'Frozen' towns see a thaw in N.J. school aid State budget aims at non-Abbotts with large numbers of poor pupils Tuesday, February 27, 2007 • BY JOHN MOONEY AND DUNSTAN McNICHOL • Star-Ledger Staff For five years, as the state poured billions of dollars in additional aid into the state's poorest urban school districts, middle-class towns with large numbers of poor students strained to keep standards high and tax increases reasonable. Apparently Gov. Jon Corzine felt their pain. Details of Corzine's state budget proposal released yesterday show the first significant, across-the-board increases for schools since 2000, with double-digit increases in some middle-class towns. The biggest winners were places like Red Bank, Cliffside Park and West Orange, where increases as large as 18 percent were based mostly on large numbers of low-income students. In 50 such towns, school aid will rise at least 10 percent, after a virtual freeze that lasted more than half a decade. The budget proposal now moves to the Legislature for review. "I thought I read it wrong," Red Bank Superintendent Laura Morana said. "I saw 18.6 percent (increase) and thought it must be an error." In other towns where state officials were reporting large increases, local officials reacted with cautious optimism, delaying major celebrations until detailed budget documents arrive today from the Department of Education. "Until they give us our budget breakdowns, we don't know how we feel," said Patricia Morris, spokeswoman for Edison schools, which were listed for a 3 percent increase in state aid. In his budget address Thursday, Corzine said he would provide a minimum of 3 percent more in state aid to every district. A majority of districts received that amount, according to the numbers released yesterday, and education officials said the state's poorest cities were going to have to provide detailed justification in order to qualify for the 3 percent jump. A series of state Supreme Court decisions in cases brought on behalf of poor children forced the state to pump billions of dollars in additional aid into 31 poor, urban districts in recent years. Corzine agrees that high level of funding must be maintained -- both morally and legally -- but he believes it is essential to lift up other districts in need of help. In 16 of the poorest 31 -- known as Abbott districts for the name of a plaintiff in the case -- residents will be asked to contribute a total of $17 million more in local taxes to make up for small cuts in aid. Corzine's budget had the most to offer communities one rung up the socio-economic ladder from the Abbotts -- a group that also happens to be largely Democratic, the same party as the governor. To help these towns, the proposed budget would establish a $66 million pot for schools with high concentrations of low-income students. In Red Bank, the superintendent said the additional aid could provide a needed cushion in a budget now straining to offer music programs and world language instruction. Cliffside Park, where a 17.9 percent increase in aid would translate into $678,000, would be able to keep existing full-day kindergarten and pre-school programs and perhaps expand others, said its superintendent. "We have some issues with passing the (state tests) and have started after-school programs for that," said Michael J. Romagnino, the acting superintendent. "This will allow us to keep them going and even enhance them." State Education Commissioner Lucille Davy said the aid was aimed specifically at districts facing the biggest challenges. She pointed out that non-Abbott districts in the state's poorest communities will see a total increase of 10 percent, while those in the richest towns will be limited to about 3.3 percent, just over the minimum. Before the 31 Abbott districts see their share of additional state aid, they will have to address any concerns raised in a series of court-ordered audits, Davy told a hearing of the Senate Education Committee yesterday. Corzine's budget includes $125 million in increased state aid for the Abbott communities, but Davy said that amount is a "placeholder." The real aid each district receives will be determined after a review of their budget requests and will include adjustments for any misspending identified in ongoing audits. "If they need to get an increase, they get an increase," she said. "This is going to be a district-by-district review." Audits of the four largest special-needs districts -- Camden, Newark, Paterson and Jersey City -- raised questions about $15 million in expenditures across the four communities, including potential problems with overtime pay, travel and expenditures on frills like flowers and decorative items. Davy said the proposed additional state aid could be docked in districts where improper spending is verified. "The goal here is to bring about the change that is necessary so people don't buy $1,000 worth of poinsettias for a board meeting, or someone doesn't buy a jukebox for a lunchroom," she said after the hearing, citing two examples included in the audits. "Our goal is not to play 'Gotcha,'" she said. "It is to bring about the change that is necessary." David Sciarra, the attorney who has pressed the case for additional state funding on behalf of students in the Abbott districts, said local officials weren't given adequate time to respond to allegations of misspending in the first round of audits. He said those allegations should not be the basis for funding decisions. "There's no basis to penalize the educational program children need going forward," he said. John Mooney may be reached at jmooney@starledger.com. © 2007 The Star-Ledger. Used by NJ.com with permission.