New Jersey

state issues affecting P-12 funding

The New Jersey formula calculates an adequacy budget and determines how much a district can provide through taxes for a local fair share. The state then utilizes equalization aid to balance out the remaining difference. Consequently, Local Fair Share + Equalization Aid = Adequacy Budget. Categorical aid is provided based on seven categories: special education, security, transportation, preschool, debt service aid / benefit payments, and school choice aid.¹

funding priorities/trends for P-12

New Jersey state averages² on all operating types of expenditures for the last three years are detailed below:

• • Total legal services costs per pupil have decreased slightly: FY2016 = $47, FY2017 = $47, and FY2018 = $43

• • Budgetary per pupil costs have increased: FY2016 = $14,940, FY2017 = $15,258, and FY2018 = $15,955

• • Total classroom instruction has increased: FY2016 = $8,828, FY2017 = $8,999, and FY2018 = $9,447

• • Classroom salaries and benefits have increased slightly: FY2016 = $8,301, FY2017 = $8,464, and FY2018 = $8,840

• • General supplies and textbook costs for classroom instruction have slightly increased: FY2016 = $296, FY2017 = $288, and FY2018 = $321

• • Classroom purchased services have increased: FY2016 = $232, FY2017 = $246, and FY2018 = $286

• • Total support services have increased: FY2016 = $2,377, FY2017 = $2,437, and FY2018 = $2,577

• • Support services salaries and benefits have only slightly increased over the three-year period: FY2016 = $2,058, FY2017 = $2,098, and FY2018 = $2,196

• • Total administrative costs, on a per pupil basis, have slightly increased: FY2016 = $1,635, FY2017 = $1,679, and FY2018 = $1,726

• • Administrative salaries and benefits have basically held steady: FY2016 = $1,309, FY2017 = $1,344, and FY2018 = $1,385

• • Total operations and maintenance costs, on a per pupil basis, have slightly increased: FY2016 = $1,779, FY2017 = $1,812, and FY2018 = $1,895

• • Salaries and benefits for maintenance and operations have slightly increased: FY2016 = $898, FY2017 = $906, and FY2018 = $954

• • Food services has barely changed: FY2016 = $47, FY2017 = $47, and FY2018 = $48

• • Extracurricular costs have slightly increased: FY2016 = $289, FY2017 = $299, and FY2018 = $319

• • Benefits are becoming more expensive with time: FY2016 = 29% of total salaries, FY2017 = 30% of total salaries, and FY2018 = 32% of total salaries

• • Total equipment costs have actually declined: FY2016 = $85, FY2017 = $88, and FY2018 = $73

changes to funding formula for P-12

New Jersey ranks fourth among the states that generate the most revenue for public education. However, New Jersey does not rank among the top five states that have the largest populations or largest enrollments. In the 2019 state budget, the New Jersey legislature allotted an additional $25 million towards the school funding formula for the first time since before former governor Chris Christie took office. However, Senate Bill 2 cut state funding to 172 district, subsequently decreasing district adequacy budgets.³

Effect on school district

"New Jersey has among the most intensely economically and racially segregated public-school districts in the nation."⁴ Additionally, the New Jersey funding formula is dramatically underfunded. The current legislative agenda in the state of New Jersey has the following goals: Fully fund the formula, eliminate special education census funding, increase school construction financing, revise high school graduation testing policies, Fix the Lakewood School budget, and end state district takeover.⁵

Per-pupil Spending Amount: $20,849 for FY 2018