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    You are at:Home ยป Understanding the School Funding Formula and Why Edison’s Funding has increased from $15.5 million in 2017/18 to $94.4 million in 2024/25

    Understanding the School Funding Formula and Why Edison’s Funding has increased from $15.5 million in 2017/18 to $94.4 million in 2024/25

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    By The Edison Reporter Staff on May 27, 2024 Schools

    In 2018, New Jersey took a major step in reforming its school funding system with the passage of Senate Bill S2. This significant piece of legislation aimed to address longstanding inequities in the distribution of state aid to school districts. At the forefront of this effort was then-Senate President Stephen Sweeney, a powerful voice in New Jersey politics.

    Prior to S2, New Jersey’s school funding formula was based on the School Funding Reform Act (SFRA) of 2008. SFRA was a laudable effort to ensure that all school districts had sufficient resources to provide a “thorough and efficient” education. However, implementation challenges and changes in state leadership led to underfunding for a large number of school districts. This resulted in overfunded districts, often in wealthier communities, receiving more than their fair share of aid, while many underfunded districts struggled to provide basic services.

    At town hall on school funding in 2018 Senator Sweeney used Edison as an example stating “You have two suburban towns in Middlesex County, right next door to each other Edison and East Brunswick. They have similar demographics and per capita income and Edison is twice the size with twice as many students; how is it East Brunswick is receiving more aid ($18.2 million) than Edison. ($15.5 million)” Senator Sweeney went on to thank Edison Board of Education member Rich Brescher for working on the numbers with him.

    NJ Bill S2 introduced several critical changes to the state’s school funding system:

    Elimination of Adjustment Aid: S2 phased out “adjustment aid,” a category of funding that disproportionately benefited overfunded districts. This redirected resources toward underfunded districts.

    Removal of State Aid Growth Limits: Previously, state aid increases for districts were capped. S2 lifted this restriction, allowing districts to receive the full amount of aid they were entitled to under the SFRA formula.

    Tax Levy Growth Adjustments: To ease the transition for communities facing reductions in state aid, S2 allowed certain districts to exceed the standard property tax levy restrictions.

    Senator Stephen Sweeney played a pivotal role in the passage of S2. He recognized the inequities in the existing system and championed the cause of underfunded districts. Sweeney’s ability to build consensus and navigate complex negotiations in the New Jersey State Legislature was instrumental in securing enough votes for the bill’s passage. Edison has been one of the biggest beneficiaries of the change receiving an additional $78.9 million more in 2024/25 than they received in 2017/18.

    Councilman Rich Brescher who was a Board of Education member at the time said, “It was actually Jerry Shi and I who met with Senator Sweeney and explained how the taxpayers of Edison were being short changed year after year and we were unable to make up for the lost aid.” Brescher went on “Senator Sweeney did what many considered the impossible and I will be forever be thankful. The increased aid has given the BOE the ability to move forward with projects that were not possible without the increased aid.”

    While S2 has brought welcome changes to Edison’s school funding landscape the debate over fairness continues. Some argue that the reforms did not go far enough, while others raise concerns about the impact of potential funding reductions for certain districts.

    NJ Bill S2 marked a significant shift in how New Jersey allocates funds to its public schools. The legislation addressed a pressing need for greater equity, although the long-term consequences and the need for further adjustments remain a subject of discussion. Senator Sweeney’s leadership in spearheading this reform left an enduring mark on New Jersey while Councilman Brescher’s efforts led to Edison’s increased funding from $15.5 million in the 2017/18 school year to an astounding $94.4 million in the 2024/25 school year.

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