Opinion ID: 2294246
Heading Depth: 1
Heading Rank: 23

Heading: The SFRA Formula

Text: SFRA is a weighted school funding formula exemplifying the tenets of equity, transparency, and predictability. Loeb, 9 T 17:5-11 and 21:3-14; D-122 ¶ 39. A weighted student formula applies a per-pupil amount to the enrollment for each school district. D-122 ¶ 23. The per-pupil amount is increased for specific needs such as higher grade levels, at-risk students, LEP students, and special education students. Ibid. Dr. Susanna Loeb (Loeb) testified the Weighted Student Formula is an effective and appropriate means for education funding. D-122 ¶ 24. Importantly, Loeb found it is perhaps the most appropriate funding approach. Loeb, 9 T 20:16-19. SFRA attempts to meet three important school funding goalsequity, transparency, and predictability. See, e.g., D-122 ¶ 39. First, an equitable funding approach is one that treats similar districts similarly and different districts differently. Id. ¶ 13. Loeb testified a weighted formula, if done properly, fulfills this goal by weighing different student characteristics. Loeb, 9 T 19:12-20:9. In focusing on equity, the Commissioner opined SFRA attempts to provide adequate funding for all at-risk students throughout the State. D-1 ¶ 48. The Commissioner noted the demographic landscape of the State has changed since Abbott II, yet the bulk of the State's resources are focused on Abbott districts to the detriment of other schoolchildren. D-1 ¶ 51. For example, in 2008, 49% of at-risk students lived outside the Abbott districts approximately 184,000 students. D-1 ¶ 49; Davy, 1 T 99:16-101:21. Yet, parity aid and supplemental aid are provided solely to the Abbott school districts. D-1 ¶ 52. Second, transparency is an important funding goal as it enables stakeholders to determine readily the basis for funding outcomes. D-122 ¶ 16. Loeb testified transparency allows districts to know why they are receiving a particular amount of funding. Loeb, 9 T 14:7-14. This knowledge enables districts to make decisions that are more informed. Id. at 14:15-15:2. Third, predictability enables districts to predict the available funding, allowing districts to plan and implement programs more effectively. D-122 ¶ 17. This works best over long time periods, providing for effective long term planning. Loeb, 9 T 15:12-20. The legislature has found and declared the following with regard to SFRA: [SFRA] represents the culmination of five years of diligent efforts by both the Executive and Legislative branches of State government to develop an equitable and predictable way to distribute State aid that addresses the deficiencies found in past formulas as identified by the Supreme Court. Working together toward this common goal, the Department of Education and the Legislature engaged nationally recognized experts in education funding and provided significant opportunities for stakeholder involvement and public input to assist in formulating and refining a comprehensive school funding model that has been validated by experts. The formula accounts for the individual characteristics of school districts and the realities of their surroundings, including the need for additional resources to address the increased disadvantages created by high concentrations of children at-risk. N.J.S.A. 18A:7F-44(h); see also D-1 ¶¶ 2-3. The SFRA formula is comprised of several components: the Adequacy Budget, Equalization Aid, Categorical Aid, Adjustment Aid, and Education Adequacy Aid. In addition, SFRA contains provisions for adjustment over time and accountability. To better understand the complicated dynamics of SFRA each component shall be addressed and explained.