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Analysis of Analysis of New Jersey School New Jersey School Funding Formula Funding Formula Prepared by: Prepared by: Jesus Buitrago Jesus Buitrago Dawn Cuccolo Dawn Cuccolo Matthew Dimter Matthew Dimter Marian Enny Marian Enny Sydonie Harris Sydonie Harris

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Page 1: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Analysis of Analysis of New Jersey School New Jersey School

Funding FormulaFunding Formula

Prepared by: Prepared by: Jesus BuitragoJesus Buitrago

Dawn CuccoloDawn Cuccolo

Matthew DimterMatthew Dimter

Marian EnnyMarian Enny

Sydonie HarrisSydonie Harris

Page 2: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

The New FormulaThe New Formula $7.8 billion will be distributed for K-12 education for $7.8 billion will be distributed for K-12 education for

the 2009 fiscal year, an increase of approximately the 2009 fiscal year, an increase of approximately $530 million.$530 million.

All districts are guaranteed at least a 2% increase in All districts are guaranteed at least a 2% increase in aide during the first year. No districts will see a aide during the first year. No districts will see a decrease in total state aid during the first 3 years. decrease in total state aid during the first 3 years. Future decreases in aid would occur if districts face Future decreases in aid would occur if districts face declines in enrollment. declines in enrollment.

Only one representative model for determining Only one representative model for determining adequacy budgets for all districts is used.adequacy budgets for all districts is used.

A per-pupil adequacy budget that represents what A per-pupil adequacy budget that represents what each district should spend is used to make each district should spend is used to make calculations. calculations. New Jersey State League of Municipalities

Page 3: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

There is a base amount for elementary school students There is a base amount for elementary school students ($9,649) but this amount increases as students go up ($9,649) but this amount increases as students go up into grade levels because it is more expensive to meet into grade levels because it is more expensive to meet students’ needs as they progress through school.students’ needs as they progress through school.

Additional weights are added to the basic formula for Additional weights are added to the basic formula for at-risk students, students with limited English at-risk students, students with limited English proficiency (LEP) and special education students.  A proficiency (LEP) and special education students.  A combination weight exists for students who are both combination weight exists for students who are both at-risk and LEP.at-risk and LEP.

To encourage full-day kindergarten programs the new To encourage full-day kindergarten programs the new formula includes state funding for all at-risk 3- and 4-formula includes state funding for all at-risk 3- and 4-year-olds to attend full-day preschool. The proposal year-olds to attend full-day preschool. The proposal would also fund any 3- or 4-year-old, regardless of would also fund any 3- or 4-year-old, regardless of income, who lives in a district with the DFG income, who lives in a district with the DFG designation “A” or “B” or those in “CD” districts that designation “A” or “B” or those in “CD” districts that also have an at-risk concentration of at least 40%.also have an at-risk concentration of at least 40%.

New Jersey State League of Municipalities

Page 4: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Fund AllocationFund Allocation The formula includes two types of aid: wealth-The formula includes two types of aid: wealth-

equalized and categorical. equalized and categorical. Wealth-equalized aid: is distributed based on Wealth-equalized aid: is distributed based on

each district’s ability to gather enough local each district’s ability to gather enough local revenue. Both a community’s property wealth revenue. Both a community’s property wealth and combined income are used to determine the and combined income are used to determine the local ability to pay. This portion of the funding local ability to pay. This portion of the funding formula is applied uniformly to all districts. Then formula is applied uniformly to all districts. Then funds are distributed based on each community’s funds are distributed based on each community’s ability to pay relative to that of all others in the ability to pay relative to that of all others in the state.state.

Categorical aid: is distributed regardless of a Categorical aid: is distributed regardless of a district’s ability to raise local revenue. These district’s ability to raise local revenue. These amounts are “typically determined by multiplying amounts are “typically determined by multiplying the cost factor for a particular category by the the cost factor for a particular category by the number of students that qualify for the aid.”number of students that qualify for the aid.”

State of New Jersey Department of Education

Page 5: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Fund AllocationFund Allocation

These are the four categories that are These are the four categories that are wealth equalizedwealth equalized. When . When combined, they create the “adequacy budget.”combined, they create the “adequacy budget.”

**Adequacy Budget =Adequacy Budget =(Base Cost + AR Cost + LEP Cost + Comb.Cost + (Base Cost + AR Cost + LEP Cost + Comb.Cost +

Spec Ed Census) Spec Ed Census) x x GCAGCA

1)1) The base amount for elementary, middle, and high school The base amount for elementary, middle, and high school students:students:

Grade Level Base Grade Level Base Cost Cost WeightWeightElementary School (Elem) $9,649 1.00Elementary School (Elem) $9,649 1.00

Middle School (MS) $10,035 1.04Middle School (MS) $10,035 1.04High School (HS) $11,289 1.17High School (HS) $11,289 1.17Vocational Schools $14,789 1.31Vocational Schools $14,789 1.31

State of New Jersey Department of Education

Page 6: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Fund AllocationFund AllocationBase Cost = 9,649 Base Cost = 9,649 x [x [Elem Enr + (MS Enr Elem Enr + (MS Enr x x 1.04) + (HS Enr 1.04) + (HS Enr x x

1.17)1.17)]]

For County Vocational Districts:For County Vocational Districts:Base Cost = 9,649 Base Cost = 9,649 x [x [Elem Enr + (MS Enr Elem Enr + (MS Enr x x 1.04) + (HS Enr 1.04) + (HS Enr x x

1.17)1.17)] x ] x 1.311.31

Where:Where:AR = At-Risk (includes students that are eligible for free AR = At-Risk (includes students that are eligible for free

and reduced priced lunches)and reduced priced lunches)LEP = Limited English ProficientLEP = Limited English ProficientComb. = Combination (an LEP student who is also eligible Comb. = Combination (an LEP student who is also eligible

for free or reduced-priced lunch)for free or reduced-priced lunch)Spec Ed Census = The special education census-based Spec Ed Census = The special education census-based

costs that will be wealth-equalizedcosts that will be wealth-equalizedGCA = Geographic Cost Adjustment (Index in Appendix B)GCA = Geographic Cost Adjustment (Index in Appendix B)Enr = EnrollmentEnr = Enrollment

Page 7: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Adequacy BudgetAdequacy Budget2) The weights for at-risk & LEP students, and county 2) The weights for at-risk & LEP students, and county

vocational districts. The AR weight ranges from 0.47-vocational districts. The AR weight ranges from 0.47-0.57. The LEP weight is 0.52, while the combined 0.57. The LEP weight is 0.52, while the combined one is 0.125one is 0.125

AR Cost = 9,649 AR Cost = 9,649 x [x [Elem AR Enr + (MS AR Enr Elem AR Enr + (MS AR Enr x x 1.04) + (HS 1.04) + (HS AR Enr AR Enr x x 1.17)1.17)] x ] x AR weightAR weight

District AR Percentage AR WeightDistrict AR Percentage AR WeightLess than 20% AR 0.47Less than 20% AR 0.47

Between 20% and 60% AR (AR% x 0.25) + 0.42Between 20% and 60% AR (AR% x 0.25) + 0.42Greater than or equal to 60% AR 0.57Greater than or equal to 60% AR 0.57

LEP Cost = 9,649 LEP Cost = 9,649 x [x [(Elem LEP Enr) + (MS LEP Enr (Elem LEP Enr) + (MS LEP Enr x x 1.04) + 1.04) + (HS LEP Enr (HS LEP Enr x x 1.17)1.17)] x ] x 0.50.5

Combination Cost = 9,649 Combination Cost = 9,649 x [x [Elem Comb Enr) + (MS Comb Elem Comb Enr) + (MS Comb Enr Enr x x 1.04) + (HS Comb Enr 1.04) + (HS Comb Enr x x 1.17)1.17)] x ] x (AR Weight + 0.125)(AR Weight + 0.125)

State of New Jersey Department of Education

Page 8: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Adequacy BudgetAdequacy Budget3) Two-thirds of the census-based costs for the general special 3) Two-thirds of the census-based costs for the general special

education category.education category.4) All of the census-based costs for speech.4) All of the census-based costs for speech.

The census-based method is used to fund a large portion of The census-based method is used to fund a large portion of special education costs. The average excess costs are $10,898 special education costs. The average excess costs are $10,898 for general special education and $1,082 for speech. The for general special education and $1,082 for speech. The general special education cost is multiplied by the State general special education cost is multiplied by the State average classification rate (14.69%) and district enrollments. average classification rate (14.69%) and district enrollments. The census-based cost for general special education is pro-The census-based cost for general special education is pro-rated. Only two-thirds of this portion is included in the adequacy rated. Only two-thirds of this portion is included in the adequacy budget. budget.

The speech excess cost is multiplied by the State average The speech excess cost is multiplied by the State average speech classification rate (1.897%) and district enrollments, and speech classification rate (1.897%) and district enrollments, and the entire cost is funded in the adequacy budget. the entire cost is funded in the adequacy budget.

Spec Ed Census = (Total Enr x 14.69% x 10,898 x 2/3) + (Total Enr Spec Ed Census = (Total Enr x 14.69% x 10,898 x 2/3) + (Total Enr x 1.897% x 1,082)x 1.897% x 1,082)

(Special Education Cost x 2/3) (Speech Cost)(Special Education Cost x 2/3) (Speech Cost)State of New Jersey Department of Education

Page 9: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Categorical CostsCategorical Costs

Categorical costs - There is also funding for Categorical costs - There is also funding for the following categories:the following categories:

1)1) 75% of “extraordinary” special education costs75% of “extraordinary” special education costs

2) One-third of the census-based costs for the 2) One-third of the census-based costs for the general special education categorygeneral special education category

3) Security costs3) Security costs

4) Transportation4) Transportation

5) Preschool5) Preschool

6) Debt service & Benefits Payments6) Debt service & Benefits Payments

7) School Choice Aid7) School Choice AidState of New Jersey Department of Education

Page 10: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Categorical CostsCategorical CostsSpecial Education: Special Education:

• The need to was recognized to enhance fundsThe need to was recognized to enhance funds• Funding for 75% of the cost over the threshold Funding for 75% of the cost over the threshold

amount for educating students is provided.amount for educating students is provided.• The threshold for extraordinary costs will be The threshold for extraordinary costs will be

$40,000 for students placed in in-district $40,000 for students placed in in-district placements, and $55,000 for students in placements, and $55,000 for students in separate facilities.separate facilities.

Spec Education Categorical Aid = Total Enr Spec Education Categorical Aid = Total Enr x x 14.69% 14.69% x x $10,898 $10,898 x x 1/3 1/3 x x GCA18GCA18

Extraordinary Aid = Extraordinary Aid = [[(Actual In-District Cost (Actual In-District Cost - - $40,000) + $40,000) + (Actual Separate Cost (Actual Separate Cost - - $55,000)$55,000)] x ] x 75%75%

State of New Jersey Department of Education

Page 11: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Categorical CostsCategorical CostsSecurity:Security:

• This new formula recognizes the need to increase This new formula recognizes the need to increase funding in this area.funding in this area.

• Every student generates a security cost of $70. Every student generates a security cost of $70. • Each at-risk student generates an additional Each at-risk student generates an additional

security cost that increases as at-risk security cost that increases as at-risk concentration increases, up to a maximum of $406 concentration increases, up to a maximum of $406 per at-risk student (in districts where at least 40% per at-risk student (in districts where at least 40% of students are AR).of students are AR).

Security Aid = (Total Enr Security Aid = (Total Enr x x 70) + (AR Enr 70) + (AR Enr x x AR Security AR Security Amount) Amount) x x GCA19GCA19

AR Security Amount for Districts with:AR Security Amount for Districts with:

Less than 40% AR Concentration = AR Percent Less than 40% AR Concentration = AR Percent x x 10151015

Greater than or equal to 40% AR Concentration = $406Greater than or equal to 40% AR Concentration = $406State of New Jersey Department of Education

Page 12: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Categorical CostsCategorical Costs

Transportation:Transportation:• No changes were made to the funding of transportation No changes were made to the funding of transportation

from the previous formulafrom the previous formula

Regular Transportation Aid = (Reg Count Regular Transportation Aid = (Reg Count x x 383.88) + (Reg 383.88) + (Reg Count Count x x 10.50 10.50 x x Reg Avg Dist)Reg Avg Dist)

Special Transportation Aid = (SE Count Special Transportation Aid = (SE Count x x 2,675.77) + (SE Count 2,675.77) + (SE Count x x 5.10 5.10 x x SE Avg Dist)SE Avg Dist)

Prorated Transportation Aid = (Regular Transportation + Prorated Transportation Aid = (Regular Transportation + Special Transportation) Special Transportation) x x 81.4876%2181.4876%21

Where:Where:Reg Count = Number of students eligible for regular transportation, including Reg Count = Number of students eligible for regular transportation, including

aid-in-lieuaid-in-lieuReg Avg Dist = Average distance from home to school for students eligible for Reg Avg Dist = Average distance from home to school for students eligible for

transportationtransportationSE Count = Number of students receiving special transportationSE Count = Number of students receiving special transportationSE Avg Dist = Average distance from home to school for students receiving SE Avg Dist = Average distance from home to school for students receiving

special transportationspecial transportationState of New Jersey Department of Education

Page 13: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Categorical CostsCategorical CostsPreschool:Preschool: Districts are required to offer high quality preschool Districts are required to offer high quality preschool

to all three- and four-year-olds in the A and B District to all three- and four-year-olds in the A and B District Factor Group (DFG) districts and to all three- and Factor Group (DFG) districts and to all three- and four-year olds in CD districts where the concentration four-year olds in CD districts where the concentration of at-risk students is 40% or greater.of at-risk students is 40% or greater.

All other districts will receive state funds and be All other districts will receive state funds and be required to offer high quality preschool programs to required to offer high quality preschool programs to all all at-risk at-risk three- and four-year-olds. This expansion three- and four-year-olds. This expansion will be phased in over time, with the goal of reaching will be phased in over time, with the goal of reaching at least 80% of the eligible population in all districts at least 80% of the eligible population in all districts within six years.within six years.

Preschool Aid = Preschool Aid = [[(In-Dist Enr (In-Dist Enr x x $11,506) + (Provider Enr $11,506) + (Provider Enr x x $12,934) + (Head Start Enr $12,934) + (Head Start Enr x x $7,146)$7,146)] x ] x GCAGCA

State of New Jersey Department of Education

Page 14: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Categorical CostsCategorical Costs Debt Service Aide & Benefits PaymentDebt Service Aide & Benefits Payment

• No changes were made under the new formulaNo changes were made under the new formula

School Choice Aide:School Choice Aide:• N.J.S.A. 18A:36B-13, which allowed inter-N.J.S.A. 18A:36B-13, which allowed inter-

district public school choice expired.district public school choice expired.• Nonetheless, school choice aid will be provided Nonetheless, school choice aid will be provided

to ensure that choice districts are adequately to ensure that choice districts are adequately funded for these students.funded for these students.

• School choice students will be counted as School choice students will be counted as resident students of the choice district they resident students of the choice district they attend. These receive aide as resident attend. These receive aide as resident students.students.

State of New Jersey Department of Education

Page 15: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

District AideDistrict Aide In order to determine a district’s aide, it wealth must In order to determine a district’s aide, it wealth must

be calculated through equalized valuation and be calculated through equalized valuation and aggregate income as they are applied in CEIFA (the aggregate income as they are applied in CEIFA (the older formula). older formula).

The Department sets the statewide property rate and The Department sets the statewide property rate and income rate. For FY 2009, the property value rate is income rate. For FY 2009, the property value rate is set to approximately 92.7 cents per $100 of equalized set to approximately 92.7 cents per $100 of equalized valuation. For FY 2009, the income rate is valuation. For FY 2009, the income rate is approximately 4.55%. The rates are applied to each approximately 4.55%. The rates are applied to each district’s equalized valuation and aggregate revenue district’s equalized valuation and aggregate revenue to determine each district’s ability to support their to determine each district’s ability to support their adequacy budget (local fair share). adequacy budget (local fair share).

State of New Jersey Department of Education

Page 16: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

District AideDistrict Aide The wealth-equalized portion of a district’s aid is then The wealth-equalized portion of a district’s aid is then

calculated by subtracting the LFS from the adequacy budget.calculated by subtracting the LFS from the adequacy budget.LFS = (Eq Val LFS = (Eq Val x x Prop Val Rate Prop Val Rate x x 50%) + (Aggregate 50%) + (Aggregate

Income Income x x Income Rate Income Rate x x 50%)50%)

Where:Where:Eq Val = District’s total equalized valuationEq Val = District’s total equalized valuationProp Val Rate = Property value rate for FY 2009 is Prop Val Rate = Property value rate for FY 2009 is

0.0092690802, or about 92.7 cents per $100 of equalized 0.0092690802, or about 92.7 cents per $100 of equalized valuationvaluation

Income Rate = 0.04546684Income Rate = 0.04546684

The final calculation of a district’s aid allocation is :The final calculation of a district’s aid allocation is :

State Aid = (Adequacy Budget – Local Fair Share) + State Aid = (Adequacy Budget – Local Fair Share) + Categorical AidsCategorical Aids

Page 17: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Changes in FormulaChanges in Formula One model is used to calculate funds. It contains a base cost One model is used to calculate funds. It contains a base cost

and adds weights to different components of the formula in and adds weights to different components of the formula in order to make adjustmentsorder to make adjustments

Increased funding for special education, but aide is also Increased funding for special education, but aide is also dependent on district wealth.dependent on district wealth.

Increased funding for LEP studentsIncreased funding for LEP students Increased funding for AR studentsIncreased funding for AR students

A geographic cost adjustment is used to reflect educational A geographic cost adjustment is used to reflect educational cost differences amongst countiescost differences amongst counties

Increased funding for securityIncreased funding for security

Requiring and funding full day preschool programs.Requiring and funding full day preschool programs.

No change in transportation fundingNo change in transportation funding

No change in debt aide and benefits paymentNo change in debt aide and benefits payment

School choice aid programs remain in place. School choice aid programs remain in place.

Page 18: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Adequacy Adequacy BudgetBudget

Page 19: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

ADEQUACY BUDGETADEQUACY BUDGET

State aid distributed through State aid distributed through foundation formulafoundation formula

Calculations based on a per-pupil Calculations based on a per-pupil adequacy budgetadequacy budget

Spending on student to achieve NJ Spending on student to achieve NJ educational standards educational standards

Page 20: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Base AmountBase Amount

Calculated for elementary Calculated for elementary school-$9,649school-$9,649

Increased for middle, high, Increased for middle, high, and vocational schooland vocational school

Increased expenses Increased expenses needed as students needed as students progress through schoolprogress through school

Page 21: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Grade Level Base Cost WeightGrade Level Base Cost Weight

Elementary School $9,649 1.00Elementary School $9,649 1.00 Middle School $10,035 1.04Middle School $10,035 1.04 High School $11,289 1.17High School $11,289 1.17 Vocational Schools $14,789 1.31Vocational Schools $14,789 1.31 Adequacy Budget =Adequacy Budget = (Base Cost + AR Cost + LEP Cost + (Base Cost + AR Cost + LEP Cost +

Comb.Cost + Spec Ed Census) Comb.Cost + Spec Ed Census) x x GCAGCA Base Cost = 9,649 Base Cost = 9,649 x [x [Elem Enr + (MS Enr Elem Enr + (MS Enr x x

1.04) + (HS Enr 1.04) + (HS Enr x x 1.17)1.17)]]

Page 22: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Additional WeightsAdditional Weights

Increases to basic formulaIncreases to basic formula At-Risk students (students eligible for At-Risk students (students eligible for

free or reduced lunch)free or reduced lunch) Limited English Proficiency (LEP) Limited English Proficiency (LEP)

studentsstudents Special Education StudentsSpecial Education Students Combination weight calculated for Combination weight calculated for

At-Risk and LEP students At-Risk and LEP students

Page 23: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Additional ChallengesAdditional Challenges

High concentration of poverty in a High concentration of poverty in a districtdistrict

At-Risk weights increase as poverty At-Risk weights increase as poverty weight increasesweight increases

49% of NJ students eligible for free or 49% of NJ students eligible for free or reduced lunch reside in non-Abbott reduced lunch reside in non-Abbott districtsdistricts

Providing full-day KindergartenProviding full-day Kindergarten

Page 24: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Adequacy Budget Cost Adequacy Budget Cost DifferentialsDifferentials

Cost differences throughout the stateCost differences throughout the state Adjusted by geographic cost indexAdjusted by geographic cost index

ResourceResource

NJ DOE NJ DOE www.state.nj.us/educationwww.state.nj.us/education

Page 25: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Special Education FundingSpecial Education Funding

100% of Special Education funding 100% of Special Education funding included in adequacy budget and included in adequacy budget and equalized equalized 

Special Education Funding split Special Education Funding split between categorical aid and between categorical aid and equalized aid.equalized aid.

Page 26: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Special Education CensusSpecial Education Census

Use statewide average classification Use statewide average classification rate multiplied byrate multiplied by district enrollment district enrollment multiplied by statewide average multiplied by statewide average excess cost of special ed students excess cost of special ed students 

Portion included in the adequacy Portion included in the adequacy budget, remainder paid through budget, remainder paid through categorical aid (aid independent of categorical aid (aid independent of wealth) wealth) 

Page 27: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Special Education FundingSpecial Education Funding

currently funded through a pupil currently funded through a pupil weighting systemweighting system

children are assigned to “tiers” that children are assigned to “tiers” that are based on categories disabilityare based on categories disability

districts receive State categorical districts receive State categorical aid based on the number of students aid based on the number of students in the district in each tierin the district in each tier

Page 28: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Special Education FundingSpecial Education Funding

District receive $310 for children under District receive $310 for children under tier I for up to four related servicestier I for up to four related services

Districts receive $3,260 for each child Districts receive $3,260 for each child in tier II (mild disability), in tier II (mild disability),

$5,975 for each child in tier III $5,975 for each child in tier III (moderate disability) (moderate disability)

$13,037 for each child in tier IV (any $13,037 for each child in tier IV (any student with a disability receiving student with a disability receiving intensive services). intensive services).

Page 29: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Special Education FundingSpecial Education Funding

State also reimburses districts for a State also reimburses districts for a portion of the costs associated with portion of the costs associated with educating children with extraordinary educating children with extraordinary needsneeds

defined as those whose education defined as those whose education costs exceed $40,000costs exceed $40,000

This amounts to approximately 23% This amounts to approximately 23% of the districts $40,000 per childof the districts $40,000 per child

Page 30: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

Approach to Special Education Approach to Special Education FundingFunding

• Approach recognizes lack of correlation Approach recognizes lack of correlation between disability category and cost. between disability category and cost.

• Reduces incentive to over-classify students. Reduces incentive to over-classify students. • Increases categorical aid to districts for Increases categorical aid to districts for

extraordinary costs and compensates extraordinary costs and compensates districts that have a higher percentage of districts that have a higher percentage of children with greater and more expensive children with greater and more expensive needs. needs.

• Provides predictable level of special Provides predictable level of special education funding. education funding.

• Minimizes administrative burdens and Minimizes administrative burdens and provides districts with greater discretion provides districts with greater discretion and flexibility. and flexibility.

Page 31: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

The School Funding Reform Act of The School Funding Reform Act of 20082008

ProsPros• Expands the definition of at-risk students Expands the definition of at-risk students • Aid is distributed based on a school district's Aid is distributed based on a school district's

enrollment, with extra funding allocated to enrollment, with extra funding allocated to schools with an above average number of poor schools with an above average number of poor students and ELL students. students and ELL students.

• Establishes an “adequacy budget” for each Establishes an “adequacy budget” for each district.district.

Page 32: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

The School Funding Reform Act of The School Funding Reform Act of 20082008

ProsPros• More affluent areas get less state aid More affluent areas get less state aid

while poorer areas and those with while poorer areas and those with increasing disadvantaged students will increasing disadvantaged students will receive greater levels of funding.receive greater levels of funding.

• Funding has been created for an Funding has been created for an estimated 30,000 low-income 3- and 4-estimated 30,000 low-income 3- and 4-year-olds to attend preschool.year-olds to attend preschool.

Page 33: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

The School Funding Reform Act of The School Funding Reform Act of 20082008

•ProsPros More money is given to needy districts More money is given to needy districts

outside the state’s large cities. outside the state’s large cities. There is a minimum 2-percent increase for There is a minimum 2-percent increase for

every district in the state. every district in the state. Communities are required to pay a “fair Communities are required to pay a “fair

share” contribution of property taxes to share” contribution of property taxes to support school budgets.support school budgets.

Page 34: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

The School Funding Reform Act of The School Funding Reform Act of 20082008

ConsCons• Eliminates money for after school programs Eliminates money for after school programs

such as tutoring, activities and clubs as well as such as tutoring, activities and clubs as well as health services.health services.

• Eliminates the Abbott districts designation for Eliminates the Abbott districts designation for

the 31 poorest districts.the 31 poorest districts.

Page 35: Analysis of New Jersey School Funding Formula Prepared by: Jesus Buitrago Dawn Cuccolo Matthew Dimter Marian Enny Sydonie Harris

The School Funding Reform Act of The School Funding Reform Act of 20082008

ConsCons• Requires that some districts use part of their Requires that some districts use part of their

state aid reduce the communities property tax.state aid reduce the communities property tax. • Distributes special education aid on a wealth-Distributes special education aid on a wealth-

equalized basis. equalized basis.

• Uses per capita income, instead of property Uses per capita income, instead of property wealth alone, in formulating a district’s wealth alone, in formulating a district’s contribution to cost of educating the students contribution to cost of educating the students within the district. within the district.

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ConclusionConclusionThe State Department has made The State Department has made

intensified efforts that the final school intensified efforts that the final school funding proposal is:funding proposal is:

Adequate and EquitableAdequate and Equitable

Adopted expeditiously for Adopted expeditiously for implementation for FY2009implementation for FY2009

To end unpredictable, adhoc fundingTo end unpredictable, adhoc funding

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ReferencesReferences

New Jersey State League of Municipalities. New Jersey State League of Municipalities. (2007) Governor Announces New School (2007) Governor Announces New School Funding Formula. Retrieved on October Funding Formula. Retrieved on October 13, 2008 from: 13, 2008 from: http://www.njslom.org/school_funding_preshttp://www.njslom.org/school_funding_press_release_121207.html s_release_121207.html

State of New Jersey Department of State of New Jersey Department of Education. (2007). A Formula For Education. (2007). A Formula For Success: All Children, All Communities. Success: All Children, All Communities. Retrieved on October 14, 2008 from: Retrieved on October 14, 2008 from: http://www.state.nj.us/education/sff/http://www.state.nj.us/education/sff/

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ReferenceReference

• Revising NJ’s School Funding Formula Revising NJ’s School Funding Formula (2007) Retrieved on October 16, (2007) Retrieved on October 16, 2008 from: 2008 from: http://www.nj.gov/education/sff/113007http://www.nj.gov/education/sff/113007stake.pptstake.ppt..

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ReferencesReferences Joint Legislative Committee on Public School Funding Joint Legislative Committee on Public School Funding

Reform. (2008). A New Formula For Success. Retrieved Reform. (2008). A New Formula For Success. Retrieved October 7, 2008. http://www.state.nj.us/education/sff/October 7, 2008. http://www.state.nj.us/education/sff/

Ryan, Lisa.(2008). School-funding formula on trial before Ryan, Lisa.(2008). School-funding formula on trial before N.J. court. Retrieved October 14, 2008. N.J. court. Retrieved October 14, 2008. http://www.courierpostonline.com/apps/pbcs.dll/article?http://www.courierpostonline.com/apps/pbcs.dll/article?AID=/20080923/NEWS01/809230361/1006AID=/20080923/NEWS01/809230361/1006

Ryan, Lisa. (2008) Court weighs funding formula: Justices Ryan, Lisa. (2008) Court weighs funding formula: Justices will decide legality of schools plan. Retrieved October 14, will decide legality of schools plan. Retrieved October 14, 2008. 2008. http://www.app.com/apps/pbcs.dll/article?AID=/20080923/Nhttp://www.app.com/apps/pbcs.dll/article?AID=/20080923/NEWS03/809230342/1007/rss03EWS03/809230342/1007/rss03