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					      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.

				
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