GSCS comments on legislature’s conversation re: addressing its failure to meet its legislated promise to fund extraordinary aid for special education students whose individual program annual costs exceed $40K.

Since 2003, this category of aid has not increased one cent, even though statutorily promised costs to local districts call for updating this particular aid annually. Today, according to the Office of Legislative Services, $174M+ should be appropriated for these costs to local districts per the state’s own law. Since 2003 this aid has been frozen at $52, meaning that the legislature’s inaction to fund this mandated program aid, now requires local taxpayers to fund the additional difference of $122+ .

When legislators ask why property taxes are rising beyond school caps, this is a prime example that responds to that question. When state formula school aid is held flat, the legislature drops the ball and taxpayers – and often other school programs – have to pick it up. Thus another increase in local property taxes. When the state doesn’t contribute its legislated share, there’s no way around it. School funding formula aid has been held flat altogether since 2002. That, combined with ever-increasing cost drivers - health benefits, utilities, insurances - that increase at high rates well above caps, clearly lead to generating larger property tax increases.

Every year since 2003, the legislature has talked about funding this category or extraordinary aid for special education students, but in the end has not followed through. This is a very clear violation of its legislated promise to fund our neediest students, as well as a literal passing of the buck to local communities. The result?

ü      Increased property tax burden – now at $122M - directly relating to legislative inaction.

ü      Destabilization of local school budgets, especially due to the unpredictable nature of disabled student enrollments by locale.

ü      Regular education student families and disabled student families are pitted against one another since they wind up having to fight over dwindling education dollars.

Kudos go to Senator Barbara Buono who has brought this issue to the fore during FY07 Budget discussions. Recognizing that the tie between school funding aid and property taxes is “inextricably linked” – combined with understanding the valid and valuable help extraordinary aid provides to all students within all districts – Senator Buono is working hard to get some additional aid in this category for FY07, saying that an increase would be a desperately needed sign of a “good faith” beginning to show communities that show Trenton is responding to property tax needs, starting now.

Senator Buono has also suggested where to look for funding this need, finding some additional surplus in the UEZ (Urban Enterprise Zones); when extraordinary aid was full funded in 2003, the Appropriations Act at that time directly linked that aid on an increase in the realty transfer tax. Whatever potential there is for securing funds for extraordinary aid for our neediest students, it is likely that however this aid might be funded,  it will be subject to change in next year’s budget cycle since school funding overhaul has been promised to be on Trenton’s  table as soon as the summer. Thus the administration’s concern that the legislature not seek ‘one-shot’ solutions that will dig holes in FY08’s budget should not be relevant in this case.