ELC Letterhead
NEWS RELEASE
HIGH DEGREE OF EQUITY IN NJ SCHOOLS, SPENDING DATA SHOW
WILL A NEW FUNDING FORMULA SUSTAIN OR REVERSE PROGRESS?

Newark, NJ -- March 26, 2007

New Jersey school districts are spending an average of $12,000 per-pupil, according to data from the 2007 Comparative Spending Guide. The data also show most school district groups, from the wealthiest to the poorest, spend remarkably close to the statewide average per student, showing a high degree of equity in school spending across the state.

"This year's Spending Guide again confirms New Jersey's status as a national leader in education equity," said David Sciarra, ELC Executive Director. "We've made solid gains in narrowing the wide disparities that plagued our public schools for decades. It is essential that any new school funding formula sustain, and not reverse, this progress."

The Comparative Spending Guide is an annual compilation of general data on what schools spend prepared by the NJ Department of Education. The NJDOE released the data on March 23rd.

ELC analyzed the spending data by district factor group (DFG), a ranking of districts by income, property wealth, and community and educational factors. The NJDOE groups districts from A to J, with A the poorest and J the wealthiest and most educationally successful. ELC also analyzed more commonly known categories: poorer urban or Abbott (DFG A-B districts), non-Abbott poor (DFG A-B districts), middle-income (DFG C-H districts) and wealthier suburban (DFG I-J districts). The analysis included the percent of low income students, and Black and Latino students in each group to gauge spending in schools serving high concentrations of poor and minority students.

The following table summarizes the analysis.

2007 Comparative Spending Guide 
Total Per Pupil Spending by District Grouping
March 23, 2007
  2006 Total Spending Per Pupil Percent Eligible for
Free/Reduced
Price Lunch
Percent Students
of Color
    Mean     Minimum Maximum  
New Jersey $11,997 $7,426 $33,805 26.9% 43.5%
District Factor Groups  
$14,628 $9,527 $19,102 66.2% 87.9%
$12,302 $7,426 $33,805 49.4% 52.3%
CD  $10,488 $8,543 $17,012 31.0% 39.4%
DE  $10,484 $8,079 $16,663 18.0% 24.5%
FG  $11,051 $8,898 $29,982 12.6% 17.0%
GH  $11,903 $8,286 $19,816 9.5% 17.8%
$11,830 $8,754 $21,534 4.0% 9.8%
$12,156 $10,071 $18,110 1.7% 5.1%
Non-Abbott Districts $11,257 $7,426 $33,805 22.6% 30.3%
Abbott Districts $14,796 $11,317 $19,363 65.5% 84.6%
Non-Abbott Poor Districts $11,024 $7,426 $33,805 44.4% 47.2%
Middle-Income Districts $11,009 $8,079 $29,982 16.2% 22.9%
Wealthier Suburban Districts $11,889 $8,754 $21,534 3.6% 9.0%
SOURCE | New Jersey Department of Education, 2007 Comparative Spending Guide; Enrollment demographics from 2005-06 Fall Survey.

The ELC analysis reveals several important trends, including:

  • The most educationally successful districts - the wealthier suburban districts -- spend almost $12,000 per student, even though a very small fraction of their students are poor (3.6%) or Black and Latino (9%).
  • Abbott districts by far serve the most poor students (65.5%) and Black and Latino students (87%), and spend more than any group at $14,700 per pupil, indicating a high degree of equity. Unlike other districts, Abbott school spending is affected by Court-mandated programs, such as full-day kindergarten and early literacy, to address the intense concentration of poor and minority students. Abbott districts are also under Court order to provide high quality preschool to thousands of 3 and 4 year olds, which adds to their overall spending level.
  • Other poor (non-Abbott) districts spend $11,000 per student, even though their poverty rates and the percent of students of color exceed 40%. Governor Jon Corzine has proposed giving more at-risk aid to these districts, which should help advance equity among this small, but overlooked group.
  • Middle-income districts also spend $11,000 per pupil, 9% less than the wealthier suburban districts, even though they serve more low income students, ranging from 9% (G-H districts) to 31% (C-D districts).
  • Every district group has a handful of districts that spend at the extremes - very high or very low. NJDOE offers no analysis to explain spending in these "outlier" districts, but equity is even greater when they are removed from the analysis.

The data also confirm the landmark Abbott v. Burke rulings are having their intended effect: directing increased state aid to the Abbott districts where New Jersey's low income and minority students are most heavily concentrated. The Abbott aid increases have reduced overall spending inequities, but those increases need to be expanded, especially to non-Abbott districts with student poverty rates of 20% or more. Abbott has been hailed as the most important equity court decision since Brown v. Board of Education.

It is also important to recognize that, while adequate and equitable resources are essential, more is necessary to provide a high quality education. Curriculum and instruction, leadership, supports for students and staff, and engaged parents and communities are among the factors critical to educational success.

"This spending data dispels the myth of widespread inequity in financing our public schools," Mr. Sciarra said. "We still have gaps to close, especially in districts serving growing numbers of poor students. Our task going forward is threefold: to support and deepen educational success in suburban and middle income districts; to strengthen the Abbott programs and funding in high poverty, high minority urban districts; and to expand Abbott to the other high needs schools in our state."

Mr. Sciarra noted that a study by the NJDOE released in December 2006 set a base cost of $8,500 per student, far below the spending levels of all districts. "The Spending Guide data is more proof that the Department's education cost study is seriously flawed, outdated and inadequate, and should not be used in any new school funding formula," Mr. Sciarra said. "We've worked tirelessly to get this far, and we must redouble our efforts to make certain any new funding formula advances, and not reverses, New Jersey's historic progress toward equitable school funding. We cannot rest until every student receives the education they deserve and are entitled to."

Education Law Center Press Contact:
David G. Sciarra
Executive Director
email: dsciarra@edlawcenter.org
voice: 973 624-1815 x16