School aid boost softens tax hikes

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By significantly boosting state aid to schools for two years, officials have continued to slow, but still can't stop, the increasing cost of public education borne by local property taxpayers.

A Gannett New Jersey review of proposed 2008-09 school tax levies, most of which will be before voters Tuesday, shows levies would increase 2.8 percent combined if approved, due to a $500 million increase bringing direct aid to schools to $7.8 billion.

This would be the first time in years growth hasn't exceeded 4 percent, which is the level of a cap implemented before the current school year.

"This validates the cap as a real important step in the right direction," said Assembly Speaker Joe Roberts, D-Camden, noting that previous years' growth has exceeded 6 percent.

Levies are the total pot of money government collects from property taxpayers. While they don't directly translate into individual tax bills, which also depend on the change in property values, levies generally correlate with tax increases and decreases.

The state's 615 school districts have a combined $12.18 billion in levies proposed for next school year, in addition to the $7.78 billion in aid they get from the state. The 2.8 percent increase in levies is down from 4.3 percent in the current year and 6.2 percent the year before.

On Tuesday, voters in 549 school districts will decide whether to approve levies that total $11.26 billion. Levies that are rejected could be trimmed. Other districts' levies aren't put before voters.

Gov. Jon S. Corzine took the smaller-than-usual levy increase as a sign his fiscal policies are working.

"Certainly he expects the trend to continue, and he expects property taxpayers to see even more downward pressure on property taxes," Corzine spokesman Jim Gardner said. "The state is at a turning point, and clearly the governor's fiscal policies are starting to produce the kind of responsible spending and tax relief New Jerseyans are demanding."

Gardner said the school funding formula guarantees no district will have decreased aid through at least the 2010-2011 school year and noted Corzine has advocated for increased education funding even in tough economic times.

Steve Lonegan, executive director of Americans for Prosperity, scoffed that Democratic leaders would be pleased with a 2.8 percent hike in tax levies when they're proposing cuts to municipalities and have raised several state taxes in recent years.

"So what? Big deal," Lonegan said. "So we raise every other tax on the planet and tax people out of the state so their levy can be a little bit lower. They should be cutting these lax levies, not increasing them."

New Jersey leads the nation in per-pupil spending, with a projected average of $17,719 to be spent per pupil next year, and ranks fifth in state aid with $7,984 per pupil.

For the current school year, lawmakers implemented the levy cap and boosted aid to schools by $300 million. For the coming year, they're proposing the $500 million aid increase and have adopted Corzine's new school funding formula meant to undo years of underfunding and inequitable funding. Under the formula, the state increased aid to all districts, many of whom haven't seen increases in years, between 2 percent and 20 percent.

The formula also scraps the so-called Abbott designation meant to balance education spending between the poorest and richest districts, but that plan has yet to be deemed constitutional by the state Supreme Court.

"It's fascinating what can happen when after seven years the state partially lives up to its commitment to help fund the cost of local education," said Senate Minority Leader Thomas Kean Jr., R-Union, who opposed the new formula.

Frank Belluscio, spokesman for the New Jersey School Boards Association, said the lower levy growth proves what the group has said for years: flat school aid has been a large driver of the state's highest-in-the-nation property taxes.

"Every dollar of state aid is a dollar that does not have to come out of the local property taxpayers' pocket," Belluscio said. "It helps districts expand programs where needed, and it also helps take the burden off property taxpayers."

The new formula more than proves that point, as districts that got bigger percentage boosts in state aid have proposed raising their local levies less than those receiving more modest increases from the state.

Direct state aid and local levies combined are proposed to be 4.5 percent greater than the current year. Including the amount the state pays toward teachers' pensions, education funding is slated to increase by 5.6 percent next year.

Districts whose direct state aid is being increased by more than 10 percent have proposed raising the levy on local property taxpayers by less than 2 percent. Those whose aid increased less than 10 percent are seeking to raise their levies by 3.9 percent.

Even in the levy cap's second year, 110 districts are seeking to raise levies more than 4 percent -- which can be done without permission for enrollment or state health benefit increases, or through a waiver from the Department of Education for items such as energy costs, a loss of surplus or special education.

About 146 districts had their levies come in at the 4 percent cap, while 51 districts remained essentially flat and 57 lowered their levy amounts.

This year's ballots also set a record for the fewest number of second questions being put before voters. With a new law that requires 60 percent support to pass an additional question, rather than a simple majority, only 33 finance questions in 28 districts that seek $12.2 million will appear on Tuesday's ballots. Last year, there were 87 questions in 65 districts seeking $33.1 million. Since 1997 the number of add-on questions has ranged from 72 to 176.

The new law also forbids local governing bodies from overturning a rejected additional question, but they still can enact a school budget without making cuts even if voters defeat a district's base levy.

Last year's approval rate for additional questions of 46 percent would have plummeted to 25 percent under the supermajority rule, according to the School Boards Association, which has said the law is unfair because it gives greater weight to "no" votes. But Roberts, a proponent, said it makes school officials more accountable.

"School board officials know there's going to be an even higher level of scrutiny than ever before," Roberts said.

Unaffected by the supermajority rule are questions seeking approval to sell bonds to finance school construction. This year, 15 districts have placed $136 million worth of borrowing before voters.

Nonfinance questions include Frenchtown and Plumsted asking whether to change the size of their school boards and Hardyston asking whether to recall a board member.

Reach Gregory J. Volpe at gvolpe@gannett.com
Original from Courier Post

[oldhardhead]

I guess RSSfeed is really just a newsfeed and not a member.

"School aid boost softens tax hikes"

Is the reporter kidding? Where does the state "school aid" coming from? (Hint: it comes from our extreme state taxes).

There goes the "$2.7 billion in cuts in the budget" that our Governor has convinced the reporters is real. News articles keep repeating it over and over...

I don't see it. The spending on NJEA and CWA members has increased.

Our school districts are spending much more without an increase in the number of students. The teachers can stop holding their breath and stomping their feet, they are no longer "working without a contract". They have HUGE increases in their salary, for years to come, thanks to the new contracts. We have a school building expansion for a new computer lab, new computers in all schools, more teachers... and more "professional development for the staff", not at their expense, but ours.

So, instead of lowering our local property taxes because the state is giving them more money, they spend more and the superintendents brag about what a great job they did to prevent a large tax increase.

They have got to do a much better job than that.

Tuesday I'm voting NO.

[mindlessme]

School aid boost softens tax hikes .The took it from Municapalities ang gave it to the schools from what I understand.So now our taxes go up in another area.

[oldhardhead]

Originally Posted by mindlessme

School aid boost softens tax hikes .The took it from Municapalities ang gave it to the schools from what I understand.So now our taxes go up in another area.

You got that right. They cut aid to municipalities. There were increases in aid to schools. I think they will find a way to spend it.

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Just for fun:

Pick a school:
NEW JERSEY SCHOOL REPORT CARD 2006-2007

click on "See all data sections"

There's lots of info, only for one year... but interesting.

Camden... 49.8% graduation rate, 2% of expenses paid by local taxes, 84% paid by state. $13,314 total cost per pupil.

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They stopped aid to municipalities with less than 5000 people, cut aid in half to municipalities with less than 10,000 people and probably cut aid to us as well.

Why "punish" small towns?

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...And Vineland and Millville, with all of their "commercial rateables" are Abbott districts ("poorer urban districts") as well. I guess it just bolsters my point that "commercial rateables" don't automatically translate into lower taxes.

[Pineygirl]

They stopped aid to municipalities with less than 5000 people, cut aid in half to municipalities with less than 10,000 people and probably cut aid to us as well.

Why "punish" small towns?

Fewer voters, and I'd bet the smaller the town, the more likely it trends Republican.

[mindlessme]

I wonder why Franklin Township Gloucester County School isn't on there.Or am I just not seeing it?
I can see it on the school web site.

[oldhardhead]

I wonder why Franklin Township Gloucester County School isn't on there.Or am I just not seeing it?
I can see it on the school web site.

Three schools listed seperately:
Select a school:

CAROLINE L REUTTER SCHOOL
MAIN ROAD SCHOOL
MARY F. JANVIER SCHOOL

[oldhardhead]

duplicate post. I found the edit button. now where is the delete button?

[mindlessme]

I saw the report card on Franklin's web site.Thanks oldhardhead

[oldhardhead]

You Are Welcome.