Preschool Expansion Component of School Funding Formula

Association for Children of New Jersey

January 2008

New Jersey’s new school funding formula was passed by the Legislature on January 7, 2008, signed into law by Governor Corzine on January 13, 2008, and includes significant expansion of preschool throughout the state.

The provisions of the law require that:

1) Full-day, high-quality preschool (six-hour day) will be provided to:

 All 3 and 4-year-old children in district factor group districts A and B (about 102 districts).
 All 3 and 4-year-old children in CD districts where 40% or more of their children are eligible for free and reduced lunch (185% of poverty, which is about $37,000 for a family of 4)
 On a per pupil basis for children eligible for free and reduced lunch in all other districts.

2) Full program implementation is 90% of eligible children (as it is in the Abbott districts)

3) According to the legislation, “preschool education shall reflect the cost of the pupil’s placement in either a district program, a licensed child care provider program or a Head Start program,” calculated at the following per pupil levels for the 2008-2009 school year:

 $11,506 for in-district programs
 $12,934 for licensed child care programs
 $7,146 for Head Start programs

4) Aid increases in subsequent years will be based on the Consumer Price Index

5) Preschool will be fully state-funded with districts required to appropriate education aid in a special revenue fund for expenditure. If a district has met its enrollment plan and the program quality standard, it may seek approval from the Commissioner of Education to use the preschool funds for K-12 expenditures. Approval is on a one-year basis and subject to annual approval of the commissioner.

6) Program implementation will be phased-in based on the districts current preschool program, if any. For districts not currently providing preschool, the 2008-2009 school year will be the preschool planning year. Districts are required to develop a five-year plan for full implementation in the 2013-2014 school year.

7) The Commissioner of Education shall adopt the preschool quality standards.

When fully implemented, it is estimated that 20,000 more children will be enrolled, bringing preschool enrollment to 60,000 children. Funding will increase approximately $330 million, bringing total funding for preschool to about $850 million.

Issues that were not addressed in the legislation and must be either included in the Commissioner’s emergency regulations or focused on independently:

• Defining a high quality standard that addresses teacher credential, class size and ratio, curriculum and facilities.

 Developing a process that requires districts to assess local community programs for potential partnerships in preschool implementation.

 Providing necessary supports during the planning and phase-in implementation years for community programs and their staff to attain the quality standard. This includes allowing time for teachers to return to school to obtain their bachelor’s degrees and P-3 certification, providing scholarship dollars and providing programs time and support to improve classroom quality.

 Outlining a clear standard for when and how districts may use the preschool funding for K-12.

 Providing guidance on required outreach for the districts to achieve full enrollment (90% required by the law).

 Providing adequate support for the DOE’s Division of Early Childhood to continue to play a critical role in districts regarding implementation, technical assistance and accountability.

 Addressing issues regarding ancillary services that are components of the Abbott programs including wraparound, family workers and early childhood nurses.

 Articulating the role of family engagement.

If you have additional questions, please contact Cynthia Rice at crice@acnj.org or at 973-643-3876.

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