Thursday, October 19, 2017

Overaided Districts Regain $4.8 million and $6 million in Loans


There hasn't been much reporting on this, but the Christie Department of Education has just restored $4.8 million in Adjustment Aid to 23 overaided districts and made $6 million in ten-year loans (or "loans") to another three districts.

So far the only reporting I've seen on this was from Amanda Oglesby of the Asbury Park Press, who wrote an article about the restoration of state aid to five districts in the Asbury Park Press's coverage zone, (Marlboro, Toms River, Brick, Middletown, and Keansburg) on October 17th.

Five Jersey Shore school districts that faced hundreds of thousands of dollars in state aid cuts have learned that the money will be restored, according to the New Jersey Department of Education. 
The announcement came from the department this week that schools in Brick, Keansburg, Marlboro, Middletown and Toms River will receive thousands of dollars more in state support than had been promised last summer. 
Early last spring, each district balanced its budget on a state aid promise that would later prove ephemeral. State Democrats struck a deal over the summer that moved a portion of the districts' promised money to schools that were not receiving their fair share under the State Funding Reform Act.

After a query to Ms. Oglesby and the Department of Education I learned that there were other districts who either got all of their Adjustment Aid back or received a loan to be repaid over ten years out of future state aid. 

These are the districts who are having their Adjustment Aid restored.  


DistrictRestoration
Andover$47,195
Brick$720,507
Burlington City$149,493
Easthampton$56,982
Englewood$160,731
Frelinghuysen$12,367
Hopatcong Boro$227,978
Keansburg$517,808
Kittatinny Regional$121,727
Marlboro$233,031
Middletown$356,772
North Warren Regional$66,201
Stanhope$30,324
Stillwater$36,145
Toms River$1,366,845
Ventnor$42,081
Vernon Township$300,000
Wallkill Valley$94,904
Washington Township$52,765
Weymouth Township$47,472
White Twp$34,902
Wildwood City$104,221
TOTAL$4,780,451

Several of these districts are massively overaided.  Hopatcong's excess was going to be $5,888 per student even before the restoration.  Weymouth was going to be overaided by $9,463 per student.  Brick by $2,703 per student.  

The Department of Education letters do not go into any detail as to what the justifications were for the restorations.  The letters begin like this.  


Pursuant  to  the  provisions  of  P.L.  2017,  c.  99,  the  New  Jersey  Department  of  Education (Department) has performed a review of your district�s application for additional general fund state aid for fiscal year 2018.  Our review has been conducted in the form of a needs assessment; the purpose of which is to evaluate the merits of the district�s request for additional general fund state aid.  Your district�s 2017-18  general  fund  state  aid  was  originally  $2,373,620  and  had  been  reduced  by  $47,472  to $2,326,148. Your application requested $47,472 in additional general fund state aid.  Based upon our review and the recommendation of the Executive County Superintendent, your district�s application is approved for additional state assistance in the amount of $47,472.

Another three districts are getting loans, East Orange (+$3,130,330), Millville (+$811,983), and Vineland ($2,059,792). 

May 2018 Update: The loans were converted to grants in Phil Murphy's FY2019 budget.

I do not know why these districts got loans and not grants.  

Great Meadows's application was denied.  

Although the total new aid ($4.7 million) is a tiny percentage of NJ's deficit against Uncapped Aid ($2 billion without redistribution, $1.328 billion with redistribution), these restorations to the overaided strike me as deeply unfair.

Although it was difficult for overaided districts to make cuts in the summer of 2017, if NJ has new money to give out, it should still have gone into TPAF or, if it had to be spent on opex aid, to the most severely underaided districts such as Bound Brook, with its $9500 per student deficit, Manchester Regional, with its taxes in excess of 200% of Local Fair Share, and Atlantic City, whose tax base has just lost another $2 billion since state aid was calculated.

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See Also: 
Update:

Since this post appeared, there's been some more reporting on the state aid restorations.




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