Maryland may show Jersey the way to pare school costs

Thursday, September 07, 2006 • BY TOM HESTER • Star-Ledger Staff

New Jersey spends 10 percent of its school dollars -- $1,235 per student -- on administrative costs. In Maryland, the figure is less than 3 percent.

Whether looking at average per- pupil spending or the percentage of property taxes that go to fund schools, New Jersey outspends Maryland by a significant amount for one key reason: New Jersey has 611 school districts; Maryland has 24, one for each county.

The crash course on how Maryland operates its schools was provided to the Joint Legislative Committee on Government Consolidation and Shared Services in Tren ton yesterday by Maryland Assistant State Superintendent of Education Mary E. Clapsaddle via videoconference.

It delighted Sen. Bob Smith (D- Middlesex), the panel's co-chairman, who wants to create 21 coun tywide school districts to oversee local schools, eliminate hundreds of high-paid administration positions and consolidate purchasing and transportation.

"When we look at the numbers, Maryland's population and demographics are not too far off from our own," Smith said. "They have fewer students in schools, but they actually have more kids enrolled in the federal school lunch program, indicating a higher level of poverty. When you look at the spending sta tistics, however, Maryland and New Jersey are like night and day."

When told by Assemblyman Jo seph Malone (R-Burlington) that New Jersey spends 10 percent of its school funding on administrative costs, Clapsaddle replied, "That is alarming." Maryland spends 2.68 percent -- or $240 per student -- on administrative costs, she said.

New Jersey spends $12,567 on average to educate a child, compared with $9,200 in Maryland.

New Jersey taxpayers see an average of 51 percent of their property taxes go toward school funding. In some school districts, it is as high as 88 percent. In Maryland, 24.6 percent of property taxes is used to finance schools.

New Jersey spends $16 billion for public schools; Maryland, $8 billion.

"There is the potential for seri ous savings," Smith said following the hearing. He said he wants to see the committee propose a school district consolidation bill within a month.

The committee also heard about an example of consolidating municipal governments, but it held less promise of savings.

Enid Slack, a professor and municipal finance and government ex pert at the University of Toronto, told the panel via videoconference how more than a dozen suburbs were consolidated with the Canadian city between 1954 and 1998.

"The rational for the consolidation was to reduce the cost of government," Slack said, but it didn't work out that way. When six police departments combined, she said, the officers demanded they receive the highest salary among them. In some cases, property taxes increased when towns combined. She said the chief benefit was improved planning and municipal services.

William Dressel, director of the New Jersey State League of Municipalities, said Slack's comments confirm his position that consolidating local government does not produce major tax savings. "In fact, the Toronto experience indicates salaries actually increased because when salaries were blended they went to highest salary scale," Dressel said.

The government consolidation committee is one of four special legislative panels created to propose ways by Nov. 15 to lower property taxes.


Tom Hester covers state government issues. He may be reached at thester@starledger.com or (609) 292-0557.
© 2006 The Star-Ledger. Used by NJ.com with permission.

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