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.”

Vision

Lawmakers pledge to ‘put some legs’ to new Colorado education plan

PHOTO: Erica Meltzer/Chalkbeat
Colorado Education Commissioner Katy Anthes stressed that a new education blueprint respects local control, as state Rep. Bob Ranking, Lt. Gov. Donna Lynne, and Gov. John Hickenlooper look on.

With just a few weeks left in office, Gov. John Hickenlooper unveiled an educational blueprint for Colorado that he hopes his successor, governor-elect Jared Polis, will take to heart.

The proposals range from increasing teacher pay and making training opportunities more relevant to the classroom to forging partnerships between business and education. They urge policy makers to build on ideas that have already worked at the school or district level. They also suggest revamping the school finance formula, a challenging task that has eluded lawmakers so far.

The legislators who served on the Education Leadership Council that wrote “The State of Education” praised the final product and promised it wouldn’t languish on a shelf. State Sen. Nancy Todd, an Aurora Democrat and former teacher who will chair the Senate Education Committee, said she was committed to “put some legs on it.”

State Rep. Bob Rankin, a Republican from Carbondale who served as co-chair of the Education Leadership Council with Colorado Education Commissioner Katy Anthes, said that a common refrain during his years in the legislature has been that the state lacks a broad vision for education. That’s made it difficult to move forward on thorny questions.

“The State of Education” provides that vision, Rankin said, and can serve as an “anchor” for lawmakers drafting bills and district leaders looking for new ideas. It’s also a way to show the public how Colorado could be a national leader in education, starting in preschool and continuing all the way through retraining for workers changing careers, he said.

Anthes stressed that the report is not a new set of mandates for school districts and that the plan respects Colorado’s principle of local control.

“We recognize that local context matters,” the report summary reads. ”While the subcommittees came to consensus on the principle and strategies for their components of this plan, we know that not every improvement strategy is right for every community.”

Even as the plan lays out ways to prepare students for the jobs of tomorrow, it also highlights the state’s acute need for many of those students to choose careers in education. Lt. Gov. Donna Lynne, who was heavily involved in the project, noted that the “talent pipeline” for early childhood teachers in particular needs to be larger and that pay and opportunities for advancement will have to increase if more workers are to enter and stay in the profession.

The report calls for higher base compensation for teachers, for financial incentives like loan forgiveness and paid student teaching, and for evaluating and improving the working conditions in “hard-to-staff” schools.

It also calls for maintaining a high bar through teacher licensing and for alternative certification programs — used by many to enter teaching as a second career or after majoring in something other than education — to have equivalent standards.

At the same time, the report said the state should monitor licensure policies that may disproportionately discourage teachers of color as Colorado seeks to have a teacher workforce that looks more like the students it serves.

In contrast to earlier pushes for school improvement that focused on test-based accountability for schools and teachers, this report frequently mentions flexibility, collaboration, support, respect, and empowering educators.

The report calls for schools to provide a greater diversity of learning experiences for students, to be more flexible in where learning occurs, and to pay more attention to the challenges students face outside the classroom. It calls for deeper exploration of the community schools model, which involves greater collaboration between parents and teachers and a wide range of services not just for students but also for parents and younger siblings.  

“The State of Education” was developed by the Educational Leadership Council, a bipartisan group of lawmakers, educators, business and community leaders, and heads of state agencies convened by Hickenlooper in 2017. Members used input from more than 6,000 people who took an online survey about their education priorities, some 500 people who attended more than 70 roundtable discussions, and 100 people who served on four subcommittees.

Lawmakers will be weighing these ideas without a major new revenue source after the failure of the Amendment 73 school tax increase. Polis campaigned on a platform that included funding full-day kindergarten and significantly expanding access to preschool, while some lawmakers have suggested special education needs more attention.

Rankin said the state budget has money for targeted programs — Hickenlooper’s proposed 2019-20 budget already includes $10 million to fund ideas developed by the Education Leadership Council — but he also stressed that districts and local communities don’t need to wait for the state to pursue the ideas in the report.

“There is significant money going into education even after the failure of Amendment 73,” said Rankin, who also serves on the Joint Budget Committee. “There’s always room for new initiatives, whether they happen out in rural Colorado or in Denver Public Schools. I think it’s going to be up the districts themselves within their budgets to take up some of these priorities.”

Members of the incoming Polis administration have been briefed on the plan, and Hickenlooper said he hopes the plan will prove useful. A spokesperson for Polis declined to comment on the report.

Hickenlooper said providing all students with a good education is essential to maintaining Colorado’s strong economy.

“We will not stay No. 1 if we do not invest in our kids,” he said.

Read the full report here.

growing enrollment

Denver Green School is the district’s pick for a new middle school in growing Stapleton

PHOTO: Helen H. Richardson/The Denver Post
Workmen frame the walls in new affordable housing units in Stapleton in August 2018.

To serve a growing number of middle school students in the family-focused northeast Denver neighborhood of Stapleton, district administrators have recommended opening a middle school replicating the popular Denver Green School.

The seven-member Denver school board is set to vote on the recommendation Thursday night. Should the board approve it as expected, a second location of Denver Green School would open next fall on a shared campus north of I-70 in the area of the neighborhood known as Northfield. The campus is already home to Inspire Elementary School.

Enrollment in Stapleton schools is expected to increase as new home construction brings more families to the area. The new middle school would start with sixth grade next year and add a grade each year. The district has requested the school eventually be able to serve as many as 600 students.

A committee of parents, community members, and district employees reviewed applications from three schools interested in filling the district’s need for a new middle school. Committee members said they chose Denver Green School because of its stellar academic track record; its success with serving a diverse student population, including students with disabilities; and the fact that the person who would be its principal is an experienced leader.

Denver Green School is rated “blue,” the highest district rating. The original Denver Green School is a K-8 but the Stapleton school would be solely a middle school.

High Tech Elementary School in Stapleton also applied to fill the need by adding middle school grades. The third applicant was Beacon Network Schools, which already has two middle schools in Denver.

All three applicants are district-run schools, not charter schools. Denver Green School is part of Denver Public Schools’ first “innovation zone.” Being in a zone gives Denver Green School more autonomy over its budget and operations than a regular district-run school has.

The new Denver Green School would be one of six middle schools that families who live in the Stapleton, Northfield, and Park Hill neighborhoods can choose from.

Thursday’s vote will bring to a close a process the district calls the “call for new quality schools.” Instead of simply building and operating new schools, Denver Public Schools puts out a request for proposals, inviting anyone with an idea for a new school to apply. The district then facilitates a competitive selection process. The school that’s chosen gets to open in a district building — a prize in a city where school real estate is at a premium.

In this case, some Stapleton parents were disappointed that the district’s most requested middle school, McAuliffe International, didn’t apply. McAuliffe already has one replication — McAuliffe Manual Middle School — and Principal Kurt Dennis said the timing was not right for another.

“We have several excellent leaders in our pipeline that would love to open a new school, but the timing didn’t work for them in terms of where they are both in their careers and with their families,” Dennis wrote in an email to Chalkbeat. “If opportunities were to open up in the future, we would be interested, but not for the fall of 2019.”