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QOD: Sen. Sweeney on Caps to NJ’s Interdistrict School Choice Program

February 20, 2014

Laura Waters

New Jersey school districts that enroll non-resident students through the state’s Interdistrict Public School Choice Program were caught off guard when Gov. Christie’s budget last year capped increases in enrollment at 5%, well below the enrollment caps inscribed in state law. Currently 130 NJ districts (out of 590) enroll about 5,000 students; the state sends incentive checks to districts in amounts varying from about $4K to $10K per student.

NJ Spotlight reports today “supporters note that some districts have come to depend on the choice program and the state money that comes with it. Some of them have set up programs – and even purchased facilities — specifically to help attract outside students. Because of the 5 percent cap, some districts are left with available seats they’re not allowed to fill. “

So here’s Senate President Steve Sweeney on a school choice program that is “a model of success that the Christie Administration is now stifling”:

“We have a great choice program that they just put a cap on,” Sweeney said. “Kids are succeeding, families want to see kids stay in public schools, and they are furious. . . We created competition within our schools, and they put a cap on it.”

Laura Waters

4 Comments

JSB79, February 21, 2014 @ 5:10 pm Reply

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JSB79, February 21, 2014 @ 5:21 pm Reply

“Currently 130 NJ districts (out of 590) enroll about 5,000 students; the state sends incentive checks to districts in amounts varying from about $4K to $10K per student.”

Note, there are 4,682 Choice students for 2013-14, not 5,000.

Choice Aid per Choice student is usually above $10,000. The average per Choice student is $10,479 ($49,064,570 divided by 4,682).

True, some Choice districts that have low Local Fair Shares only get $4,000 per Choice student but those districts are the minority. Choice districts that have high Local Fair Shares get close to $15,000 per Choice student.

The Interedistrict Choice Association has been spinning the costs by emphasizing that some Choice districts only get $4,000 a Choice student, but averages are averages. Many Choice districts get 2-3 times that amount. As mentioned, the average payment $10,479.

I find it ironic that Steven Sweeney is advocating for a 0% tax cap to force municipal consolidation but supports unlimited Interdistrict Choice, which is a powerful anti-consolidation force. Why should New Jersey's tiny districts like Stockton and West Cape May (even with their Choice students each has fewer than 100 students total) consolidate with anyone when they can get hundreds of thousands of dollars in additional state aid?
JSB79, February 24, 2014 @ 2:35 am Reply

The actual net costs to state taxpayers are less than $10,000 per Choice student because, after the first year (when the state pays regular state aid to the home district and receiving district), the state ceases to pay aid to the home district for that student. Since the home district may get a lot more aid than the receiving district, there are some offsets.

But as far as I know, Interdistrict Choice spokespeople do not make this argument.

Anyway, aside from DOE administrative costs and increased Transportation Aid, the costs to state taxpayers from Interdistrict Choice are:

Receiving District's Avg (non-Choice) State Aid-Home District's Avg (non-Choice) State Aid + Receiving District's Local Fair Share.

If the difference between the Home District's Regular State Aid and the Receiving District's Regular State Aid is greater than the Receiving District's Local Fair Share state taxpayers break even.

I'll use Deal as an example because Deal's Interdistrict Choice program has gotten a lot of reportage. Deal's regular state aid per pupil is ~$1100. Deal's Local Fair Share is (at least $14000 per student, so Deal's Choice Aid per student is >$14,000.

If the student is from Asbury Park:
$24400 – $1100 + $14000 = $9300 in savings per student.

If the student is from Long Branch:
$8700-$1100+$14000=$6,400 in extra costs per student.

If the student is from Belmar:
$1800-$1100+$14000=$13,300 in extra costs per student.

When a student transfers from a high aid district to a low aid district, the state's additional costs are lower and the state may even save money. When a student transfers between low-aid district to another low aid district the state's costs are much higher since the state has to pay the low-aid district's Local Fair Share, which (by definition) is very high.

In actuality, only 15 Choice students in Deal are from Asbury Park (and another ~25% are from Long Branch or Neptune), so despite the potential for some savings, Deal's Interdistrict Choice program is still a large net cost for state taxpayers. Most of Deal's Choice students come from other low-aid districts.

Also, the number of Choice students a district is paid for doesn't necessarily equal its increase in student population since a Choice district can be a receiving district and a sending district. If a Choice district takes 40 students in but sends 50 students out, it gets paid for 40 students (~$400,000), even if there is a net decrease in population!

Also, it has to be considered that when a high-aid district loses students through Interdistrict Choice it loses substantial amounts of money (as well as its stronger students). Some Abbotts are over aided and overfunded anyway, but Long Branch isn't. Long Branch's per pupil spending is $14,700, which is average. I do not know how many students Long Branch loses to Interdistrict Choice, but if it's twenty students it's $174,000 (plus Aid in Lieu of Transportation).

The higher a portion that a district's budget comes from state aid, the more similar Interdistrict Choice's financial impact is to the financial impact charter schools have.

The real bottom line here and why the 5% cap should be kept is that NJ has a half a billion deficit. Overall K-12 aid is likely going to be cut. When overall K-12 aid is being cut how can we afford to allow unlimited growth to Interdistrict Choice? Last year the cost increase for Interdistrict Choice was $16 million – if there were no enrollment cap the cost increase for 2014-15 would be $20-30 million. How can we afford that?

http://www.thedailyjournal.com/article/20120611/NEWS01/306110013/School-choice-thrives-NJ

http://www.mycentraljersey.com/article/20131215/NJOPINION06/312150021/-Issue-School-choice-interdistrict-program-making-grade-
JSB79, February 26, 2014 @ 7:41 pm Reply

For more information:

http://thealternativepress.com/categories/letters-to-the-editor/articles/interdistrict-choice-reforms-are-needed-before-f