Budget Guide

What will Gov. Murphy’s budget mean for Newark schools? Here’s what you need to know.

PHOTO: Phil Murphy for Governor
Gov. Phil Murphy, shown here in a photo from 2014, will release his first-ever budget plan on Tuesday.

Gov. Phil Murphy campaigned on a pledge to ramp up education spending, and Newark school leaders are watching closely to see if he’ll keep that promise – or if they might have to slash their budgets.

Murphy is set to unveil his first-ever budget plan Tuesday. While districts will not get detailed aid figures for a few more days, Murphy’s budget proposal should give them a sense of how much of a boost — if any — to expect.

Expectations are high in Newark, where flat state funding and rapid charter school growth has left district officials scrambling to plug gaping budget holes. They’re hoping Murphy will give them some portion of the $140 million in additional aid that the city is owed under state law.

“This budget season is very, very important for us,” Interim Superintendent Robert Gregory told Chalkbeat earlier this year.

To help you understand what’s at stake for the city’s schools, Chalkbeat Newark created a state budget guide. It explains how school funding is set and what that means for Newark’s district and charter schools, whose financial fate is controlled by politicians in Trenton.

How are New Jersey schools funded?

New Jersey schools are funded according to a formula that was adopted in 2008 and has been touted as a national model for distributing school aid according to need.

The formula calculates two things: How much money each district needs to adequately educate its students (its “adequacy budget”), and what portion of the budget should be paid by the district (its “fair share”). The budget amount is determined by how many students a district enrolls, with extra money allocated for each student who is poor, still learning English, or has a disability. The share each district must chip in is based on its wealth and taxing capacity.

That’s how things are supposed to work, anyway.

Due to budget cuts that followed the Great Recession, the formula has not been properly enacted since 2009. Today, about 31 percent of the state’s nearly 600 school districts receive less school aid than the formula says they’re owed, according to the Education Law Center. To fully fund the formula, the state would need to boost its school spending by nearly $1 billion.

What might change this year?

If the governor keeps his promise, schools will get a lot more money.

On the campaign trail, Murphy, a Democrat, vowed to fully fund the school-aid formula “immediately.” However, he recently appeared to waver on that timeline — and few observers consider it realistic.

Still, any serious funding boost will be costly. To raise the additional revenue, Murphy has proposed hiking income taxes on households making more than $1 million, among other measures.

But Murphy’s “millionaire’s tax” has become a harder sell following the Republican federal tax overhaul, which capped the amount people can deduct on their taxes. Last week, the state’s top Democratic lawmaker, Senate President Stephen Sweeney, unveiled an alternative proposal: a tax on corporations earning more than $1 million in net annual income. Either plan would generate more than $600 million in new revenue for the state — though it remains to be seen how much of that would go toward education.

While Murphy and lawmakers have until June 30 to hash out the state budget, districts are on the hook to set their own preliminary budgets by the end of March. That means they must rely on Murphy’s spending plan for now, then make adjustments once a final compromise is reached.

“It’s totally crazy,” said Danielle Farrie, the Education Law Center’s research director.

What will the budget mean for Newark Public Schools?

Newark’s limited tax base leaves it at the mercy of the state, which provides about 80 percent of its school funding.

This school year, the state sent Newark about $750 million — about $140 million less than what it’s entitled to under the school-funding formula. Gregory told Chalkbeat in January that if the district gets even a fraction of what it’s owed, “we’ll be in a better place.”

The Newark school system has faced whopping budget gaps in recent years. Two factors have driven the deficits: the rapid growth of charter schools and flat state funding.

Because charter school funding comes out of district budgets, Newark spending on charters has soared as those schools enroll ever more students. This school year, the district will transfer about $237 million — or a quarter of its budget — to charter schools, up from $60 million in the 2008-09 school year.

Meanwhile, state aid to Newark has not kept up with its rising expenses. The result is that the district’s per-pupil spending shrank by nearly $2,000 from 2008-09 to 2016-17, according to an Education Law Center analysis that adjusted for inflation. (The state boosted Newark’s budget each of the past two years.)

To balance the budget, Newark officials have had to sell off school buildings, switch employee insurance providers, and raise local taxes, among other measures. The district has mostly avoided cutting school budgets — though it did recently shift some funds from high schools to elementary schools. But if state funding is flat this year, officials worry they will be left with few other options.

“The last place to go is in school buildings,” Gregory said. However, “if we face flat funding again, that could lead to an immediate impact on students.”

What about Newark’s charter schools?

Today, about one third of Newark’s public-school students — or roughly 16,000 children — attend charter schools.

About 90 percent of the district’s local and state funding for each of those students follows them to their charter schools — though charters are excluded from certain funding streams. Murphy has been more skeptical of charters than his predecessor. But advocates hope that his budget will, at the very least, not leave them with less money.

“We’re just generally looking for charters to be unharmed — for us not to go backwards,” said Nicole Cole, president and CEO of the New Jersey Charter Schools Association. “The families that we serve can’t afford for us to take a step backwards.”

Immigration fears

Chicago on Trump administration changes: ‘A sicker, poorer and less secure community’

PHOTO: Scott Olson/Getty Images
A scene from an August immigration rally in downtown Chicago. Mayor Rahm Emanuel submitted a public comment on the proposed public charge rule changes on Monday.

The possibility of tougher rules on immigration and citizenship has provoked “tremendous fear” and plummeting participation in publicly funded daycare programs and afterschool care, according to a federal memorandum the City of Chicago submitted Monday.

The Trump administration has proposed changes that would weigh participation in programs such as Medicaid, food stamps, or housing assistance when granting residency and citizenship.

The changes could be devastating, the Chicago memorandum warns.

They could affect 110,000 Chicago residents, according to the filing. One in three Chicago residents receives Medicaid benefits, which the proposed changes would affect.

Chicago and New York led a coalition of 30 cities that filed comments to the Department of Homeland Security over changes to the so-called “public charge” rule, which is used by immigration officials to decide who is allowed entry and permanent residency in the United States.

“History teaches that, given this choice, many immigrants will choose to forgo public aid, which will make them a sicker, poorer, and less secure community,” according to the City of Chicago’s comments. You can read the entire document below.

Already, the city said, a group called Gads Hill that operates child care centers in Pilsen and North Lawndale has struggled to enroll children because of families’ worries about the impending rules.

Another operator, Shining Star Youth and Community Services in South Chicago, saw families start to keep children home since the proposed changes were announced.

The Boys & Girls Clubs of Chicago told the city that participation in its after-school programming also has taken a hit, the filing said.

The changes to the proposed rule do not specifically mention Head Start or any of the publicly funded child care programs. But many families are fearful that participation in anything offered by the government — from child care to health care to even food programs — would bring them to the attention of immigration authorities.

Early childhood advocates shared similar concerns at a November meeting of the Early Learning Council, an influential group of policymakers who help set the state agenda for children ages birth to 5.

“Families are very confused about the changes,” Rocio Velazquez-Kato, an immigration policy analyst with the Latino Policy Forum, told the group. “They think that by enrolling in Head start or free and reduced-price lunch at school — that it will factor against them.”

Public comment on the proposed rule change was due Monday. The 60-day public comment period is required by law before the federal government delivers a final recommendation.



on the move

Lack of transportation, conflicting deadlines put school choice out of reach for some, study finds

PHOTO: Denver Post file
Fourth-graders Kintan Surghani, left, and Rachel Anderson laugh out the school bus window at Mitchell Elementary School in Golden.

More Colorado students use school choice to opt into traditional district-run schools than use it to attend charter schools. Those who do so are more likely to be white and middle- or upper-class than their peers. And transportation continues to be a barrier for students who want to go somewhere other than their neighborhood school.

Those are the findings of a report on choice and open enrollment in the traditional public school sector put out by Ready Colorado, a conservative education reform advocacy group that supports greater access to school choice.

The report, “Open Doors, Open Districts,” looked at the roughly 49,800 Colorado students who attended school in a district other than the one in which they resided during the 2016-17 school year and another 95,600 who used school choice within the 12 largest districts in the state. Together, these 145,400 students make up roughly 16 percent of all Colorado students. Another 13 percent of state students attend charter schools.

Since 1990, the School Choice Act has allowed students to enroll in any public school they want, without paying tuition, provided there is room — and that the school provides the services that student needs, a sticking point for many students who require special education services.

The number of students using this system to attend school in another district increased 58 percent over 10 years to 49,800 in 2016. Roughly 6,000 of those students attend multi-district online schools.

The students taking advantage of inter-district open enrollment are more likely to be white than Colorado students as a whole — 58 percent are white compared with 54 percent of all students. They’re also less likely to come from low-income families (36 percent, compared with 42 percent of all students), to speak a language other than English at home (8 percent compared with 14 percent statewide), or to have a disability (8 percent compared with 11 percent).

“It is important to understand these differences so that policy leaders and educators can work to ensure that open enrollment opportunities are more accessible for all Colorado families,” the report said. “The underrepresentation of Hispanic/Latino students and English learners suggests there may be some unmet needs in Spanish-speaking communities around inter-district choice — either in information, accessibility, or appropriate services for students.”

The report highlights two major barriers to more students using school choice.

Most districts don’t have the kind of common enrollment system that Denver pioneered or that Jeffco is rolling out each year. Most districts require parents to turn in paperwork at a particular school. Not only do districts not share the same deadlines as each other, often different schools in the same district have different deadlines.

The other is transportation. 

“Time spent driving students to school can conflict with work schedules for parents, and public transit options can be scarce in many areas, making open enrollment functionally impossible for families without a transportation solution,” the report said. In one rural district, a group of parents banded together and hired their own school bus to take students to another district.

A bill sponsored last year by state Sen. Owen Hill, a Colorado Springs Republican, would have addressed both issues, encouraging the creation of more consistent deadlines across the state and allowing districts to cross boundaries to provide transportation. That bill was defeated in the Democratic-controlled House after some school districts said it would set the stage for larger, wealthier districts to poach students.

The transportation provision was later added to an unrelated bill in the final days of the session, a move that led to a lawsuit in which a judicial decision is pending.

Democrats now control both chambers of the Colorado General Assembly, and it’s not clear how any attempts to expand school choice would fare. Both school choice and charter schools have enjoyed bipartisan but not universal support in Colorado.

By highlighting the prominence of traditional public schools in how Colorado students use the choice system, advocates hope to separate choice and the popular idea that parents should be able to find the school that best meets their child’s needs from the more divisive debate about charter schools, which critics see as siphoning scarce dollars from other schools while not serving all students.

The report recommends developing more consistency between and within districts, providing more information to parents, and removing barriers to transportation.

Districts with higher ratings, which are determined primarily by results on standardized tests, tend to get more students than those with lower ratings, but some districts, particularly in the Denver metro area, send and receive large numbers of students, reflecting that parents and students are making decisions at the school rather than at the district level.

Metro area districts that have struggled to raise student achievement are losing large numbers of students to other districts. A quarter of students who live in Adams 14, whose low test scores prompted a state order for external management, attended school in neighboring districts in 2016. In Westminster, which just came off a state watchlist for low-performing schools this year, that number was 29 percent.

Ready Colorado found no clear relationship between districts that spent more per student and districts that attracted more students — but districts with higher enrollment get more money from the state for each student, creating incentives to compete for students.

Read the full report here.