Money and the Schools

Money and the Schools. WSJ Editorial
More isn't better.
WSJ, May 30, 2009

Brace yourself, because there's good news on education -- and in New Jersey of all places. On Thursday, the New Jersey Supreme Court let stand a 2008 law replacing a judge-made funding formula that had been in place since the 1980s. Under the old formula, created by the 1981 Abbott decision, 31 of the state's poor school districts received the lion's share of state education funding. Funding in these so-called "Abbott districts" has been exceeding $17,000 per student, well above the state average of $13,500.

Test scores have improved among younger students, but University of Arkansas professor Gary Ritter says education reformers had hoped for better results in earlier years of the program given that urban districts like Camden are now spending more than rich suburbs. Derrell Bradford of Excellence in Education for Everyone says scores at the lower grades look better because testing has been dumbed down, and he attributes any improvement to the fact that Abbott students can use vouchers for preschool. By any measurement, Abbott students still lag behind those in districts spending far less per student.

New Jersey taxpayers pay the highest property taxes in the country -- $7,000 on average -- to fund their own schools, and then they pay state income taxes to further fund Abbott districts. Under the new law, state funds will be sent automatically to wherever the needy kids are, even if they attend suburban schools. The real reform would be to let parents decide which schools deserve their kids and allow the funding to follow. But at least we've had one more object lesson that more money doesn't mean better schools.