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.”

Deadlines

Chicago school applications are due midnight Friday. Here’s your last-minute cheat sheet.

PHOTO: Yana Kunichoff
At a fall open house, students at Benito Juarez Community Academy greeted visitors. As more students choose schools outside their neighborhood, schools have to work harder to impress families.

Families have until 11:59 pm Friday to apply to schools outside of their neighborhood through Chicago’s online portal, GoCPS.

On Thursday afternoon, wait times stretched nearly 10 minutes for callers to the Office of Access and Enrollment, which serves as a help-desk for GoCPS.

Families interested in options beyond their assigned neighborhood school must apply to attend magnet schools that draw students based on lottery, selective enrollment programs that require tests, and specialized programs such as dual-language or International Baccalaureate.

The application process is particularly fraught for students entering high school. Eighth-graders can choose from among 250 programs in nearly 150 high schools. Demand varies widely, with some schools receiving thousands of applications beyond what they can accommodate and others receiving too few.

While choosing a high school is serious business for students, their collective choices can become a do-or-die point for schools competing for a shrinking pool of students. The dozens of Chicago high schools labeled as under-enrolled risk falling into an unforgiving downward cycle. Schools losing enrollment also lose district revenue, which is doled out per student, and then they find it even more difficult to offer popular programs to appeal to applicants.  

Here’s some of our other coverage on the universal application system, which is now in its second year:

  • To see how many students applied to each high school last fall and compare it to the number of offers made this spring, click here.
  • To read how the race to impress students is leading high schools to behave more like small colleges, with swag bags, mariachi bands, and flashy brochures, click here.
  • To find our coverage of the first in-depth research report that evaluated the GoCPS system, click here. The system is mostly working as intended, according to an August report released by the University of Chicago Consortium of School Research and the Federal Reserve Bank of Chicago. The majority of high school students who used GoCPS ultimately got one of their top three choices. But the study also disclosed problems that the district now faces: There are too many empty seats in high schools.
  • To follow-along in the discussion about high-quality neighborhood options, read this story about a recent meeting at Kelly High School, which we covered here.
  • To learn more about a controversial school inventory report made public in August that shows that fewer than half of Chicago students attend their designated neighborhood school, click here.
  • To look up the latest round of SAT scores by school, click here. To find our database of high school graduation rates, click here. 

 

courtside

Lawsuit seeks to halt program designed to increase integration at New York City’s specialized high schools

PHOTO: Christina Veiga/Chalkbeat
Asian-American parents and community leaders gathered in Brooklyn on Thursday to learn about a lawsuit against part of the city's plan to integrate specialized high schools.

Mayor Bill de Blasio’s push to integrate the city’s specialized high schools now faces a legal challenge, which could potentially disrupt the current admissions cycle to the elite schools.

On Thursday, Asian-American parents and community organizations filed a lawsuit claiming the city’s diversity plans unfairly hurt their children’s chances of getting into a specialized high school, the Wall Street Journal first reported.

The suit targets the city’s planned expansion of the Discovery program, which offers admission to students who scored just below the cutoff on the exam that is the sole entrance criteria.

The law firm representing the plaintiffs has also asked for a preliminary injunction while the lawsuit is pending. The Pacific Legal Foundation, a non-profit firm with conservative, libertarian leanings, argues that “the challenged plan will impact imminent admission decisions — i.e. this admissions season.” If an injunction were granted it could unsettle an  admissions process already underway for the city’s current eighth graders, who took the test that determines admissions in October or early November.

The lawsuit arrives atop a  wave of anger from some in the city’s Asian-American community, whose children make up a disproportionate percentage of the enrollment at specialized high schools. Citywide Asian students represent 16 percent of the student population but comprise 62 percent of those at the sought-after subset of schools.

Currently, Discovery participants are mostly Asian: This year, those students made up 64 percent of those admitted to specialized schools through the program.

The city is planning a two-year expansion of Discovery to eventually account for 20 percent of seats at each specialized high school. Officials are also tweaking the program so that, in order to qualify, students must come from a middle school where at least 60 percent of students are economically needy. By doing so, the city estimates black and Hispanic enrollment in specialized high schools will increase from about 10 percent to about 16 percent. Citywide, those students comprise almost 70 percent of enrollment.

But the lawsuit argues the changes are discriminatory and would disproportionately shut out Asian students. It also claims the program’s expansion would make it more difficult to get into a specialized high school by limiting the number of seats available to students who aren’t in Discovery.

“We all have the American dream of equal opportunity,” Yi Fang Chen, a mother who is part of the suit, said in a press release. But she said the changes to Discovery are like “taking someone else’s dream away.”

An education department spokesman did not comment directly on the lawsuit, but said the city’s plans would “expand opportunity and raise the bar” at specialized high schools.

“Our schools are academically stronger when they reflect the diversity of our city,” spokesman Will Mantell wrote in an email.

At a community meeting in Brooklyn to discuss the suit, Asian parents were encouraged to keep up public pressure on the city to help build support for their cause.

“We’re just here to fight for our rights,” one father said. “We want to be heard.”