Post on 08-Jan-2016
description
Revising NJ’s School Revising NJ’s School Funding Formula: A Tale Funding Formula: A Tale
of 3 Schoolsof 3 Schools
Kristi Schoppe, Mark Willis, Mike Diorio, Edwin WargoKristi Schoppe, Mark Willis, Mike Diorio, Edwin WargoMED 7201, School Finance & FacilitiesMED 7201, School Finance & Facilities
Professor Karen ThorpeProfessor Karen ThorpeWilmington UniversityWilmington University
Essential QuestionsEssential Questions
What is NJ’s new funding formula?What is NJ’s new funding formula? How does the new funding formula impact How does the new funding formula impact
schools?schools? How is the funding formula calculated?How is the funding formula calculated? How does the funding formula look in 3 How does the funding formula look in 3
District Factor Groups (Abbott, CD, and I)District Factor Groups (Abbott, CD, and I) How does the new funding formula How does the new funding formula
compare among District Factor Groups compare among District Factor Groups (Abbott, CD, and I).(Abbott, CD, and I).
What is the first line of What is the first line of Tale of Two CitiesTale of Two Cities??
The Purpose:The Purpose: The current model leaves too many children The current model leaves too many children
out of luck simply because they live in the out of luck simply because they live in the wrong ZIP code.wrong ZIP code. (49% of all low-income (49% of all low-income students in NJ live outside of the Abbott students in NJ live outside of the Abbott districts)districts)
To replace the current unpredictable system of To replace the current unpredictable system of distributing state aid. The new formula distributing state aid. The new formula minimizes 26 aid categories into 10.minimizes 26 aid categories into 10.
This is an equalization system like we discussed in class
This new formula expands the definition of “needy” students, This new formula expands the definition of “needy” students, making sure those children who face multiple obstacles are fully making sure those children who face multiple obstacles are fully funded and ensuring that aid is distributed to middle-income funded and ensuring that aid is distributed to middle-income districts accordingly. districts accordingly.
Equalization Aid = Adequacy Budget - Local Fair Share
Adequacy BudgetAdequacy Budget represents the sufficient represents the sufficient level of resourceslevel of resourcesto ensure the NJ’s to ensure the NJ’s educational standards educational standards are met.are met.
Local Fair ShareLocal Fair Share represents what a represents what a community community should be able to should be able to contribute in local property contribute in local property taxes.taxes.
Funding NotesFunding Notes
•No district will see a decrease in state aid from the No district will see a decrease in state aid from the 2008 school year for the first three years of the new 2008 school year for the first three years of the new formula. formula.
•All districts will receive at least a 2% increase in state All districts will receive at least a 2% increase in state aid in the first year. aid in the first year.
•In later years, decreases in aid would occur if districts In later years, decreases in aid would occur if districts experience declines in overall enrollment or in experience declines in overall enrollment or in enrollment categories. enrollment categories.
Aid will be distributed through a foundation formula. Calculations are based on a per-pupil adequacy budget, which represents what each district should be spending to allow each student to attain New Jersey’s educational standards.
The base amount is set for elementary school students and is increased for middle school students, high school students and vocational school students because it grows more expensive to meet students’ needs as they progress through school.
Additional weights are added to the basic formula for at-risk students (those eligible for free or reduced lunch), students with limited English proficiency (LEP) and special education students. A combination weight is calculated for students who are both at-risk and LEP.
Equalization Aid = Adequacy Budget - Local Fair Share
Summary of Base Level Funding Amounts
Elementary Middle School High School
Base Amount $9,649 $10,035 $11,289
At-Risk $14,184-$15,149 $14,751-$15,755 $16,595-$17,724
LEP $14,474 $15,052 $16,934
At-Risk/LEP $15,390-$16,355 $16,006-$17,009 $18,006-$19,135
Spec. Ed. $20,546 $20,932 $22,186
Speech $10,731 $11,117 $12,371
Voc. Ed. n/a n/a $14,789
Base CostBase Cost
Base Cost CalculatedBase Cost Calculated SalariesSalaries Benefits (current spending not 20% to Benefits (current spending not 20% to
differentiated between certified & non- differentiated between certified & non- certified staff) certified staff)
Capital Improvements Capital Improvements ($175/student) ($175/student)
Professional DevelopmentProfessional Development Utilities (NJ’s Consumer Price Index)Utilities (NJ’s Consumer Price Index)
0.94240.9613
0.8818
0.9463
0.9189
0.9189
0.8762
0.9452
1.0087 1.0170
1.01701.0156
1.02981.0608
0.9467
0.8966
1.0633
1.0312
0.9987
1.03931.0432
GeographicCost
Adjustment
(GCA)
Calculation to
compensate for
differences in wage markets
across the state
District Factor Groups (DFG)District Factor Groups (DFG)DGF FactorsDGF Factors
1.% of adults with no high school diploma
2.% of adults with some college education
3. Occupational status4. Unemployment rate5. % of individuals in poverty6. Median family income
DFG’s are updated every 10 yearsDFG’s are updated every 10 years2004 was the last year; 2014 is next year2004 was the last year; 2014 is next year
State Aid/DFG CorrelationState Aid/DFG Correlation
• The Non-Abbott District Factor Group A districts, which The Non-Abbott District Factor Group A districts, which are the least affluent, will see on average a 10.3 are the least affluent, will see on average a 10.3 percent increase in state aid; percent increase in state aid;
• B districts will get on average a 9.1 percent increase in B districts will get on average a 9.1 percent increase in state aid; state aid;
• CD districts will see on average an 8 percent increase in CD districts will see on average an 8 percent increase in state aid; state aid;
• DE districts will see on average a 5.4 percent increase in DE districts will see on average a 5.4 percent increase in state aid; state aid;
• FG districts will get on average a 4.3 percent increase, FG districts will get on average a 4.3 percent increase, • GH districts will see on average a 4.1 percent increase; GH districts will see on average a 4.1 percent increase;
and and • I and J districts will see on average increases of 3.3 and I and J districts will see on average increases of 3.3 and
3 percent, respectively.3 percent, respectively.
www.enlightennj.blogspot.com/2006/10/new-funding-formula-for-new-jerseys
Bridgeton
Hamilton
Medford
The formula will benefit districts:
•who currently spend under adequacy.
•who cover more than their local fair share.
•who experienced increased enrollment
Tale of Three Schools:Impact of NJ’s Revised School
Funding Formula
DFG: I
DFG: CDDFG: Abbott
Hamilton Township ProfileHamilton Township Profile
PropertyProperty IncomeIncome
DistrictDistrict $597,588$597,588 $116,343$116,343
AverageAverage $977,893$977,893 $190,499$190,499
SummarySummary Below Below Property Property
ValueValue
Below Income Below Income AverageAverage
District Factor Group: CDDistrict Factor Group: CD
PropertyProperty +8%+8%
IncomeIncome +17%+17%
Hamilton TownshipHamilton Township
20% increase for Hamilton Township20% increase for Hamilton Township
1. $ 4 Million Dollars in extra money in 1. $ 4 Million Dollars in extra money in state aid state aid
2. This will allow the district to hire 2. This will allow the district to hire new teachers, install new new teachers, install new programs, and more money for programs, and more money for special education program special education program
Hamilton TownshipHamilton Township FY 08FY 08 TOTAL 07-08* $18,032,125TOTAL 07-08* $18,032,125 FY09FY09 EQUALIZATION AID $18,051,576EQUALIZATION AID $18,051,576 SPEC ED CAT** $1,570,650SPEC ED CAT** $1,570,650 EXORD*** $89,213EXORD*** $89,213 TRANSP $1,324,892TRANSP $1,324,892 SECURITY $602,219SECURITY $602,219 ADJUSTMENT AID $0ADJUSTMENT AID $0 TOTAL 08-09 $21,638,550TOTAL 08-09 $21,638,550 STATE AID DIFFERENCE: $ 3,606,425STATE AID DIFFERENCE: $ 3,606,425 % STATE AID GROWTH: 20.00%% STATE AID GROWTH: 20.00%
Hamilton TownshipHamilton Township Enrollment- 2000 (2,741)Enrollment- 2000 (2,741) Enrollment- 2007 (3062)Enrollment- 2007 (3062) Enrollment- 2008 (3114)Enrollment- 2008 (3114) ENROLL GROWTH (7 YRS): 11.7%ENROLL GROWTH (7 YRS): 11.7% % FREE and REDUCED PUPILS (2008) : 1,082% FREE and REDUCED PUPILS (2008) : 1,082 COMBINATION PUPILS (2008): 52COMBINATION PUPILS (2008): 52 LIMITED ENGLISH PUPILS (2008) : 27LIMITED ENGLISH PUPILS (2008) : 27 % FREE and REDUCED (2008) : 36.416185 %% FREE and REDUCED (2008) : 36.416185 % ENROLL GROWTH(7 Yrs)- (relative to state ENROLL GROWTH(7 Yrs)- (relative to state
average) 7%average) 7%
Hamilton TownshipHamilton Township
20% Increase in State Aid= 20% Increase in State Aid= $4,000,000$4,000,000
If not for the new formula, only 2-9% If not for the new formula, only 2-9% increaseincrease
Wouldn’t been able to hire new staff, Wouldn’t been able to hire new staff, new programs for student(s), and new programs for student(s), and less money for special educationless money for special education
Bridgeton ProfileBridgeton Profile
PropertyProperty IncomeIncome
DistrictDistrict $124,757$124,757 $43,956$43,956
AverageAverage $977,893$977,893 $190,499$190,499
SummarySummary Below Below Property Property
ValueValue
Below Income Below Income AverageAverage
District Factor Group: AbbottDistrict Factor Group: Abbott
PropertyProperty -36%-36%
IncomeIncome -22%-22%
Bridgeton Public SchoolsBridgeton Public Schools
Base • Elementary Students = 2315• Middle School Students = 980• High School Students = 1143
At-Risk• Elementary Students = 1459• Middle School Students = 685• High School Students = 918
Bridgeton Public SchoolsBridgeton Public Schools
LEP• Elementary Students = 51• Middle School Students = 18• High School Students = 0
Comb (At-risk & LEP)• Elementary Students = 478• Middle School Students = 83• High School Students = 0
Bridgeton Public SchoolsBridgeton Public Schools
Special Ed & Speech• Total Enrollment = 4438
Bridgeton Public SchoolsBridgeton Public Schools Base
• Elementary Students = 2315 * $9,649• Middle School Students = 980 * 1.04• High School Students = 1143 * 1.17• Total $45,075,400
At-Risk• Elementary Students = 1459 * $9,649• Middle School Students = 685 * 1.04• High School Students = 918 * 1.17• Times 0.57000 (AT-Risk Weight)• Total $17,849,803
Bridgeton Public SchoolsBridgeton Public Schools LEP
• Elementary Students = 51 * $9,649• Middle School Students = 18 * 1.04• High School Students = 0 * 0.5• Total $ 336,364
Comb (At-risk & LEP)• Elementary Students = 478 * $9,649• Middle School Students = 83 * 1.04• High School Students = 0 * 1.17• Times 0.570000 (At-Risk Weight) + 0.125• Total $3,784,361
Bridgeton Public SchoolsBridgeton Public Schools
Special Ed & Speech• Total Enrollment = 4438 * 14.69% *
$10,897.75 * .666667 * 0.8818 + Total Enrollment = 4438 * 1.897% * $1,081.61 * 0.8818
Total $4,256,913
Bridgeton Public SchoolsBridgeton Public Schools
Adequacy Budget + Security Aid + Special Education Categorical + Extraordinary Aid + Transportation
$63,378,012 + $1,571,013 +$2,088,308 + $0 + $522,558 = $67,559,891
Bridgeton Public SchoolsBridgeton Public Schools
Equalized Value * Property Value Rate + Aggregate Income * Income Rate * 50%
Total $7,000,813
Bridgeton Public SchoolsBridgeton Public Schools
Adequacy Budget Plus Categoricals – Local Fair Share
$67,559,891 – $7,000,813 = $60,700,078
Medford ProfileMedford Profile
PropertyProperty IncomeIncome
DistrictDistrict $793,502$793,502 $259,948$259,948
AverageAverage $977,893$977,893 $190,499$190,499
SummarySummary Below Below Property Property
ValueValue
Above Income Above Income AverageAverage
District Factor Group: IDistrict Factor Group: I
Property (7 years)Property (7 years) -14%-14%
Income (7 years)Income (7 years) -1%-1%
Medford Township SchoolsMedford Township Schools
EnrollmentEnrollment20002000
28372837
EnrollmentEnrollment20072007
30673067
Projected EnrollmentProjected Enrollment20082008
29592959
Enrollment Growth (7 years): 8.1%
Enrollment Growth (7 years) relative to state average: 4%
Medford Township SchoolsMedford Township Schools
Free & Reduced PupilsFree & Reduced Pupils 9696
Combination Pupils Combination Pupils (LEP & F/R Lunch)(LEP & F/R Lunch)
00
Limited English Limited English Students (LEP)Students (LEP)
44
% Free & Reduced % Free & Reduced Lunch Lunch
3.24%3.24%
Enrollment Growth (7 years): 8.1%
Enrollment Growth (7 years) relative to state average: 4%
Medford SchoolsMedford Schools
Equalization AidEqualization Aid
= Adequacy= Adequacy
Budget – LocalBudget – Local
Fair ShareFair Share
Adequacy Adequacy BudgetBudget
$31,374,502$31,374,502
Local Fair Local Fair ShareShare
$28,367,981$28,367,981
Equalization Equalization AidAid
$3,006,521$3,006,521
Medford TownshipMedford TownshipAdequacy BudgetAdequacy Budget - level needed to - level needed to
provide a high level of educationprovide a high level of education
Adequacy Budget = (Base Cost + At Risk Adequacy Budget = (Base Cost + At Risk Cost + LEP Cost + Comb Cost) x GCA + Cost + LEP Cost + Comb Cost) x GCA + (SPEC ED CENS + Speech)(SPEC ED CENS + Speech)
$28,958,579 + $440,986 + $19,298 + $0) $28,958,579 + $440,986 + $19,298 + $0) x 0.9613 + ($3,035,786 + $58,363) = x 0.9613 + ($3,035,786 + $58,363) = $31,374,502$31,374,502
GCA – Geographic Cost Adjustment (calculated by county) to compensate for varied wage markets across the state.
Medford Township SchoolsMedford Township Schools
AidAidCategoryCategory
Student Student EnrollmentEnrollment
AidAidAmountAmount
Base CostBase Cost 1904 1904 $28,958,579$28,958,579
At-Risk Cost At-Risk Cost 6565 $440,986$440,986
LEP CostLEP Cost 44 $19,298$19,298
COMP CostCOMP Cost 00 $0$0
SPEC ED/SpeechSPEC ED/Speech 29592959 $3,094,149$3,094,149
Total Adequacy Total Adequacy BudgetBudget
$31,374,502$31,374,502
Medford Township SchoolsMedford Township Schools
Adequacy BudgetAdequacy Budget $31,374,502$31,374,502
Security AidSecurity Aid $202,153$202,153
Spec Ed CategoricalSpec Ed Categorical $1,517,893$1,517,893
Extraordinary AidExtraordinary Aid $294,369$294,369
Transportation AidTransportation Aid $913,320$913,320
Adequacy Budget Adequacy Budget Plus CategoricalsPlus Categoricals
$34,302,237$34,302,237
Please Note: Just the Adequacy Budget Please Note: Just the Adequacy Budget is used to calculate Equalization Aidis used to calculate Equalization Aid
Medford TownshipMedford Township
Local Fair ShareLocal Fair Share – amount based on – amount based on income and property value in which income and property value in which the town is expected to contribute.the town is expected to contribute.
Local Fair Share = (EQ VAL x PROP Local Fair Share = (EQ VAL x PROP VAL RATE x 50%) + (Aggregate VAL RATE x 50%) + (Aggregate Income x Income Rate x 50%)Income x Income Rate x 50%)
Medford TownshipMedford Township
($2,347,971 x 0.0092690802 x .5) +($2,347,971 x 0.0092690802 x .5) +($769,185,297 x 0.04546684 x .5) ($769,185,297 x 0.04546684 x .5) = $= $28,367,98128,367,981 (Local Fair Share) (Local Fair Share)
Local Fair Share is relative to the wealth per pupil which includes a 7 year average of income and property value.
The higher the property and income levels the greater the local fair share
Medford Township SchoolsMedford Township SchoolsEqualization Aid = Adequacy Budget - Local Fair Share
$3,006,521$3,006,521 $31,374,502$31,374,502 $28,367,981$28,367,981== ––
Equalization Aid for Medford is contingent upon:
•Student Population (Adequacy Budget)
•Types of Students (Adequacy Budget)
•Wealth Per Pupil (Local Fair Share)
Equalization Aid is likely to vary for each school fiscal year
Tale of 3 Schools ComparisonTale of 3 Schools Comparison
Student Adequacy Local Fair Equalization AidDFG Enrollment Budget Share Aid Increase
Bridgeton Abbott 4438 63,378,012 7,000,813 56,077,099 2.75%Hamilton CD 3114 37,564,709 16,860,509 18,051,576 20% (cap)Medford I 2959 31,374,502 28,367,981 3,006,521 8.80%
Adequacy ComparisonAdequacy Comparison
COMB GCA SPEC TotalCost ED Speech Adequacy
3,784,361 0.8818 4,176,617 80,296 63,378,012323,060 0.9452 3,141,301 60,392 37,564,709
0 0.9613 3,035,786 58,363 31,374,502
Base At-Risk LEP COMB SPEC TotalCost Cost Cost Cost GCA ED Speech Adequacy
Bridgeton 45,075,400 17,849.80 336,364 3,784,361 0.8818 4,176,617 80,296 63,378,012Hamilton 30,484,761 5,416,045 131,419 323,060 0.9452 3,141,301 60,392 37,564,709Medford 28,958,579 440,986 19,298 0 0.9613 3,035,786 58,363 31,374,502
Tale of 2 CitiesTale of 2 Cities
What was is the 1What was is the 1stst line in Charles line in Charles Dickens, Dickens, Tale of Two CitiesTale of Two Cities??
““It was the best of times, it was the It was the best of times, it was the worst of times.”worst of times.”
Thanks!Thanks!