Commissioner of Education David Hespe just visited Paterson where he participated in a public forum on the Paterson schools. At the forum Hespe was asked about Paterson being underaided by millions of dollars a year.
New Jersey education commissioner David Hespe during a visit to the city on Monday afternoon admitted the city’s school district is underfunded when a speaker at the historic Bethel AME Church asked him about the formula the state follows to fund local schools.
Hespe said the formula the state uses to fund districts is the School Funding Reform Act of 2008. “That law, if fully funded would provide additional resources to places like Paterson; however, in New Jersey we have a habit of not to fund our funding formula,” he said.
The funding formula was followed only half-dozen times since a modern formula was instituted in 1975, said the commissioner. “We probably fully funded the formula around five or six times. That’s not very good track record for 40 years.”
Hespe said the amount of money a district gets is determined by the governor and the legislature. “It’s been frozen now for four years,” he said of the funding. “If it was unfrozen I think additional resources would come to Paterson.”
Stan Matthews, a city business owner, asked the school funding formula question. “So we agree Paterson is underfunded?” asked Matthews.
“Absolutely if you look at the school funding formula — without a doubt,” responded Hespe.
The president of the Paterson Board of Education, Dr. Jonathan Hodges, has been pushing hard for Paterson to get more state aid, accusing the state of "illegally" underfunding Paterson.
City schools have been underfunded by $173.8 million over the past six years, according to the Education Law Center and the Paterson Education Fund. The school district faces a snowballing deficit of $186 million by 2019, according to an auditor report.
When a Paterson teacher informed the BOE that kids with special needs were not getting the help they needed Jonathan Hodges said:
“I imagine there is some truth to these assertions,” said Paterson Board of Education President Jonathan Hodges after reading Gould’s complaint. “It all seems to point to the shortage of personnel, which is a direct result of the illegal underfunding of the district by the state of New Jersey,”Unlike all other districts, Paterson succeeded in getting the legislature to give it an additional $19.7 million outside of SFRA for 2015-16, a move that was line-item vetoed by Chris Christie.
Here's where Paterson and Hespe are right and wrong.
Paterson's school budget problems are serious. Paterson is right that its schools are underaided. If SFRA were fully funded, Paterson would get another $68.6 million, the second biggest increase in New Jersey after Newark.
However, Paterson is the third largest district in New Jersey and it is the per pupil underaiding that counts. In per pupil terms Paterson's deficit is $2,488, a very large figure, but not even remotely the largest aid gap in New Jersey.
Paterson cannot see itself in isolation. Yes, Paterson is underaided, but there are scores of districts that are even more underaided.
The following are districts with gaps of more than $4000 per student. All have gaps which dwarf Paterson's.
| District | Aid Deficit per Pupil |
| MANCHESTER REGIONAL | -$10,737 |
| BOUND BROOK | -$9,780 |
| EAST NEWARK | -$8,906 |
| FAIRVIEW BORO | -$8,746 |
| FREEHOLD BORO | -$8,113 |
| GUTTENBERG TOWN | -$6,341 |
| MANVILLE BORO | -$6,211 |
| LODI | -$6,179 |
| NORTH PLAINFIELD | -$6,021 |
| HALEDON BORO | -$6,001 |
| ELMWOOD PARK | -$5,985 |
| WOODLYNNE | -$5,982 |
| PROSPECT PARK | -$5,896 |
| LINDENWALD | -$5,885 |
| RIDGEFIELD PARK (Bergen) | -$5,706 |
| DOVER TOWN | -$5,484 |
| BAYONNE | -$5,459 |
| DUNELLEN | -$5,429 |
| WHARTON | -$5,385 |
| KEARNY TOWN | -$5,282 |
| HI NELLA | -$5,263 |
| HAMMONTON (B_ | -$5,200 |
| BELLEVILLE | -$5,162 |
| CLAYTON (B) | -$5,027 |
| NORTH BRUNSWICK | -$4,755 |
| JAMESBURG | -$4,752 |
| RED BANK BORO | -$4,665 |
| CARTERET | -$4,591 |
| HACKENSACK CITY | -$4,574 |
| BLOOMFIELD | -$4,545 |
| ATLANTIC CITY | -$4,526 |
| LAUREL SPRINGS BORO | -$4,519 |
| RIVERSIDE TOWNSHIP | -$4,475 |
| NEWFIELD BORO | -$4,423 |
| LITTLE FERRY BORO | -$4,414 |
| CLIFTON | -$4,374 |
| WALLINGTON BORO (B) | -$4,326 |
| NETCONG BORO | -$4,258 |
| CHESTERFIELD TOWNSHIP | -$4,246 |
| PLAINFIELD CITY (A) | -$4,106 |
| NEWTON TOWN | -$4,101 |
| KINGSWAY REGIONAL | -$4,086 |
| STERLING HIGH SCHOOL DISTRICT | -$4,077 |
| SOUTH RIVER BORO | -$4,069 |
| WOODBRIDGE TOWNSHIP | -$4,061 |
| PENN'S GROVE | -$4,059 |
| NEW BRUNSWICK (A) | -$4,056 |
| HILLSIDE | -$4,036 |
| BRIDGETON CITY (A) | -$4,033 |
| ROSELLE BORO | -$4,012 |
A = Abbott. B = Bacon.
I see no reason why Paterson should be prioritized over these much more severely underaided districts, especially since almost all of above are all non-Abbotts and thus have to pay for their own construction costs and most residents have to pay for their own children's Pre-K.
Paterson's Board of Ed cannot demand that the state give Paterson more money when Paterson's Board of Ed keeps Paterson's taxes so low compared to its Local Fair Share.
Paterson's Local Fair Share is almost $50 million higher than its Local Tax Levy.
Paterson's school taxes have been flat for seven years.
But David Hespe is wrong about something too.
“Appealing isn’t going to be helpful at this moment in time because there’s no money,” said Hespe. He said the annual appropriations for all New Jersey school districts was set by the governor and the legislature in June.
I don't know if Hespe means "there is no money for 2015-16 due to the budget calendar" or if he was taking a long view, thinking of the Pension Crisis, and saying "there is no money indefinitely," but the Department of Education could find additional money if it redistributed aid away from aid hoarders.
The 220 NJ districts that get more than 100% of their uncapped SFRA aid receive over $600 million in excess money. Take aid in excess of uncapped aid away from overaided districts like Asbury Park, Jersey City, Hoboken, Pemberton, and Toms River. Take all aid away from ultra-high resource districts at the Jersey Shore, Harding, Alpine, and Hoboken (again). Unlist Hoboken and Jersey City from the Abbott list, restrict Pre-K there to poor kids, and save a few tens of millions more. Eliminate "Additional Adjustment Aid." Bring some common sense to the Interdistrict Choice blank check.
NJ could raise taxes somewhat, although any new tax revenue would probably need to go the Pension Crisis.
Not everyone in Paterson sees the problems of the Paterson Public Schools as solely (or mostly) due to a lack of money. The pastor, Rev. Michael McDuffie, who invited David Hespe to Paterson said this:
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The 220 NJ districts that get more than 100% of their uncapped SFRA aid receive over $600 million in excess money. Take aid in excess of uncapped aid away from overaided districts like Asbury Park, Jersey City, Hoboken, Pemberton, and Toms River. Take all aid away from ultra-high resource districts at the Jersey Shore, Harding, Alpine, and Hoboken (again). Unlist Hoboken and Jersey City from the Abbott list, restrict Pre-K there to poor kids, and save a few tens of millions more. Eliminate "Additional Adjustment Aid." Bring some common sense to the Interdistrict Choice blank check.
NJ could raise taxes somewhat, although any new tax revenue would probably need to go the Pension Crisis.
Not everyone in Paterson sees the problems of the Paterson Public Schools as solely (or mostly) due to a lack of money. The pastor, Rev. Michael McDuffie, who invited David Hespe to Paterson said this:
While other education advocates in Paterson have argued that insufficient state funding has been at the core of the district’s problems, McDuffie see things differently. He pointed out that the district has an annual budget of about $550 million. “There’s enough money coming into this district already to take care of Paterson,” the pastor said.
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