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.”

baby steps

Efforts to integrate schools in one corner of New York City show promising signs, according to new data

PHOTO: Christina Veiga
P.S. 15 Roberto Clemente is one of the District 1 schools that met enrollment targets under a new diversity plan.

A school integration plan launched in Manhattan’s District 1 showed early signs of progress, according to data released Thursday by the education department.

Seven of the district’s 16 elementary schools met their targets for offering a more diverse group of students admission. If families accept those offers, it would mean three more of the district’s schools fall within the city’s goals than before the plan was implemented.

More progress was made when it comes to offering admission to a similar share of students with disabilities across all schools. All but one school — East Village Community School — met their goals.

The goal is for all elementary schools to enroll a share of needy students — those who are homeless, living in poverty, or still learning English — that is close to District 1’s average of 67 percent. Before the integration plan was implemented, only four elementary schools in the district fell within that range.

The district also wants schools to admit a similar proportion of students who have special needs: between 9 and 29 percent.

But large disparities remain among schools. At the Neighborhood School, only 38 percent of offers went to needy students, compared with 81 percent of offers at Franklin D. Roosevelt. East Village Community school only offered 7 percent of seats to students with disabilities. At the STAR Academy, it was 25 percent.

“There was no belief that, in one year, this was going to transform everything,” said Matt Gonzales, who supports school integration work through the nonprofit New York Appleseed. “So it sounds like there’s been some shifts and that’s a really positive development.”

District 1 is the first place where the city is trying to integrate elementary schools across an entire district. The stakes for the trial are high: Encompassing the Lower East Side, East Village and a sliver of Chinatown, the district is widely seen as a potential model for other integration plans that are in the planning stages.

The numbers released Thursday only reflect admissions offers made. Parents still have to accept them. But they could also decide to send their children elsewhere, meaning the student enrollment could ultimately be different.

“If this was enrollment, I would be high-fiving everyone,” said Naomi Peña, the president of the local Community Education Council who has been an outspoken advocate for the district’s integration plans. “I think the real meat and potatoes is the actual registration.”

Districts across the city, including District 15 in Brooklyn, are developing their own proposals to spur more school diversity. So far, District 1 — a small, diverse neighborhood where all of the elementary schools are unzoned — is the only place where the city has moved forward after years of advocacy from parents.

Under the new admissions model, needy students receive priority for a portion of seats in the incoming kindergarten and pre-K classes at every school. It is coupled with an on-the-ground effort to make schools more welcoming to families of all backgrounds, and encourage parents to consider schools they may have shunned in the past. That work has been seen as crucial to making the plan work, since parents still have to choose where to send their children.

Another test of the model will come later this spring, when offers for pre-Kindergarten admissions go out.

The education department says progress is being made in other elementary schools across the city that have pursued their own integration efforts through the Diversity in Admissions program. Most of the dozen schools in that program met their targets for the upcoming year, according to data released by the education department.

Similar to the efforts in District 1, schools that opt-into the program reserve a portion of their open seats for needy students. Except the Diversity in Admissions program is school-by-school, instead of district-wide, and participating schools set their own enrollment goals. Some aim to admit more students who are in the child welfare system or have incarcerated parents, with targets ranging from 20 percent of students, to 75 percent.

I am excited to build on the progress we’ve made,” the outgoing schools Chancellor, Carmen Fariña, said in a statement.


Impressed by Memphis students planning April walkout, Hopson gives his blessing

PHOTO: Shelby County Schools
Superintendent Dorsey Hopson meets with student leaders from Shelby County Schools and other Memphis-area schools to discuss their planned walkout on April 20 to protest gun violence in the wake of this year's shooting rampage at a Florida high school.

Superintendent Dorsey Hopson said Thursday that students who walk out of Memphis schools next month to protest gun violence will not be punished.

He also invited student organizers of the April 20 demonstration to speak April 24 to the Board of Education for Shelby County Schools “so our community can hear from these wonderful, thoughtful students.”

Hopson met Wednesday with about a dozen student leaders from district high schools, including White Station, Ridgeway, Central, and Whitehaven and Freedom Preparatory Academy.

“Based on this incredible presentation, I have agreed to be supportive of the walkout, as long as it’s done in an orderly fashion and as long as we work some of the details out,” Hopson said after the meeting.

“No students will be suspended or expelled for taking part in this event. No teachers will be disciplined for being supportive of these students,” he said.

At least six Memphis-area high schools are planning student walkouts on the 19th anniversary of the Columbine High School shooting that killed 13 students and wounded 20 others in Littleton, Colorado.

Shelby County students did not participate in the March 14 nationwide walkout because Shelby County Schools and other local districts were on spring break. That walkout, which was held on the one-month anniversary of a shooting in Parkland, Florida, pushed for stricter gun laws and memorialized the 17 people killed at Marjory Stoneman Douglas High School.

The April 20 walkout is part of a related nationwide “day of action” that encourages school events focused on pushing policy changes to reduce gun violence.

Hopson’s declarations put to rest concerns that students might be punished for trying to exercise their First Amendment rights of free speech while the district also seeks to ensure school safety. Earlier this month, school districts in Arkansas, Georgia, Maryland, and New Jersey threatened students with unexcused absences, detention, and disciplinary action if they participated in the March 14 walkout.

Most of the student organizers in Memphis are involved in BRIDGES, a program that brings students together across racial and socio-economic divides to discuss civic issues.

Hopson called their walkout plan “one of the most amazing presentations I’ve ever seen.”

Many Memphis-area students also plan to participate Saturday in the related nationwide “March for Our Lives.” More details on the local march are available here.