Doering: State school aid formula skewed District to receive only 2 percent more in state aid BY JAMIE ROMM Staff Writer MIDDLETOWN - Middletown School DistrictBusinessAdministratorWilliamDoering feels like he is standing on a soapbox when it comes to discussing the state school aid formula. Doering said that theMiddletown School District could stand to lose more than $12 million under the new school funding formula unveiled by Gov. Jon Corzine in December. "There is $12 million in 'adjustment,' in other words aid that we should not be entitled to," Doering said. "The implications of this a few years down the road could be devastating." According to the department of education's Web site, adjustment aid is listed as, "for at least three years, adjustment aid will be provided so that all districts (including county vocational districts) will receive no less than their fiscal year 2008 state aid amounts increased by two percent.After that time period, decreases in adjustment aidwill only occur for those districts that experience significant decreases in enrollment." Doering said that after the three years, the $12 million may not even be included if the formula is done correctly. One of the most vocal critics of the formula, he feels that it will have dire consequences for the Middletown district, which comprises 18 schools. Doering said that some of his objections stem from the fact that there is no acknowledgement in the formula for districts like Middletown that currently spend less per pupil than state averages. According to the new formula, Middletownwill see a 2 percent increase in state aid for the 2007-2008 school year over the previous year's allocation, from $20,942,905 to $21,361,763, an increase of $418,858. The proposed new funding formula, which the governor formally unveiled onDec. 13, changes the way state aid to local school districts is apportioned. Previously, according toDoering, funding was primarily determined through a school's location, with wealthier areas receiving less aid and poorer ones receivingmore. This has led to some criticism from administrators in districts such asMiddletown, because even in areas where the average income is higher, there may still be students with special needs who require extramoney to educate them. To this end, the new formula is a fundamental shift in the state aid calculation, from a district's location to how many disadvantaged students a district is educating, he said. The basicmechanismbehind the formula is a base rate given for every student in a district depending on grade level, determined by howmuchmoney the state feels is necessary to adequately educate a child. For elementary schools, this base rate is $9,649 per pupil. Formiddle schools, it is $10,035. For high schools, it is $11,289. Students in vocational schools, meanwhile, will net a base rate of $14,789. On top of these base amounts would be additional funding for each student who is classified as at risk- of limitedEnglish proficiency (LEP), combined at risk and LEP, in special education, or requiring speech therapy. "Our categorical transportation aid and special education aid are less thanwhat they were five years ago under CEIFA (the Comprehensive Education Improvement and Financing Act)," Doering said. "It amazes me that we are receiving less. It defies all logic." Further aid, depending on need, is also provided for security, transportation, equalization and adjustment. Every district, for at least one year,would be receiving at least a 2 percent increase in state aid andwould be guaranteed to not lose state aid for at least three years. Middletown has received theminimum2 percent increase; an amount that Doering feels is based on percentages that are skewed. "They don't take out top and bottom 5 percent of income earners, so Middletown's numbers are skewed and don't reflect an accuratemedian income," Doering said. "They are estimated enrollments that don't mirror reality." Doering said that areas such asNavesink River Road skew the median so that the wealth calculator that theDepartment ofEducation uses makes Middletown seem wealthier than it actually is. "Theway the state determines awealthy district is that they equalize property values with income in the municipality and they compare that to the rest of the state," Doering said. "How much wealth is in your municipality? There are some large swings of wealth as there are some very wealthy people that dramatically skew the numbers. It isn't reasonable to benchmark the communities wealth with those numbers." Another problem Doering has with the formula is that it projects the student population for the 2008 school year at 9,918, a 2 percent decrease fromthe year before. For the 2007-2008 school year, the current student population is 10,213. "That's a dramatic difference," Doering said. "They are basing our aid off a number that is incorrect." Doering said that Middletown is being penalized for not spending as much per student as other districts. "We spend approximately $1,300 per student less than the state average," Doering said. "We have over 10,000 students. That's $13 million less than the state average, yet there is no acknowledgement." Transportation costs are another item in the formula Doering takes issue with. Middletown spends over $9 million on transportationmost ofwhich ismandated by the state but the aid provided is only $2.4 million. "It's just one of those circumstances where the vast majority of our budget is mandated," Doering said. "What we are receiving doesn't come close to fully helping to pay for this."