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.”

New Arrivals

In a letter to Betsy Devos, Michigan officials highlight the plight of refugee students — and ask for testing waiver.

PHOTO: Warren Consolidated Schools
Students at Warren-Mott High School in the Detroit suburbs. Officials there say that many students are arriving at the school from refugee camps, including 11th graders who had no formal schooling for nine or ten years. Such students would currently be required to take a state English test during their first year in school.

To teachers who work with recently arrived refugee students, the problem is clear. Although their students will eventually learn English, their language skills at first aren’t comparable to those of native speakers. They’re hoping that officials in the Devos education department won’t be able to avoid coming to the same conclusion after reading the state’s detail-rich request to delay testing new immigrant children in English.

That puts Michigan on track to become the second state to ask for a waiver from the federal law that requires a child who arrived in the U.S. this year to take a standardized English test within a year after arriving — even if they’re just being introduced to the language. The law also requires states to count such students’ scores in decisions about whether to close low-performing schools.

“We wanted to balance between presenting hard data and some anecdotes,” said Chris Janzer, assistant director of accountability at the Michigan Department of Education. “We’re hoping that the case we present, with some of the stories, will win us approval.”

The stories hone in on the Detroit area, home to the nation’s largest concentration of Arabic speakers, including many newly arrived refugees fleeing wars in the Middle East. This population is unique in more ways than one: It includes more than 30,000 Chaldean Christians who arrived after the U.S. invasion of Iraq in 2003 — the largest such population in the world outside Iraq. And many of its children must deal with the aftereffects of violent displacement even as they attempt to attend school in what is in many cases an entirely new language.

The state’s waiver request offers Hamtramck, a hyper-diverse city enclave in Detroit, as an example:

Hamtramck has many recent arrivals from war-torn regions in Yemen and Syria and has students from remote villages with no formal education background, as well as many others with interrupted learning. New students can have toxic stress and can even be suicidal, and often require wraparound services. Older students are also often burdened with the responsibility of helping their families financially, emotionally, and with childrearing.

Even the luckiest new arrivals would benefit if Michigan receives a waiver from parts of the federal Every Students Succeed Act, says Suzanne Toohey, president of Michigan Teachers of English to Speakers of Other Languages.

“The intent of the waiver is for the most needy students, but it will help all students,” she said, adding that it typically takes 5-7 years for an English learner to catch up to her native-speaking peers.

With that in mind, Toohey says current federal requirements don’t make sense.

“It would be like an adult who is many years out of school, and who took French for two years of high school, going to France and trying to take a college course,” she said. “It’s just not going to happen.”

Following the same logic, Michigan officials are asking Devos’ education department to put the brakes on federal requirements for testing recently arrived English learners. If the waiver request is approved:

  • In their first year in Michigan schools, those students wouldn’t be required to take the state English language arts exam.
  • In their second, they would take the test, but schools wouldn’t be held accountable for their scores.
  • In year three, the growth in their scores on the English exam would be factored into school ratings.
  • And in year four their overall score — known as proficiency — would be counted as well as their growth.

That’s still too soon to begin testing English learners, Toohey said, noting “the waiver is a start, but we haven’t gotten all the way there.”

Even so, the proposed change still faces substantial obstacles. New York’s request for a similar waiver was denied by the U.S. Department of Education in January. In its response, the department said it was holding New York to its responsibility to “set high expectations that apply to all students.” Janzer says his staff studied New York’s waiver and concluded that Michigan’s should include more details to humanize the situations of the affected students.

Michigan officials are currently working to incorporate public comments (there were seven, all of them supportive, Janzer said) into its request, which is expected to be submitted in the coming weeks. A decision isn’t expected from federal officials for several more months.

Whoever reads the 10-page document in Washington, D.C. will be confronted with details like these:

  • Lamphere Schools, of Madison Heights, MI, has received a significant influx of students from Iraq and Syria, and at least one elementary school’s student body is roughly 70 percent recently arrived students from these two nations. Lamphere reports that some students initially undergo temporary “silent periods,” a researched stage of second language acquisition, where children are watching and listening, but not yet speaking.
  • Warren Consolidated Schools, of Warren, MI, reports that they have many students from refugee camps, including students who are testing in 11th grade after having no formal schooling for nine or ten years. Warren Consolidated has received 2,800 students from Syria or Iraq since 2007.

Read the full document here. Most local details are on pages 7-9.

live stream

WATCH: Candidates for Detroit school board introduce themselves live

PHOTO: Koby Levin
Detroiters at IBEW 58 wait for candidates for school board candidates to address them.

The nine candidates for Detroit school board are gathering Thursday evening at IBEW 58 in Detroit to make their cases in advance of the November general election in which two seats are up for grabs.

The candidates have already introduced themselves in video statements, but this is one of their first chances to address the public in real time.

We’re covering the event — including a live stream the candidates’ opening statements, which should start around 7 p.m.

Click below or check out our Facebook page to see what they have to say.