Shortly after taking office, Governor Jon Corzine charged the State Legislature with reforming the state's school funding formula. As the OC/OS newsletter has documented, activity heated up considerably in 2006, but has slowed in 2007. This update reviews key events over the past year and identifies some developments likely to influence efforts to revamp the school funding formula as we head into fall 2007, a season that will include a legislative campaign and a "lame duck" session of the legislature in November/December. The outcome remains uncertain and the stakes remain high for all of New Jersey's children and communities.

Initial Efforts

Governor Corzine called a special joint legislative session in 2006 to tackle property tax reform and school funding. Toward the end of the special session, Commissioner Davy unveiled a study commissioned by the State to identify the cost of public education and form the basis of the new funding formula. After the study's release, a series of hearings were held to air public reactions to the study and the estimates of the cost of a public education in New Jersey. The study was met with resounding criticism from educators, administrators, advocates, and parents.

In response, the State hired nationally renowned experts to review the report. Their critiques, released to the public in January 2007, cited the same shortcomings. Soon thereafter, Governor Corzine publicly announced his plan to defer resolution of a new funding formula for one more year, or until 2008.

Recent Developments

Stakeholder meetings. Education Commissioner Lucille Davy convened four "stakeholder meetings" to date to discuss topics purportedly related to the funding formula. The first was a review and deeper discussion of the cost study. At that meeting Commissioner Davy publicly announced that the NJDOE would make the needed adjustments to the study. The remaining meetings were about vocational schools, charter schools, choice, and early childhood respectively. The Education Law Center's (ELC) research director, Lesley Hirsch, referred to the meetings as "inconclusive," adding that the NJDOE has "sidestepped most of the more serious issues of cost, state share, and tax implications" in favor of less controversial issues with less direct bearing on the funding formula.

Funding formula calculations. ELC is currently involved in a lawsuit against the state and the NJDOE seeking the release of a memo from 2003 that details three alternative school funding formulas along with their impact on state property taxes. The NJDOE fought to keep the memo secret, but, because of actions taken by ELC, the court ordered the documents be turned over. The released document clearly indicates that the NJDOE is examining various school funding formulas but the actual content of the memo, including all relevant statistics, was completely blacked out. ELC is back in court to gain access to the pertinent information.

Leadership. Unofficial reports in both the Star Ledger and the Jersey Journal have suggested that Governor Corzine might replace current Education Commissioner Lucille Davy with State Senator and Bayonne Mayor Joseph Doria. According to state officials, Corzine wants Doria in a top education position to oversee the new school funding proposal. Policy makers such as Richard Codey (D, Essex) believe that, "Joe would be fabulous for the administration" and that Doria, "knows education -- he knows it inside and out." The reports mention that Corzine might make Doria his chief advisor on educational policy instead, which would enable Doria to maintain his mayoralty.

Legislative elections and calendar. The state's legislative session ended June 28th with a State Budget in place, ensuring that any new school funding formula would become an item for the fall session and 2008. Actual progress may be further delayed until at least mid-November, with legislators unlikely to put any potentially controversial legislation through before elections. A likely window for action will take place after the elections, however. Four out of five members of the Senate Education Committee already are lame duck legislators. The Chair of the Assembly Education Committee is currently in the midst of a primary recount. If progress isn't made before 2008, we will be facing a new legislature and perhaps starting from scratch on the funding formula.

The Outlook

The NJDOE's reluctance to publicize its school funding formula proposals, its failure to address significant problems with the cost study, the tenuous future of Commissioner Davy, and the possibility of change after the November elections work together to create an air of uncertainty.

There is opportunity for progress, however.

Public access to funding proposals and work being performed now at the NJDOE, correction of weaknesses in the original cost study, and new leadership could lay the necessary foundation for an equitable and adequate formula that serves the needs of all New Jersey children. Although many school districts still face difficulties within the current funding framework, ultimately it is more important to get the formula right than to get it fast.

For more information, contact Lesley Hirsch lhirsch@edlawcenter.org.