real willingness to reform the grant process across the board and at the same time dovetail wonderfully with his and Senator Codey's promises to reform the practice of inserting grants into the budget at the last minute without oversight or debate."
