DOE Archives

Biennial Report on the Cost of
Providing a Thorough and Efficient
Education

2002

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STATE BOARD OF EDUCATION

MAUDE DAHME, President Annandale
RONALD K. BUTCHER, Vice President Gloucester
DONALD C. ADDISON, JR Trenton
JEAN D. ALEXANDER Absecon
MARGARET F. BARTLETT Pine Hill
DEBRA CASHA Kinnelon
KATHLEEN A. DIETZ Hillsborough
ANNE S. DILLMAN Perth Amboy
ORLANDO EDREIRA Elizabeth
ARNOLD HYNDMAN Belvidere
SAMUEL J. PODIETZ Lumberton Township
EDWARD TAYLOR Somerdale
ROBERTA H. VAN ANDA Rumson

William L. Librera, Ed.D.
Commissioner
Secretary, State Board of Education

It is a policy of the New Jersey State Board of Education and the State Department of Education that no person, on the basis of race, creed, national origin, age, sex, handicap, or marital status, shall be subjected to discrimination in employment or be excluded from or denied benefits in any activity, program, or service for which the department has responsibility. The department will comply with all state and federal laws and regulations concerning nondiscrimination.


Biennial Report
on the Cost of Providing
a Thorough and Efficient Education

2002

William L. Librera, Ed.D.
Commissioner of Education

Richard Rosenberg, Assistant Commissioner
Division of Finance

Yut’se Thomas, Director
Office of School Funding

New Jersey State Department of Education
P.O. Box 500
Trenton, New Jersey 08625-0500
2002


BACKGROUND

The Comprehensive Educational Improvement and Financing Act of 1996

T&E Amounts and Categorical Aid Cost Factors

The Comprehensive Education Improvement and Financing Act of 1996 (CEIFA) included a uniform per-pupil regular education spending amount based on a set of assumptions regarding the inputs needed to provide a "thorough" education (one that satisfies the Core Curriculum Content Standards) in an "efficient" manner. CEIFA established a T&E range to account for cost variations experienced in the districts and separate weights to incorporate the varying costs of providing educational services at different grade levels. CEIFA included cost factors for categorical aid provided by the department to school districts. Aid categories included in CEIFA were as follows:

1) special education aid;
2) early childhood program aid;
3) demonstrably effective program aid;
4) instructional supplement aid;
5) bilingual education aid;
6) county vocational education aid;
7) distance learning network aid;
8) adult and post-secondary education aid.

Updating the Cost of a Thorough and Efficient Education

CEIFA established a two-year process for updating the T&E amounts and categorical aid cost factors. In each even-numbered year, the Governor is required to present to the Legislature the Report on the Cost of Providing a Thorough and Efficient Education (Biennial Report). The Educational Facilities Construction and Financing Act (EFCFA) also required the department to develop facilities efficiency standards for the 2002 and subsequent reports. The combined New York City and Philadelphia Consumer Price Index (CPI) is used to adjust the cost factors for inflation in the years between reports.


THE 2002 BIENNIAL REPORT ON THE COST OF PROVIDING A THOROUGH AND EFFICIENT EDUCATION

1. Summary

This document fulfills the statutory requirement of N.J.S.A. 18A:7F-4c to reexamine the factors used in CEIFA and recommend to the legislature any necessary changes as well as the requirement of N. J. S. A. 18A:7G-3 and N. J. S. A. 18A:7G- 4h to develop facilities efficiency standards and area cost allowances for this and subsequent reports.

We continue to hear concerns regarding the adequacy and fairness of CEIFA. To address these concerns, the department has begun a deliberate and collaborative process of meeting with a cross-section of stakeholders to explore options for revising the current funding system. It is our plan to have a final proposal completed in time for fiscal 2004-05. In the meantime, work is progressing on interim solutions for fiscal 2004 to address some of the more urgent concerns. Because of the need to complete this report to meet the statutory requirement, and because our work with the funding group is still in progress, none of those ideas is incorporated in these recommendations. Rather, in recognition of the almost universal desire to make fundamental changes to the CEIFA funding system in the near future, we suggest only inflationary changes to the current CEIFA cost factors. Consequently, all of the recommended changes reflect use of the current CPI to increase the 2001-02 cost factors, except for the T&E amount. In this case, the CPI was used to increase the cost factor included in districts’ FY 2003 budgets.

2. T&E Amount

2003-04 T & E Amount

Category Weight

Range

T&E Amount
Kindergarten 0.5 $416 $3,949 – $4,364 $4,156
Elementary School 1.0 $831 $7,897 – $8,728 $8,313
Middle School 1.04 $865 $8,213 – $9,078 $8,645
High School 1.11 $923 $8,766 – $9,689 $9,227

3. Categorical Aid Cost Factors

Special Education Cost Factors

Year Tier I Tier II Tier III Tier IV
1997 – 1998 $150 $2,945 $5,945 $8,250
1998 – 1999 $154 $3,024 $6,104 $8,470
1999 – 2000 $300 $3,155 $4,207 $12,620
2000 – 2001 $305 $3,207 $4,276 $12,827
2001 – 2002 $310 $3,260 $5,975 $13,037
2002 – 2003 $310 $3,260 $5,975 $13,037
2003 – 2004 $317 $3,329 $6,101 $13,312

Early Childhood Program Aid

Year Factor (20-40%) Factor (40% or Greater)
1997-98 $465 $750
1998-99 $477 $770
1999-00 $490 $790
2000-01 $498 $804
2001-02 $506 $817
2002-03 $506 $817
2003-04 $517 $834

Demonstrably Effective Program Aid

Year Factor (20-40%) Factor (40% or Greater)
1997-98 $300 $425
1998-99 $308 $436
1999-00 $316 $448
2000-01 $321 $455
2001-02 $327 $463
2002-03 $327 $463
2003-04 $334 $473

Instructional Supplement Aid

Year Factor
1997-98 $339
1998-99 $348
1999-00 $357
2000-01 $363
2001-02 $369
2002-03 $369
2003-04 $377

1 Note that the March 2000 Biennial Report recommended a cost factor of $6,607 for FY 2002.  This cost factor was decreased in the FY 2002 Appropriations Act.

Bilingual Education

Year Factor
1997-98 $1,073
1998-99 $1,102
1999-00 $1,131
2000-01 $1,150
2001-02 $1,168
2002-03 $1,168
2003-04 $1,193

County Vocational Aid

Year Factor
1997-98 $1,662
1998-99 $1,706
1999-00 $1,752
2000-01 $1,781
2001-02 $1,883
2002-03 $1,883
2003-04 $1,923

Adult and Post-Secondary Education Aid

Year Adult Education Factor Post-Secondary Education Factor
1997-98 $1,345 $1,345
1998-99 $1,381 $1,381
1999-00 $1,397 $1,746
2000-01 $1,420 $1,775
2001-02 $1,443 $1,985
2002-03 $1,443 $1,985
2003-04 $1,473 $2,027

Transportation Cost Factors

Year CP1 CD1 CP2 CD2
1997-98 $280.24 $28.75 $1,192.69 $80.12
1998-99 $287.72 $29.52 $1,224.53 $82.26
1999-00 $371.06 $10.16 $2,590.12 $4.94
2000-01 $377.69 $10.33 $2,632.60 $5.02
2001-02 $383.88 $10.50 $2,675.77 $5.10
2002-03 $383.88 $10.50 $2,675.77 $5.10
2003-04 $391.98 $10.72 $2,732.23 $5.21

Distance Learning Network Aid

Year Factor
1997-98 $40
1998-99 $41
1999-00 $42
2000-01 $43
2001-02 $44
2002-03 $44
2003-04 $45

4. Facilities Efficiency Standards

Consistent with the other recommendations, the construction cost allowance is adjusted to recognize inflation. However, instead of the CPI, the cost construction index is used. Therefore, the current cost allowance is increased by 3.36 percent.

Recommended Facilities Efficiency Standards

Elementary Schools 125 square feet per FTE
Middle Schools 134 square feet per FTE
High Schools 151 square feet per FTE

Recommended New Construction Cost Allowances

Current $138
2003-04 $143