Middle-Income Districts Laud Revised Aid Plan in N.J.

By Lonnie Harp

A $341-million technical change in New Jersey's $4.4-billion school finance system has triggered an entire reshuffling of state aid, casting moderate-wealth school districts as big winners and potentially shifting the balance of political and lobbying power on the eve of the legislature's expected debate this session over changes in the funding system.

The changes launched by Gov. James J. Florio late last month have won praise from middle-income districts that had become vocal critics of the Quality Education Act, the finance-reform law passed in 1990.

But the new plan, which could significantly reduce public pressure to alter the Q.E.A., has brought a questioning response from Republican lawmakers, who won strong majorities in both legislative chambers last fall in large part because of their strident opposition to the law and the tax...