FUNDING EDUCATION IN NEW JERSEY Introduction T

The Supreme Court of the State of New Jersey ruled in July 1994 that the funding plan for public education in New Jersey was unconstitutional. Simultaneously, the State Supreme Court ordered that parity in public educational funding be established within the state. The reasoning underlying the Court's ruling was that schools located in poor areas of New Jersey were being "shortchanged."

This ruling came at a time when Republican Governor Christine Whitman was attempting to carry out her election promise to reduce taxes in New Jersey. New Jersey's legislature at the time of the ruling had been attempting to provide property tax (the primary source of school funds in the state) relief to New Jersey property owners for three years. The legislature had begun this battle with Governor Jim Florio in 1991. Both Governor Whitman and the New Jersey legislature were force to reconsider the situation in the Summer of 1994.

Almost a year prior to the ruling by the State Supreme Court in the Summer of 1994, the Governor and the state legislature had appointed two commissions to study the funding equity situation of New Jersey public schools. When the Supreme Court decision was delivered, one reasonably could have anticipated that these commissions would have had a recommended solution to the problem in the hands of the governor and the legislature when the decision was handed down. One would have been disappointed, however, if on

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al government, together with variations from jurisdictiontojurisdiction in property tax bases and property tax administration (rate structures and other factors) often means that some jurisdictions are able to provide education and other services which are significantly superior to those provided in other jurisdictions. 5. The type of housing available may vary from jurisdictiontojurisdiction. Variations in tax rates and assessment practices cause the property tax to vary from jurisdictiontojurisdiction for properties of similar market value. Such variations can cause home buyers to opt for less expensive, lower quality housing in high property tax jurisdictions, rental property owners to construct lower cost, lower quality units in high property tax jurisdictions, and rental property owners to neglect maintenance and modernization in high property tax jurisdictions. Such outcomes vary widely by jurisdiction. The principal reform suggested for the property tax concept is a change in assessment practices from market value to productive value. Although there exists a great deal of support for such a change among economists, there is little support for the concept among the citizenry most of whom would prefer to see ei

Category: Government - F