Education Funding

Debate Continues on Funding Formula

By Catherine Gewertz — December 19, 2006 2 min read
  • Save to favorites
  • Print

The following offers highlights of the recent legislative sessions. Precollegiate enrollment figures are based on fall 2005 data reported by state officials for public elementary and secondary schools. The figures for precollegiate education spending do not include federal flow-through funds unless noted.

New Jersey

It was a special session of the New Jersey legislature that produced the most significant education-related developments of the year. By year’s end, most of those ideas remained at the proposal stage, and were only beginning to be drafted into legislation.

Gov. Jon S. Corzone

Democrat

Senate:
22 Democrats
18 Republicans


House:
49 Democrats
31 Republicans

Enrollment:
1.4 million

When it ended in November, the three-month-long session unveiled 98 recommendations designed to reduce the highest property taxes in the country.

The ones that pertain to school funding, which depends heavily on those taxes, centered on trying to forge a unified way of paying for schools in the Garden State. Lawmakers on the public school funding reform committee proposed a formula that would establish a base amount for each student and adjust for needs such as poverty. That approach would eliminate the designation that has funneled extra money to the poorest urban districts under the finance lawsuit known as Abbott v. Burke. (“N.J. Panel Eyes Changes in School Funding,” Nov. 29, 2006.)

Many of the recommendations—such as the need to ascertain how much spending is necessary to provide a sufficient education in New Jersey, and the need to control spiraling pension costs—were expected to produce rounds of complex calculations and heated debate when the legislative session resumes next month.

The $30.8 billion fiscal 2007 budget signed by Gov. Jon S. Corzine, a Democrat, included millions of dollars worth of reductions, new fees, and taxes to manage a large shortfall. But the cuts were not made in education.

The $10.4 billion allotted for precollegiate education for 2007 was a significant increase above fiscal 2006’s $9.4 billion, but most of that increase went to boost pension-fund contributions, according to state budget officials. That left school districts essentially with flat funding this fiscal year, as they have been in each of the past few years.

The legislature passed, and the governor signed, a measure designed to prevent financial problems in school districts. It outlines key signs that would indicate early fiscal difficulty and empowers the state commissioner of education to appoint a monitor to oversee districts showing two or more of those signs.

A version of this article appeared in the December 20, 2006 edition of Education Week

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
School & District Management Webinar
The Principal's Role in Collective Efficacy and Student Outcomes
Learn practical strategies that help principals translate their confidence into stronger collective teacher efficacy and student outcomes.
Content provided by Otus
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
Education Funding Webinar
What Schools Need to Know About the Federal Education Freedom Tax Credit
What schools need to know about the federal Education Freedom Tax Credit: A practical guide from a licensed teacher and policy expert.
Content provided by LearningSpring
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 Climate & Safety Webinar
Building Your School Safety Roadmap: Key Priorities for the Upcoming Year
What should be on your school's safety roadmap this year? Join experts to discuss priorities, preparedness, and best practices.
Content provided by Evolv Technology & IdentiSys

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 Federal Tax Credits for K-12 Scholarships: What We Know (and Don't)
The Trump administration is preparing to issue rules for its new, ambitious school choice program.
11 min read
Secretary of Education Linda McMahon, center, arrives for a news conference about President Donald Trump s Education Freedom Tax Credit on March 27, 2026 at Hamtramck Academy in Hamtramck, Mich.
Secretary of Education Linda McMahon, center, arrives for a news conference about President Donald Trump's tax-credit scholarship program on March 27, 2026 at Hamtramck Academy in Hamtramck, Mich., where she urged Michigan Gov. Gretchen Whitmer to opt her state in. The Trump administration, through the Department of the Treasury, is expected to release regulations for the program in the coming days. Several governors have said they're awaiting those regulations before deciding whether their states participate.
Katy Kildee/The Detroit News via TNS
Education Funding Trump's Education Funding Maneuvers Were Illegal, Judges Rule
Judges ruled in suits about teacher-training grant cancellations and withheld education research money.
4 min read
Collage of Trump signing an executive order, money, desks, torn paper, legal pad.
Collage by Laura Baker/Education Week with Getty + Evan Vucci/AP
Education Funding What 'Returning Ed. to the States' Looks Like as the Ed. Dept. Awards Grants
State leaders face requests for letters of endorsement from grant applicants under new priorities.
TahSoGhay Collah, right, teaches a third-grade English learners class at the 700-student intermediate school that serves grades 3 through 5, in Worthington, Minn., on Oct. 22, 2024.
TahSoGhay Collah, right, teaches a 3rd grade English learners class in Worthington, Minn., on Oct. 22, 2024. Researchers seeking federal grant funding to train more teachers to work with English learners requested letters of support from state leaders to submit competitive applications this year.
Jessie Wardarski/AP
Education Funding Ed. Dept. Risks Letting $180 Million for Research Expire as Deadline Looms
Spending by the agency's research arm has lagged most significantly compared with previous years.
6 min read
Russell Vought, Director of the Office of Management and Budget (OMB) testifies on the OMB budget during a House Appropriations Financial Services and General Government Subcommittee hearing on Capitol Hill in Washington, DC, on June 4, 2025.
Russell Vought, director of the White House Office of Management and Budget, testifies during a House Appropriations subcommittee hearing on Capitol Hill in Washington on June 4, 2025. OMB has been slow to release congressionally appropriated funding to the Institute of Education Sciences, the U.S. Department of Education's research arm. IES now has just weeks to spend $180 million before it expires.
SAUL LOEB / AFP via Getty Images