Education Law Center (ELC) is closely monitoring the Supreme Court's July 23rd order granting the State authority to maintain Abbott district budgets for a second year, i.e., to fund only the programs, positions and services "approved" in 2002-03. In defining "maintenance," the Court postponed funding any new programs based on demonstrated need until next year (2004-05). The Court also reaffirmed the State's authority under Abbott to eliminate any spending found to be "inefficient."

As required by the Court order, DOE issued letters on August 27th providing districts with a preliminary maintenance budget figure, and an estimate of the Abbott supplemental funding (Additional Abbott v. Burke Aid) required for that budget. DOE also identified inefficiencies based upon audits conducted by the State Treasurer.

Most districts appealed the DOE budget figures and funding estimates in hearings before Administrative Law Judges. The Law Judges issued initial decisions in all cases, and these decisions are now pending before Commissioner William Librera, who can either affirm, modify or reject them.

As summarized in the attached district-by-district summary and funding chart, our key findings on Abbott districts' 2003-04 budgets are:

• Foundation funding at "parity" with the suburban districts is maintained again this year at a per-pupil amount of $10,700. Each district is funded at this base or "foundational" amount to support K-12 standards-based education.
• The DOE initially estimated district need for additional Abbott funding, or "supplemental" funds, at $273 million. Districts have secured another $94.5 million in their administrative appeals, for a total of $367 million. Final awards must await the Commissioner's decisions, and any review by the appellate court.
• The FY04 State Budget is currently $192 million short of what is needed to fund Abbott district budgets at the maintenance level established in the July 23rd order.
• DOE identified no spending inefficiencies in most districts, and small amounts in others. Districts, especially Newark, successfully restored many of these inefficiencies on appeal.