Funding Alert

OC/OS is urging the Governor to reconsider a proposal from the Education Law Center (ELC) to delay implementation of the new school funding formula until it is reviewed by the NJ Supreme Court. OC/OS is concerned that budget chaos and disruption of school programs could result if the Court finds the formula does not meet the standards for funding equity set forth in its landmark Abbott rulings.

In a March letter to the Governor, OC/OS also expresses support for the ELC proposal to have the new funding formula "remanded" or sent to a lower court for a full, factual hearing before the matter comes before the State Supreme Court.

ELC had presented both requests in a January 28 letter to the State Attorney General’s office. On February 5, the Attorney General’s office replied, noting that the State would not agree to defer implementation of the funding formula. Assistant Attorney General Robert J. Gilson also noted in his response to ELC that the State would not support a remand.

Mr. Gilson also reiterated the State’s decision to go before the Supreme Court in an effort to end the Abbott designation for poor, urban districts. In a mid-January letter to the Clerk of the Court, Attorney General Anne Milgram had contended that with the January 7 passage of the School Funding Reform Act (SFRA) there was no longer a need for the Abbott remedies.

In asking for a stay of the SFRA in Abbott districts for the upcoming budget year, ELC noted that without an order by the Supreme Court altering the Abbott remedies, the State continues to be legally compelled to comply with the constitutional rulings.

However, Mr. Gilson maintained in his letter that the law explicitly states that the new funding plan takes effect immediately and applies to the 2008-2009 school year, and therefore the State is "not in a position to disregard that law" with regard to the Abbott districts.

As for the proposal to remand the case to a lower court, Mr. Gilson wrote that, "the State does not believe that a remand is needed or advisable."

OC/OS disagrees with the State on both counts. The OC/OS letter to the Governor states that preparing budgets on the basis of a funding formula that may be overturned on constitutional grounds, "will produce significant disruption, inefficiency and waste in the budget process and will seriously undermine educational programs and planning."

With the State vowing to bring the new funding formula before the Supreme Court shortly, and with ELC poised to defend the Abbott designation before the Court, there is increased impetus to defer implementation of the formula in these districts. Despite the initial and not unexpected rejection of this recommendation by the State, OC/OS members hope that their letter will receive careful consideration by the Governor.