Education Funding

N.J. State Board Backs Rewriting School Finance Formula

By Catherine Gewertz — January 10, 2006 3 min read
  • Save to favorites
  • Print

In a decision designed to spark a transformation of New Jersey’s school finance formula, the state board of education concluded last week that poor rural districts have been shortchanged in a state known nationally as a leader for providing billions of dollars in extra aid and programs to its poor urban districts.

The 11-0 decision by the New Jersey state board on Jan. 5 came in an 8-year-old bid by a group of small, rural districts to be classified as “special needs” districts like the 31 urban systems that get extra aid as a result of the long-running Abbott v. Burke court case there.

An administrative-law judge in 2002 found that five of the 17 districts should get the designation, but the commissioner of education in 2003 permitted only one to do so. Eight of the remaining districts appealed to the state board of education.

Read the decision in Bacon v. New Jersey, posted by the New Jersey Department of Education.

In its decision, the state panel went beyond the question of which districts should get special-needs status, saying the disparity in funding levels only illustrated the need for an entirely new approach. The state must fashion a funding system that is founded not just on giving districts enough money, but ensuring a quality education as guaranteed by the state constitution, the board said.

“We believe the time has come to re-examine our entire educational system and the premises upon which it rests,” the board said in its 72-page decision. “… We must take responsibility for redefining the meaning of a thorough and efficient education in educational rather than financial terms.”

The board directed acting Commissioner of Education Lucille E. Davy to develop by Feb. 1 a design for an assessment that would identify the “unique educational needs” of the 17 original plaintiff districts in the case, known as Bacon v. New Jersey. It also ordered her to report to the board by March 1 on the educational components necessary to a good education in the Garden State’s 600-plus districts.

New Jersey Department of Education officials declined to comment on the ruling. Either side may appeal the decision to the appellate division of superior court.

A New Approach?

Frederick A. Jacob, the lawyer who is representing the rural districts, welcomed the ruling. He said it marked the first case in the nation in which rural and older, struggling suburban districts have been recognized as needing special funding.

“The state board is really sending a message,” he said. “It’s impossible for districts as poor as ours to provide a thorough and efficient education without more state funding.”

Arnold Hyndman, the president of the state board, said the Bacon case provides the catalyst for a new effort to build a fair way of financing schools. Now it’s up to the commissioner and the legislature to follow through, he said.

“It’s time for us to go in a new direction, to stop functioning based on distinctions between urban, rural and suburban,” Mr. Hyndman said. “We need to define an education based on its essential components.”

David G. Sciarra, the lead lawyer in the Abbott case, who also filed friend-of-the-court briefs in Bacon, said the students in the rural districts deserve right away the kind of aid the Abbott districts get.

The delay of a needs assessment is unnecessary, he argued, because the New Jersey Supreme Court in Abbott already defined the key elements needed in poor districts: universal preschool, school construction money, and funding levels equal to the average spent in the state’s highest-wealth districts.

Mr. Sciarra said he would watch carefully to make sure the attempts at remedies in the rural districts did not undermine the help given to the urban districts.

Some middle-wealth districts in New Jersey are aggrieved that they get no state help as the state’s share of funding has decreased along with their tax bases. A statewide system of addressing such disparities is long overdue, said David H. Coates, a lawyer who represented a group of such districts in an unsuccessful attempt to equalize funding.

“In our kinds of districts, people are ticked,” he said.

Related Tags:

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
From Exposure to Experience: Designing Accessible Work-Based Learning
Learn how schools can create meaningful experiences that help every student build skills, connections, and a clearer path to their future.
Content provided by Project Lead The Way
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
A Tale of Two School Districts: Forecasting Enrollment
Forecasting enrollment is hard. Here’s how two different districts are navigating times of change with data that considers the whole picture.
Content provided by Zonda Education
Reading & Literacy K-12 Essentials Forum Strategies to Create a Culture of Reading in Schools
Join this free virtual event to learn how teachers and school district leaders ensure students are reading enough.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding School Funding Is on the Ballot Across the Country. Here's How
Voters will confront questions over how much money schools get and where their funding comes from.
1 min read
Collage of ballots and language from propositions from Arizona, Washington and Florida.
Illustration by Emily Wright for Education Week + Getty
Education Funding School Funding at the Heart of Massive Protests in France
Secondary students have called out dilapidated buildings, a lack of air conditioning, and inequities across schools.
4 min read
A police officer chases a protester during scuffles following a demonstration against under-resourced schools, in Paris, Tuesday, Oct. 6, 2026.
A police officer chases a protester during scuffles following a demonstration against under-resourced schools, in Paris, Tuesday, Oct. 6, 2026.
Teresa Suarez/AP
Education Funding Opinion An Expert Explains How the Federal Scholarship Tax Credit Will Work
A former Ed. Dept. official predicts the program will generate $3 billion for scholarships in 2027.
•
9 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
Education Funding Ed. Dept. Meets Research Spending Deadline—But Bigger Funding Challenges Loom
The Institute of Education Sciences finished spending more than $170 million set to expire Sept. 30.
3 min read
Director of the United States Office of Management and Budget Russell Vought walks down a staircase on Capitol Hill in Washington, Thursday, July 16, 2026.
Russell Vought, director of the White House Office of Management and Budget, walks down a staircase on Capitol Hill in Washington on July 16, 2026. The OMB withheld millions of dollars from the U.S. Department of Education's research arm for months, raising the possibility it wouldn't spend the money on education research and data collection in time for its Sept. 30, 2026, expiration.
Allison Robbert/AP