Newark NJ -- October 20, 2006

The NJ Department of Education has released district-by-district education cost figures prepared by DOE staff over two years ago. The data purports to compare districts’ actual spending in 2004-05 with an education "adequacy" budget developed by DOE staff, with help from John Augenblick, a Denver-based consultant.

It is unclear how, or even if, these figures will be used to develop a State school funding formula to replace the 1997 formula declared unconstitutional by the NJ Supreme Court in the landmark Abbott v. Burke case.

The budget figures appear to reflect the amount DOE considers adequate to educate all students under State academic standards. DOE claims it used two established education "costing-out" methods – "professional judgment" and "successful schools" -- to determine the adequacy amount.

In 2003, DOE began a study to determine education costs for a new funding formula, but it is unclear if the study was ever finished. DOE has steadfastly refused to make public documents related to its work, prompting ELC to file suit under the Open Public Records Act to obtain their release. On October 6th, Superior Court Judge Linda Feinberg ordered DOE to release the cost figures and several other documents.

The 2004-05 data show the total education cost statewide under the DOE adequacy budget would be $15.7 billion, an increase of $375 million or 2.4% over actual spending. The data also show:

● Suburban districts classified by DOE as affluent and educationally successful – called District Factor Groups (DFG) "I&J" – were spending $166 million, or 5.3%, in excess of the DOE adequacy budget;

● Poor urban or "Abbott" districts – those under the Abbott v. Burke mandates for education reform -- were spending almost the same as the adequacy budget;

● Other Districts classified by DOE as low, moderate and middle income – DFGs "A" thru "H" – were spending below the adequacy budget on average, with a handful spending about half of the budget.

In a July 2006 news story, former Assistant DOE Commissioner Richard Rosenberg, who led the 2003 study, estimated that as much as $800 million in additional current spending would be needed to provide adequate funding for all students statewide, exclusive of early childhood education.

"While we now have what purports to be adequacy cost totals, we still have no clue how DOE came up with these numbers," said ELC Executive Director David Sciarra. "The budget figures are not credible unless and until DOE provides all of the data and assumptions to support them, especially the costs used for salaries and other inputs."

Mr. Sciarra also announced ELC has asked Judge Feinberg to appoint a Special Master to find critical documents, and quickly go through additional material related to the 2003 study. Last week, the Attorney General notified Judge Feinberg and ELC that certain documents are missing or couldn’t be found, and that some DOE data files are "corrupted." The Attorney General also told the court that DOE has now "found" some 3,000 pages of additional study documents.

In a letter to Judge Feinberg, ELC co-counsel Koren Bell – of the Paul Weiss law firm – described the latest revelations of missing, lost and suddenly-discovered documents as "alarming," and as raising "serious questions about the integrity of the State’s entire process".

The Joint Legislative Committee on School Funding Reform announced that Education Commissioner Lucille Davy and Mr. Augenblick will testify on "efforts to determine a per pupil cost of education" on Tuesday, October 24th at 1:00 pm in Room 11, 4th floor of the State House in Trenton. ELC urges all those concerned about providing quality education to our public school children to attend the hearing. For more information, go to http://www.njleg.state.nj.us.

For more information on school funding, contact ELC Senior Attorney Elizabeth Athos below.

Related Information:

DOE 2004-05 Adequacy Budget – State Summaries, by District Factor Groups, and for Abbott Districts

NJDOE Refuses to Relase Education Cost Study (July 18, 2006)

Advocates Sue for Release of Cost Study, The Star Ledger, July 17, 2006