BRICK, NJ — As a bill that would cut aid to dozens of school districts across New Jersey advanced out of committee on Tuesday, a coalition of districts that stand to be hurt significantly are calling on state legislators to take a closer look before they move forward.

Senate Bill S2, proposed by state Senate President Stephen Sweeney, would cut so-called adjustment aid to districts across New Jersey in order to push more aid to severely underfunded school districts. Sweeney, who has taken a hard line on the cuts, says districts receiving the aid are overfunded. It was approved by the state Senate Budget Committee and heads to the Senate for a full vote Thursday. Opponents of the bill say the formula used to determine state aid is severely flawed and doesn't properly calculate wealth and income.

The Brick and Toms River school districts have been vocal in their opposition to the bill, which would result in cuts of $42 million combined over seven years. But they are far from alone, and on Tuesday representatives of 34 other districts affected by the Sweeney proposal joined them in calling for state legislators to take another look, according to a joint news release from the coalition of school districts. Nearly 100 districts stand to lose aid under the Sweeney bill.

The key contention: the formula used to determine state education funding is severely flawed, and has been for quite some time. Components such as wealth and income are not calculated fairly; the formula fails to take into consideration PILOTs (payments in lieu of taxes, paid by developers to towns instead of property taxes); and more than 30 towns have not had property revaluations -- a key facet in determining need -- in more than 25 years. (READ MORE: School Aid Fight: Toms River To Lose $18M Under Sweeney Plan; School Aid Fight: Brick To Lose $22M Under Sweeney Plan)

"Cutting aid through a formula that identifies districts that are 'overfunded' or 'underfunded' based on calculations that are materially flawed doesn't make sense," said William Doering, business administrator for the Toms River Regional School District. "Before taking money away from our students, let's make sure we correct the formula." "We're asking legislators to take a closer look at all of this before Thursday's vote … if nothing else, to put it off," said James Edwards, business administrator for the Brick Township Schools. "This way, nobody loses, and it gives legislators a chance to evaluate the formula."

Jeffrey Bennett, of the Fair Funding Action Committee, a group backing the Sweeney bill, says the complaints about the revaluations are inaccurate and that county tax assessors compensate for that in an equalized valuation figure that looks at recent property sales to gauge valuation. He also contents the PILOT issue is overstated.



Former state Comptroller Matthew Boxer, in a 2010 report provided to state legislators including Sweeney and current Lt. Gov. Sheila Oliver, said the net effect of PILOTs on school funding is that other towns and taxpayers across the state end up picking up the tab of property taxes that should have been paid.

"This system allows the municipality, in essence, to hide its true wealth from the school district and the state," Boxer wrote, and hurts schools the most because they receive none of the PILOT money. The Sweeney bill, S2, would reduce adjustment aid 5 percent for the 2018-19 school year, and reductions of 8 percent in 2019-2020, 10 percent, 14 percent, 18 percent, and 21 percent, with the last portion being cut in the 2024-25 school year.

