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NJDOE School Funding Reform Act Outreach Testimony

NJDOE School Funding Reform Act Outreach Testimony

Thank you to NJDOE for listening to school leadership from across South Jersey regarding the school funding formula. 

Superintendent Dr. Kwame Morton, Board of Education President Gina Winters, and others spoke on behalf of Cherry Hill Public Schools regarding state aid at a recent NJDOE SFRA Outreach Testimony.

 View a copy of Dr. Morton's testimony

View a copy of Mrs. Winters' testimony

Dr. Kwame Morton's testimony:

Good evening, members of the New Jersey Department of Education. My name is Dr. Kwame R. Morton, Sr. and I am the Superintendent of Cherry Hill Public Schools. I thank you for giving me the opportunity to speak on behalf of my district and the Cherry Hill Public Schools community.

First, I extend my deepest gratitude to the legislators who provided Stabilized School Budget Aid last year. This critical support covered 45% of the $6.9 million reduction in state aid that the district incurred. These efforts made a meaningful difference, helping us soften the immediate impact of these cuts on our students and staff. The commitment to supporting districts like Cherry Hill Public Schools is truly appreciated.

Despite this assistance, our district still experienced a real loss in State Aid of approximately $3.5 million. Beyond the tangible cuts we were forced to make, the most challenging aspect was the unpredictable nature of last year’s state aid allocations. Initially, we faced a $6.9 million loss, following a $7 million increase the previous year, resulting in a year-over-year range of nearly $14 million. Such swings create substantial financial instability, making it nearly impossible to plan a budget effectively and efficiently. For Cherry Hill Public Schools, which serves approximately 11,000 students speaking 72 languages, these drastic fluctuations severely impact our ability to retain talented educators, and provide the consistent, high-quality education our students deserve.

I urge state leadership to take critical steps to address this issue. First, we need clear, predictable parameters to prevent dramatic funding reductions from year to year. As a historically underfunded district, I contend that Cherry Hill Public Schools should receive an increase in State Aid this year. However, if there are losses, then there must be a cap on the amount a district might lose annually. Such a cap would allow districts to plan effectively and avoid devastating cuts to staffing, programming, and student supports. Second, a reassessment of the current funding formula is necessary. Metrics like district income and property values do not fully capture the realities of our community, which is experiencing increased demand for English Language Learner support and special education services, as well as growth in students qualifying for free or reduced lunch.

Cherry Hill taxpayers have demonstrated remarkable dedication to our district, most notably through their approval of a $363 million bond referendum for facility improvements. This step was essential due to years of underfunding in State Aid, which left the district unable to adequately maintain and improve its facilities. Despite the personal financial sacrifice required, our community prioritized the future of our schools. Now, it is imperative that the state matches this commitment by establishing a fair and consistent funding model. Such a model will support districts like ours as we continue to pursue equity and excellence for all students.

In closing, I want to again express my thanks for the Stabilized School Budget Grant provided last year. I urge everyone here to continue working toward solutions that ensure all schools in New Jersey can offer the stability and opportunity our students need to achieve. By investing in consistency and fairness, we can uphold our promise to cultivate the potential of every child. Thank you for your time and thoughtful consideration.

 

Mrs. Gina Winters' testimony:

Good Evening. My name is Gina Winters, and I am the President of the Cherry Hill Board of Education. Thank you for inviting us here tonight to provide feedback on the school funding formula.

Our district shares many of the same educational priorities that Governor Murphy has emphasized during his administration. We were initially delighted to hear in his budget address last year that he was committed to fully funding SFRA. We quickly realized, however, that fully funded does not mean adequately funded to support the needs of our students and schools. Just days after that budget address, we were shocked to learn that our State aid was being cut by almost $7 million. The unpredictability of the current funding formula from year to year limits our ability to meaningfully engage in long-term planning to meet the growing needs of our students and staff. In order to address this issue, as well as maintain a consistent level of support for our shared priorities, we suggest the following changes.

First, the funding formula should be calibrated so that districts have a degree of year over year predictability in the amount of State aid we will receive. Cherry Hill experienced a $7 million increase in aid in 2023, followed by a decrease of $7 million in 2024, resulting in a $14 million swing. Changes like this make it impossible to plan for the future and destabilize the district budgeting process. We suggest looking at the factors that go into calculating equalization aid to make sure they still meet the function that was intended when SFRA was enacted in 2008, especially the use of aggregate income in calculating local fair share and its impact on the fluctuations we see.

Second, transportation aid should be responsive to rising costs and reflect the actual number of students being transported. Despite the fact that our transportation costs have increased from $12.2 million in 2019 to $16.8 million in 2024, our transportation aid has consistently remained flat at $2.8 million. As a result, transportation aid now only accounts for 17% of our actual expenditures for transportation. Rising costs are a result of two factors: the price of bus contracts increasing due to annual inflation and additional students being transported. According to a demographic study commissioned by our Board, our student population will significantly increase over the next five years, especially for our preschool and elementary populations. We suggest that transportation aid increase with the number of students being transported and reflect rising annual costs to support our growing Pre-K-12 population.

Third, Cherry Hill has a large special education population, with 23% of our students receiving special education services. The current funding formula uses an average number for allocating special education aid rather than the actual number of students that the district is serving. To better support this population, we suggest that the actual number of special education students be used when determining special education aid.

These changes to the formula will provide greater predictability and reflect actual district needs with respect to transportation and special education to create a better foundation for budgetary planning and meet the needs of our community. On behalf of our almost 11,000 students as well as our staff, thank you for inviting us to provide testimony. We look forward to continuing to work with you on improving the school funding formula to support our students and provide the high quality education they deserve.