KEAN @ Ocean MANAGEMENT of EDUCATIONAL FINANCE Day 1 Education Finance Is Big Business An Introduction to The Course ICA 5520 Steve Gillingham Who Are You? How Knowledge of Educational Finance Can Help You: • Teacher?: Cope with the procedures for securing materials, services, pay, and benefits • Administrator?: Provide informed, effective leadership to your school or department • Homeowner?: Understand the largest segment of your local property tax bill Education Finance 1. The rules of engagement: federal, state, & local responsibility & control 2. How we got here: an historical context 3. Money for schools: how they get it, how they spend it, how they account for it 4. Some tools of the trade: budgets, financial statements, policies & procedures, agenda & minutes FAMILIARITY AND APPRECIATION NOT MASTERY 5. The resources you will need: Grade Determination Criteria Maximum Attendance & Participation ( One absence: -1, two absences: -5, 3 absences: -15) 20 What’s Happening in School Business Administration ( News media are full of stories affecting or affected by education finance) 10 A Visit to the School District Business Office ( This is where local school district finances are administered on a daily basis) 10 School Board Meeting/Budget Hearing ( This is where local district financial policies are determined) 10 Position Paper (This is your opportunity to describe/explain a particular development, problem, or proposal in regard to school finance which surprised you or with which you have first become familiar 10 during this course.) . Mid-Term Exam ( An on-line exam testing your understanding of 100 school finance facts) 20 Final Exam ( An opportunity to demonstrate understanding of five important concepts ) 20 TOTAL 100 Education Finance Here are several propositions about education finance in New Jersey which we will explore during this course: NEW JERSEY SCHOOLS 2500 NEW JERSEY SCHOOL DISTRICTS 605 NEW JERSEY ENROLLMENT 1.38 MILLION NEW JERSEY TEACHERS 113,000 NEW JERSEY STATE SCHOOL AID $7.9 BILLION ANNUAL COST OF EDUCATION $20 BILLION Jackson $137 million Brick $144 million Toms River $211 million Education Is Big Business! COST STUDENTS STAFF TAXES % U.S. (2003) $440 Billion 48.7 Million 3.5 Million $214 Billion 48.7% Toms River $204Million 17,259 1,236 $116Million 56.9% Jackson $135Million 9,736 654 $69 Million 51.1% Pt Pleasant $37 Million 3,158 238 $28 Million 75.7% Brick $141Million 10,483 798 $91Million 64.5% $15 Million 36.6% MCVT $41 Million 2,080 255 $12 Million 65.9%* * Includes tuition from other districts Education Finance Involves Three Intersecting Elements! POLITICS ECONOMICS Politics being the Economics being the influence of government assessment of education structures, the political programs on the basis of process, interest groups, cost and benefits. and power distribution on education programs and policies. EDUCATION Education being the determination of most effective applications of pedagogy, curriculum content, length of school day, schedule of sessions, and assignment of teachers and students. An assertion: PUBLIC EDUCATION IS A STATE REPONSIBILITY! Another assertion: EDUCATION QUALITY IS A LOCAL REPONSIBILITY! A conclusion: LOCAL CONTROL IS A MYTH! 1648: The first property tax to finance schools Dedham Morrison: “a little republic at every crossroads” Cubberly: “Communities or neighborhoods which wanted to could easily meet and organize a school, levy a tax on their own property, employ a teacher, and erect or rent a building.” Odden & Picus: “Those who did not want schools or were unwilling to pay could choose not to. This created unserved or underserved populations and the first attempts to provide universal education.” New Jersey’s first comprehensive attempt to get all children a basic education • Provided limited state and local funds for the operation of schools • Prohibited spending school funds for purposes other than education • Permitted local school districts to appoint superintendents • Established a state board of education • Created a state superintendent of public instruction • Required schools to be free to all children aged 5 to 18 1838 NEWARK: Barringer High School is the third high school established in the United States 1857 PLAINFIELD: Plainﬁeld High School is the second high school established in New Jersey HENRY BARNARD: Appointed secretary (1837) of the newly created board of educa;on of Massachuse=s. In this posi;on he held teachers' conven;ons, delivered lectures and addresses, carried on an extensive correspondence, and introduced numerous reforms. He persuaded many of the prac;cal beneﬁts of a common school educa;on to the individual and to the state. HORACE MANN: Led the educa;on departments in Connec;cut & Rhode Island & was ﬁrst U.S. commissioner of educa;on (1867). Edited the American Journal of Educa1on, thirty-‐one volumes of informa;on on the subject of common school educa;on. The New Jersey EducaOon AssociaOon was founded in 1853 by a group of educators with a desire to improve public educa;on and elevate the teaching profession. The organiza;on now represents 200,000 New Jersey public school employees, including ac;ve and re;red teachers and educa;onal support professionals, as well as county college faculty. The overwhelming majority of school funding came from the state • Uniform property tax collected by the state • Funds distributed to local school districts on an equal, per-pupil basis • Any extra moneys needed were raised by individual township taxes Assignment • Review the following three documents with the objective of seeing what they tell you about the responsibilities for provision of education borne by various levels of government? a. Tenth Amendment, U.S.Constitution http://www.senate.gov/civics/constitution_item/constitution.htm b. NJ Const: art VIII, sec IV, par 1, http://www.njleg.state.nj.us/ c. N.J.S.A.18A:8-1 and N.J.S.A.18A:11-1 http://www.njleg.state.nj.us/ • School Finance in the News: Be prepared to share some local, state, or national news story relating to school finance which appears this week. • Read Odden & Picus: Chapter 1: Introduction to and Overview of School Finance for some insight into the present magnitude of the education enterprise, a history of how we got there, and the current focus on the issues of equity and adequacy.