Trenton Centralizes Power at Expense of Small Towns

August 21, 2009

Contact: Tara Fantini / (732) 974-0400
Senator Sean T. Kean (R-11)

The following is an editorial by Senator Sean T. Kean of New Jersey’s 11th legislative district:

In 1776, Americans declared their independence in large part because they objected to being subjected to unfair taxes imposed upon them without representation. Today, a similar scenario is playing out in New Jersey, where a new school funding law empowers State Education Commissioner Lucille Davy with the ability to decide where the children of small non-operating school districts attend school and how local taxpayers will pay for it.

Davy has stated repeatedly that all school districts, especially non-operating districts, should pay based on the same criteria. Yet, a new school funding law, passed in the waning hours of the last session before the Legislature recessed for the summer, gave her unilateral authority to decide how much each non-operating district will pay under a new tax formula. Essentially, like King George III, she is setting tax rates, something that should be established by duly elected officials. At a minimum, this law raises serious constitutional questions and undermines whatever credibility the Corzine administration has left on the issue of school funding.

200 years ago, when the right of citizens to make decisions about their own welfare was usurped by a distant authority, the result was the American Revolution. Today, in New Jersey, the result is Loch Arbor, where property taxes increased nearly 400% overnight as a result of Trenton’s attempt to “fix” the school funding formula.

While King George treated all taxpayers unfairly, Trenton prefers to pick on little towns, while the big cities continue to receive preferential funding treatment. In fact, according to the non-partisan Office of Legislative Services, student enrollment in districts formerly known as Abbott districts represents 23% of enrollment statewide. These districts receive 53% of state aid, and that does not even include debt service, funding for pre-kindergarten or pensions. Of the approximately $8 billion in state aid that was distributed through the formula, Abbott districts received approximately $4.24 billion. At the same time the other nearly 600 non-Abbott school districts must split the remaining state aid.

But that is fair in the eyes of the State Supreme Court and the Corzine administration. Trenton also believes it is fair to punish small, non-operating districts for doing what the state has been telling them to do for years. In reality these districts already have consolidated and operate more efficiently by establishing shared services arrangements to educate their children in cooperation with neighboring towns. Now, under the recently enacted law, Trenton is mandating that despite all of their efforts, non-operating districts will be eliminated and forced to merge with other larger districts.

The Corzine administration’s contention that Davy will be able to ensure there are no huge property tax hikes under the new formula comes as little consolation to the residents of Loch Arbor. That is because the law which empowered the Commissioner of Education to unilaterally set tax rates for non-operating districts did not provide the same special treatment for consolidated districts. Essentially, the Education Commissioner has been given unprecedented discretion to establish tax rates in towns throughout the state—a frightening proposition when one considers how the actions of the Corzine Administration have impacted on small towns like Loch Arbor.

On the surface, this new law may appear to be a common sense, cost-saving measure by forcing non-operating districts to consolidate. In reality, there will be little if any real savings. Meanwhile, the law takes education decision-making authority away from these small communities and puts it in the hands of Trenton bureaucrats. As the non-operating districts are dismantled over the next year or so, I hope Trenton has more regard for the taxpayers of these small towns than they have shown so far.

Governor Corzine and Commissioner Davy believe that eliminating a few non-operating districts will reduce our soaring property tax bills. But only real reform will accomplish property tax reductions. The answer is to fund each student in New Jersey on a fair per pupil basis. Penalizing small districts that are presently operating efficiently will not provide the dramatic relief that the taxpayers of New Jersey deserve.

Link to Post:

http://www.senatenj.com/index.php/seankean/trenton-centralizes-power-at-expense-of-small-towns/4005