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Abbott districts challenge state
They dispute basis for sharing
costs
Saturday, April 15, 2006 • BY JOHN MOONEY •
Star-Ledger Staff
Two of the state's neediest school
districts have challenged a demand by the Corzine
administration to raise their communities' local taxes to
help pay for court-ordered reforms.
Perth Amboy and Asbury Park filed the
complaint in state appel late court this week, saying the
state did not have legal basis for picking them and six
other districts to share in the costs demanded by the state
Supreme Court's Abbott vs. Burke rulings.
The complaint was moved to the state
Supreme Court as part of a broader case involving state
funding in all of the 31 districts falling under the Abbott
rulings. Gov. Jon Corzine has asked the court for a series
of steps to better control Ab bott costs.
Acting Education Commis sioner Lucille
Davy issued the di rective last month to the eight
districts, including Newark, Jersey City and New
Brunswick.
She said after years of the state picking
up virtually the entire costs of programs mandated under Ab
bott, the districts could reasonably afford paying some of
the millions of extra dollars needed each year. The eight
were chosen due to their total equalized tax rates being
less than 110 percent of the state's average, officials
said.
But the lawyer for Perth Amboy and Asbury
Park said the 110 percent threshold appeared arbitrary and
did not take into consideration what each district's
taxpayers could truly bear.
"Under Abbott, without any individual
judgment of each district in terms of what their taxpayers
can afford, the state has no authority to do this," said
Richard Sha piro, the lawyer for the two districts. "They
just as easily could have picked 120 percent or 105
percent."
According to state data, the average tax
bills in Asbury Park and Perth Amboy are among the lowest of
the eight districts cited, at $3,697 and $3,766,
respectively. The highest of the eight is Long Branch, at
$5,678.
Under Davy's plan, the districts would
have to raise their taxes to bring them up to 110 percent of
the state's average, although it would limit the yearly
impact to no more than a $125 increase per
household.
For some, there would be a long way to
go, according to the state's data. For instance, Jersey City
would need to raise another $62 million to get up to the
state's re quired level, increasing taxes a total of $1,030
for each household. Newark, the state's largest district, is
about $17 million short, or $263 per household.
Perth Amboy and Asbury Park are the only
districts so far to appeal the order.
Davy's demand is part of Cor zine's
broader effort to rein in the Abbott districts' costs,
including a freeze in their state aid this year to help
close a $4.5 billion budget hole. The Abbott districts
receive more than $4.2 billion of the overall $7.3 billion
in state aid to schools, not including pension
funding.
Corzine has asked the state Supreme Court
for permission to freeze the Abbott aid and seek tighter
financial controls in general in the 31 districts, several
of which are now among the state's highest
spending.
John Mooney covers education. He may be reached at
jmooney@star ledger.com or (973) 392-1548.
© 2006 The Star-Ledger. Used by NJ.com with
permission.
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