Robinson v. CahillRobinson v. Cahill
This action challenges the constitutionality of the system of financing elementary and secondary public schools of New Jersey. The case is similar to cases in other states, such as California, Minnesota and Texas, where conflict with the Fourteenth Amendment equal protection clause was asserted recently.1 Also present are questions of state constitutional law, namely, whether the equal protection and education clauses of the State Constitution are violated by New Jersey‘s statutory financing scheme.
Plaintiffs in this action include residents, taxpayers and officials of Jersey City, Paterson, Plainfield, East Orange and the Township of Berlin (Camden County).2 They assert claims on behalf of all persons in New Jersey who have similar interests. Defendants include branches of the state
The system of financing public education in New Jersey relies heavily on local property taxes. It produces wide disparities in educational expenditures. Plaintiffs contend that public school education is a state function which must be afforded to all pupils on equal terms. They contend that a “thorough” education is afforded to some pupils but denied to others, and that the system discriminates also against property owners who are taxed at different rates throughout the state for the same public purpose.3
The Attorney General, defending the constitutionality of our state statutes, concedes that differences in expenditures exist, and that inadequacies are present in some schools. He contends, however, that the statutory system is constitutional; that the “State School Incentive Equalization Aid Law,” commonly known as the Bateman Act,4 will increase state aid for certain deprived districts and will greatly reduce discrepancies caused by district wealth variations, that unequal expenditures do not necessarily prove unequal education, and that local control and responsibility to meet
Public schools are financed primarily by local real property taxes augmented by various forms of “state aid,” such as “formula aid,” transportation aid, school building aid, lunch aid, etc., and federal aid. When this action was commenced in 1970, the State School Aid Law of 1954, as amended, was in effect. L. 1954, c. 85, as amended;
Under the foundation program formula each district received equalization aid of $400 per pupil less its “local fair share,” and in any case not less than $75 (minimum aid) per pupil.
Equalized valuations is the term applied to the true market value of taxable real property in a district as determined by the State Director of the Division of Taxation through studies of recent sales.
Our principal concern is the Bateman Act, which was passed while this action was pending. The complaint was amended to bring that act under attack. However, the foundation plan is still relevant because the Legislature funded the Bateman Act for 1971-72 at a “20%” level, defined as that amount which would have been paid in 1971-72 under the foundation plan, plus 20% of the difference between that aid and Bateman Act aid if Bateman were fully funded.
The details of the Bateman Act will be discussed later. This introduction is simply to show that the increase in formula aid under the Bateman Act in the first year has been negligible in most districts. Some poor districts received significant increases, however, especially those who benefited by the weighting factor in the formula for AFDC children (aid to families with dependent children.5 However, relatively few school districts had an increase of $50 or more per pupil in 1971-72. Among the larger increases were $67.48 for Asbury Park, $80.41 for Camden, $109.82 for Newark, $98.51 for Trenton and $54.58 for Jersey City.
In 1971-72 the principal items of state aid allocable to current expenses — formula aid under Bateman ($245,013,900), state transportation aid ($31,270,200), atypical pupil aid ($32,688,900), school lunch ($6,500,000) and vocational education aid ($3,479,000) — constitute approximately 21% of the aggregate of all current expenses. Current expenses for all districts are approximately $1.5 billion.6
Fully funded and implemented, the Bateman Act would significantly improve upon the foundation plan in equalizing local revenue-raising power. However, school costs have been increasing at a rate of approximately 10% per year. The average increase is close to $100 per pupil annually. See Basic Statistical Data of New Jersey School Districts, Bulletin A71-2 (July 1971), published by the New Jersey Education Association, hereinafter referred to as NJEA Bulletin, at page 14. Thus, increases in Bateman formula aid at “20%” increments per year will not offset the annual rise in school costs except, possibly, in a few districts. Accordingly, the statistics in Schedule A, annexed hereto, based in part on pre-Bateman data and in part on post-Bateman data, furnish a reasonable basis for evaluating the present system.
I. THE SCHOOL SYSTEM
There is also an artificial aristocracy, founded on wealth and birth * * *. The artificial aristocracy is a mischievous ingredient in government, and provision should be made to prevent its ascendency.
* * * At the first session of our legislature [in Virginia] after the
Declaration of Independence, we passed * * * laws, drawn by myself, [which] laid the ax to the foot of pseudo-aristocracy. And had another which I prepared been adopted by the legislature, our work would have been complete. It was a bill for the more general diffusion of learning. This proposed to divide every county into wards * * * like your townships; to establish in each ward a free school for reading, writing and common arithmetic; tо provide for the annual selection of the best subjects from these schools, who might receive at the public expense, a higher degree of education at a district school * * *. Worth and genius would thus have been sought out from every condition of life and completely prepared by education for defeating the competition of wealth and birth for public trusts.
— Thomas Jefferson, in a letter to John Adams, 1813.7
There are approximately 600 separate school districts in the State. Approximately 300 operate elementary schools only; approximately 200 districts operate a complete system of elementary and secondary schools, and 45 districts operate secondary schools only (such as grades 7-12 or 9-12). The balance includes 21 nonoperating districts (sending pupils to other districts and paying tuition), 20 county vocational districts, and 3 districts that operate special classes only for handicapped children.
There are 51 type I districts (
If the budget adopted by the governing body in a type I or type II district is less than that proposed by the board of education, that board may appeal to the State Commissioner of Education. The Commissioner may then restore part or all of the budget cuts “within the limits оriginally proposed by the board of education” if he finds those funds are necessary to assure a “thorough and efficient” school system. See East Brunswick Tp., supra, 48 N.J. at 107. In no case has the Commissioner fixed a budget which exceeded the local board‘s proposed budget, although he may have the power to do so.10
Thus it is the duty of the Commissioner to see to it that every district provides a thorough and efficient school system. This necessarily includes adequate physical facilities and educational materials, proper curriculum and staff and sufficient funds. [55 N.J. at 506]
The State Board has adopted regulations which offer consulting services for the purpose of improving elementary school programs. However, no minimum curriculum or standards of achievement for elementary schools have been fixed by regulations, although authorized by statute.
More control is exercised over secondary education. Local boards of education must develop a high school program and submit it to the State Board for approval.
The Commissioner has the power to direct the abandonment of part or all of a school building and to order alterations.
But the net of practical considerations is that the quality of education has been left largely in local hands. Local school boards and municipal officials obviously consider not only educational needs but also the sentiment of the taxpaying public. School budget rejections by voters are commonplace. In 1969 a record number of budgets were rejected, namely, 170 of 524, or 32.4%. N.J. Model Cities Report, supra, at 205. Also, bonds for construction of school facilities have been voted down in 41% of all elections in 1969-70. Harold P. Seamon, Jr., “Bond Sales for Public School Purposes in New Jersey,” School Board Notes (Sept/Oct. 1971) at 20. As a practical matter, therefore, budgets fixed by local boards have restrained the Commissioner‘s enforcement of our constitutional and statutory requirements for a thorough education. Local property taxing power is the primary force under public school education in our present system.
II. FISCAL COMPARISONS
The people of this State constitute a commonwealth, and in the prosperity of this commonwealth all the citizens have an equal interest. * * *
New Jersey recognizes the wisdom of this in assessing a uniform rate of tax upon each citizen for the support of her schools, in proportion to the amount of property he possesses, and in apportioning the amount thus raised to the several school districts on the basis of their school census. * * * Every true man * * * should be proud of his State * * *. He should rejoice to see all her children receive an education, whether they live in counties made wealthy by cities and by concentrated manufacturing industries, or in those still poor, with their primitive forests. If he has wealth, he should willingly give his share for the education of the children of the poor * * *.
— Ellis A. Apgar, State Superintendent of Public Instruction, N.J. School Report, 1878.
The financial effects of our present system are shown in Appendix A. Appendix A includes approximately 25% of all operating districts in the State. Statewide averages and total enrollment are shown on the first line of page 1. Districts are arranged in each county in the order of highest to lowest in per pupil equalized valuations. The most recent data (1971-72) has been used where available. Some data which is two years old (1969-70) had to be used because more current data was not available. For example, teachers’ salaries per pupil are 1969-70 figures. Since expense per pupil figures are for 1971-72, teachers’ salary costs must be increased by approximately 20% because of inflation in order to correlate teachers’ salary costs with current expenses. See NJEA Bulletin, at 14.
Districts listed in Schedule A include in most cases the highest and lowest in equalized valuations per pupil in each county, and a random sampling of districts in between, and one or two regional districts (column 1). Current expense per pupil, estimated, 1971-72 (column 2) includes the cost of instruction, administration, transportation, maintenance, fixed charges (such as insurance costs and pension contributions) and certain sundry accounts. Debt service is not included. (Total statewide debt service in 1971 is estimated at $130 million, or $87 per pupil.) Professional staff per 1,000 weighted pupils, 1969-70 (column 5), does not use
The most obvious aspect of Appendix A is district to district diversity. However, diversity alone may not prove differences in the quality of education. Many factors may account for differences in expenditure. Districts spend more for high school than elementary school programs; variations in the cost of living across the State may affect the cost of education; districts vary in size (Greater Egg Harbor Regional High School district is over 339 square miles while Victory Gardens in Morris County is 0.14 square miles). Transportation costs and certain fixed costs and capital expenditures may represent a higher per pupil expense in one district than another. Other factors may affect efficiency and costs, so that higher costs will not always connote better education. Moreover, differences in class size (as reflected in column 3 of Appendix A) may not appreciably affect the quality of education. Nor is teacher performance necessarily a direct reflection of his or her salary level.
Nevertheless, Appendix A shows a distinct pattern in every county in the State. In most cases, rich districts spend more money per pupil than poor districts; rich districts spend more money on teachers’ salaries per pupil; rich districts have
Figure I, on page 239, illustrates the relationship between
Other characteristics tend to vary directly with valuations. Thus, with a $1.43 school tax rate compared to $3.69 in Newark, Millburn has more teachers per pupil than Newark, spends more for teachers’ salaries (1969-70) per pupil ($685 to $454), and has more professional staff per weighted pupil (61 to 53). In Camden County, Haddonfield and Audubon Park compare as follows: 18.9 to 27.2 pupils per teacher, $478 to $293 in teachers’ salaries (1969-70) per pupil, and 55 to 44 in professional staff per 1,000 weighted pupils. Thus, Haddonfield gets more with a $2.33 tax rate than Audubon Park with a $5.59 tax rate. In Monmouth County, Deal and Union Beach compare as follows: 14.8 to 26 pupils per teacher, $717 to $328 in teachers’ salaries (1969-70) per pupil, and 74 to 42 in professional staff per 1,000 weighted pupils. Both are grades K-8 districts.
Winfield Township in Union County is only 0.17 square miles in area. It has the lowest equalized valuations per pupil in the State, namely, $3,921. Despite this, its current expense рer pupil for 1971-72 is $1,253, which is well above the state average. This includes approximately $500 per pupil in state aid. In 1971 the equalized school tax rate was $15.11 and the total equalized municipal tax rate was $20.14. This represents an extraordinary tax effort. It means that a taxpayer in Winfield Township pays an amount equal to the value of his residence every seven years just to raise money for school purposes, or every five years to raise money for school and all other municipal services. (A tax
Winfield Township was incorporated by L. 1941, c. 360, composed of land lying in part in the City of Linden and, in part, the Township of Clark. Certain other small districts which have been created by legislative action also appear to be disadvantaged, economically. Victory Gardens in Morris County (0.14 square miles), incorporated by L. 1951, c. 259, has $13,023 in equalized valuations per pupil; and Audubon Park in Camden County (0.15 square miles), incorporated by L. 1947, c. 418, has $4,596 in equalized valuations per pupil. Their respective current expenses are $999 and $771 per pupil; in 1971 they had equalized school tax rates of $4.52 and $5.59, respectively. There was no evidence offered at trial directed specifically to these small districts. However, counsel have stipulated that a brief description of the origin of Winfield Township as revealed in an unpublished study may be included in the record.12
| EQUALIZED VALUATIONS PER PUPIL | NUMBER OF DISTRICTS | NUMBER OF PUPILS |
|---|---|---|
| Below $10,000 | 4 | 10,593 |
| $10-20,000 | 38 | 160,631 |
| $20-30,000 | 107 | 288,611 |
| $30-35,000 | 59 | 154,053 |
| $35-40,000 | 64 | 151,419 |
| $40-45,000 | 55 | 214,498 |
| $45-50,000 | 68 | 168,109 |
| $50-60,000 | 57 | 148,486 |
| $60-90,000 | 84 | 163,144 |
| $90,000 plus | 42 | 25,743 |
| EXPENDITURES PER PUPIL | NUMBER OF DISTRICTS | NUMBER OF PUPILS |
|---|---|---|
| Below $700 | 14 | 13,391 |
| $700-800 | 54 | 83,917 |
| $800-900 | 75 | 274,881 |
| $900-1,100 | 248 | 631,975 |
| $1,100-1,200 | 65 | 235,522 |
| $1,200-1,500 | 106 | 215,948 |
| Over $1,500 | 16 | 29,653 |
Other comparisons can be made. Industrial and commercial property distributions were studied by Neil Gold, Director of the Suburban Action Institute. He testified that 112 municipalities with 11% of the State‘s population hаd commercial and industrial property almost equal in value to that possessed by a group of municipalities containing 39% of the State‘s population. The first group raised only $62 million in taxes compared with $262 million by the second group. The first group raised these taxes at a tax rate under 2% while the poorer groups taxed at rates of 6% or
| District | Commercial Property (millions) | 1970 Population (thousands) | Black & Spanish Speaking Pupils (1969) | Equalized School Tax Rate (1971) |
|---|---|---|---|---|
| Edison | $272 | 67 | 3.1% | 1.16 |
| Paramus | 259 | 28 | 0.0% | 1.90 |
| Union Tp. | 177 | 53 | 11.3% | 1.32 |
| Bridgewater-Raritan | 162 | 30 | 0.9% | 2.05 |
| Berkeley Heights | 137 | 13 | 0.1% | 2.04 |
| North Brunswick | 115 | 17 | 3.0% | 1.59 |
| Mahwah | 104 | 11 | 2.0% | 1.63 |
| East Hanover | 85 | 7 | 0.2% | 1.73 |
| Englewood Cliffs | 65 | 6 | 0.2% | 1.20 |
| TOTAL | $1,376 | 232 | ||
| Newark | $665 | 380 | 81.7% | 3.69 |
| Jersey City | 298 | 253 | 56.5% | 2.82 |
| Paterson | 189 | 143 | 63.1% | 2.57 |
| Camden | 130 | 101 | 70.8% | 2.57 |
| Trenton | 109 | 102 | 73.2% | 2.80 |
| TOTAL | $1,391 | 979 |
Wealthy suburbs are able to attract industry from central cities by preferential tax rates. The erosion of the central city tax base makes it more difficult for these cities to raise revenues for school and municipal purposes. This condition has developed largely in the last 20 years. During that period, in 39 major metropolitan areas of the country 85% of all industrial and commercial growth, measured by jobs, has taken place in the suburbs. In New Jersey the rate has
| ENROLLMENT | EQUALIZED VALUATIONS PER PUPIL | |
|---|---|---|
| CAMDEN | ||
| 1960-61 | 17,829 | $17,777. |
| 1969-70 | 19,915 | 16,487. |
| JERSEY CITY | ||
| 1960-61 | 31,645 | 26,570. |
| 1969-70 | 37,428 | 26,675. |
| PATERSON | ||
| 1960-61 | 21,956 | 21,000. |
| 1969-70 | 25,874 | 23,021. |
| PLAINFIELD | ||
| 1960-61 | 8,529 | 26,771. |
| 1969-70 | 9,116 | 30,943. |
| EAST ORANGE | ||
| 1960-61 | 8,797 | 37,533. |
| 1969-70 | 10,148 | 32,152. |
| STATE | ||
| 1960-61 | 1,055,085 | 30,112. |
| 1969-70 | 1,448,686 | 38,172. |
Rising tax rates in cities compel compromises in funding services for education and other purposes. Nor is this trend likely to be reversed in the near future. What is more important and harmful is the separation of classes of people which has occurred in recent years. Social isolation aggravates the impact of economic differences in education. See Booker v. Board of Education, Plainfield, 45 N.J. 161, 170, 171 (1956).
The decision in this case, however, does not turn upon the special needs of older, large cities. The problems presented by the school funding system in New Jersey confront many poor suburban and rural districts as well.
Thirty-two school districts in New Jersey with an enrollment of less than 2,000 pupils each have equalized valuations per pupil under $20,000; 71 more school districts with less than 2,000 pupils each have between $20,000 and $30,000 in
Table II above shows that only 21% of all school districts, with 17% of the statewide enrollment, have current expense budgets of $1200 or more. On the other end of the scale are 143 districts, with 372,189 pupils, or 25% of statewide enrollment, with current expense budgets under $900. One district, Tabernacle Township in Burlington County, a K-8 district with 511 pupils, has a current expense budget of $561 per pupil. This is the lowest expenditure in the State. As will be shown later, the Bateman Act offers the least аid to poor rural and suburban districts which have a low AFDC population component.
III. QUALITY OF EDUCATION
“Come, Tom,” said Mother. “Are you ready for school? Are you ready, Betty? Run to school, Tom. Run fast, Betty.”
— Ousley and Russell, On Cherry Street (a Ginn “basic reader“.)
The quality of elementary and secondary education in New Jersey probably runs from good to excellent in the vast majority of school districts. In some it is not simply poor, it is inadequate. Unfortunately, this case deals with the problems we have, not our successes.
If nationwide comparisons are of any help, 1970-71 figures show that New Jersey ranks high, third in the nation, in current expenditure per pupil. Only New York and Alaska were higher. New Jersey ranked sixth in average salaries of secondary school teachers ($10,250) and eighth in average salaries of elementary school teachers ($9,875). Research Division, National Education Association, Rankings of the States, 1971 (Research Report 1971-R1), at 21, 22, 62. These rankings are consistent with the wealth of New Jersey residents: third in personal income per child of school age ($17,087) and seventh in per capita personal income ($4,241) in 1969. Ibid. at 30, 32.
The criteria proposed by the State Board and the Permanent Commission (see note 3) for classifying districts under the Bateman Act (to be discussed later) include input and output measurements. In budget appeals the Commissioner himself decides on a case by case basis what funds are necessary for a “thorough” education and what are not. In doing so he looks at the proposed use for the funds and the specific needs claimed. He also examines statistics in those categories which are included in Schedule A as some general gauge of the quality of education in the system. For example, in the 1969 budget appeal by the Board of Education of Englewood Cliffs, seеking to restore funds rejected by the voters and the governing body, the Commissioner noted that Englewood Cliffs was among the highest in expenditures per pupil, salary schedules, facilities and equipment, and had one of the lowest pupil-staff ratios in the State. New Jersey School Law Decisions (1969), at 105. It is one of the few districts with closed-circuit television. The Commissioner found that these were the products of high community aspirations and a very favorable tax base. The Commissioner decided that Englewood Cliffs was spending enough, and he refused to restore any of the budget cuts.
The principal ingredient in good education is good teachers. This, of course, is hard to measure statistically. One witness testified that high intellectual and verbal skills of a teacher are invariably associated with good teaching and good results. However, there are no available statistical comparisons of this quality in our teachers. Other measures have to be used for the purposes of this case. We have already noted that poorer districts have fewer teachers and less professional staff per pupil. A great enough difference may make the task of some teachers more difficult, allowing for less specialization and less preparation time for each subject. Some evidence was also submitted showing that wealthy districts have a higher percentage of teachers with advanced degrees. For example, the percentage of teachers with a master‘s degree in Millburn is 47%, in Princeton Regional 41%, and in Englewood 39%. In Jersey City it is 23%, Newark 18%, and Camden 13%. The Pilot Study, supra, at 27, found that only one school district with equalized valuations of less than $30,000 per pupil in 1965 had a staff of which 30% or more had a master‘s degree. The evidence also shows that there is more teacher turnover in the poorer districts, with teachers leaving for more attractive school systems in wealthy suburban areas. These aspects allow some correlation between the quality of teaching and the wealth of the district, even though one does not need a master‘s degree to be a good teacher.
Other input factors include school buildings, equipment, text books and library facilities. There is ample evidence to show the correlation between wealth and the quality of these facilities, and that severe inadequacies exist in many poor districts.
In Paterson 7 of 26 elementary schools in use were built between 1887 and 1899. Many buildings do not meet state standards for lighting and safety equipment. Only two or
In the City of Camden 8 of 34 schools in use (over 20%) were built between 1874 and 1897. Some are three-story wooden frame structures. In some, lighting, ventilation and toilet facilities are inadequate. A study of the Camden school system by the State Department of Education was compiled in November 1969. The report, here called the Camden Survey, concludes at page F-39 that almost all elementary schools in Camden are deficient in facilities for desirable programs such as art, music, science, home economics, etc. Also needed are suitable libraries and special services such as remedial reading, speech therapy and psychological assistance. Camden has 23 school buildings on sites of one acre or less. This precludes outdoor educational programs.
Again, deficiencies are not limited to schools in the older cities. Inadequaciеs due to lack of financing exist in other areas of the state. For example, Pine Hill is a K-6 school district in Camden County, with 874 pupils in three schools. Pine Hill may fall somewhere between a rural area and a suburb. Pine Hill has equalized valuations per pupil of $13,354 and a school tax rate of $3.52. Even with state aid of over $300 per pupil, the present current expense budget is only $691 per pupil. Dr. Mark Hurwitz, Executive Director of the New Jersey School Boards Association (see
Dr. Hurwitz had to serve in two capacities, school superintendent and the principal of one school. There was no trained librarian in the system. In one school there was a closet with books that served as a library. Some science text books dated back to the 1940‘s, before astronauts had been heard of. There was no guidance counsellor or speech therapist. A psychologist was available one day a month. Special program aids were virtually nonexistent. Pupils who were either gifted or below average could not get special instruction or materials, unless they qualified as handicapped, because Pine Hill could not afford options to meet special needs. Teacher recruitment was difficult. Five teachers operated on emergency certificates without a college degree. Two such teachers have taught in the system for more than 20 years. Not one teacher had an advanced degree.
Pupils from Pine Hill went into the Lower Camden County Regional district (grades 7-12) which took pupils from seven elementary school districts. Those from Pine Hill had difficulty competing with other pupils, even with those from districts that were not much wealthier. A large percentage of Pine Hill pupils scored below national norms in tests for reading achievement and basic skills. Dr. Hurwitz concluded that the education in Pine Hill was inadequate due to insufficient funds.
Other evidence was offered to show inadequate education, both in terms of input and output. In Jersey City tests showed that average results at the end of the first grade were at the national norm but fell substantially below the national norm at the end of the seventh grade. A similar decline was shown by tests in Plainfield. This was interpreted as a failure of the system, since pupils able to learn at national norm levels do worse after being in the system for a number of years. There was evidence that a substantial number of pupils graduating from inadequate school systems
In Camden, in 1968-69, 287 of 945 teachers had substandard teaching certificates — 86 in secondary schools and 201 in elementary schools. Camden Survey, at P-4. There were only two Puerto Rican teachers in a system with 2,000 Puerto Rican students. Of 1,879 nonEnglish speaking children only 240 received instruction in English. In Paterson there are eight bilingual teachers for 4,000 Spanish-speaking children, a ratio of 1 to 500.
Naturally, the focus here is upon glaring, exceptional deficiencies. But indications are that they may occur more often than we would like to believe. It is difficult to imagine that in the 1960‘s a history book used in one lower school did not mention World War II, because, when the book was published, that war had not yet taken place. But such was the testimony of a former teacher. (How much can new books cost?) Also, in one school, classroom books could not be taken home because, old and torn, there was only one set of books, and several classes had to share them on the same day. Accordingly, if this opinion does not discuss theories of education, the importance of early schooling, or tenure аnd lock-step salary ranges and their effects upon teacher performance, it is for obvious reasons.
Not all shortcomings are the fault of the school system. The learning of a pupil from a deprived environment is impeded by many factors. For example, many pupils come to school hungry, or have uncorrected sight or hearing defects that would interfere with learning. Some students have migrated from even more inadequate school systems. But there is ample evidence in the record that these limitations can be offset significantly by improved educational offering. Better physical examinations and follow-up is a simple example
Professor Henry S. Dyer, of the Educational Testing Service of Princeton, New Jersey, testified that pupil achievement is positively related to per pupil expenditure for instructional purposes. He estimated that the relationship is, roughly, on the order of .4 in correlation coefficient. This means that by his estimate per pupil expenditure is associated with about 16% of the variation in average pupil achievement. This is a positive but not a strong correlation. Others, including Guthrie and Levin, apparently see a higher degree of correlation. Professors Levin and Guthrie do not say that more money alone will make a difference. More money properly spent on proper programs can make a difference. Higher teacher salaries should enable a district to select teachers and supporting staff who are better fit for the needs of its pupils. More money can give districts options to attack their problems in ways not available to them now.
I am aware of the qualified doubts about the dollar-input-output relation raised by the so-called Coleman Report. J.S. Coleman, et al., Equality of Educational Opportunity (U.S. Printing Office, 1966). The report concludes (at 325) that family background and the social composition of the student body are the primary determinants of achievement in school.14 The conclusions of the Coleman Report
Chapter 4 of Schools and Inequality, supra, reviews 17 studies which attempt to determine the effects of schooling exclusive of a pupil‘s social environment. The authors note the difficulty of isolating environmental and congenital characteristics which affect a student‘s performance. These influences have a strong impact on the student even before he enters school for the first time. Nevertheless, a number of studies conclude that school services are significantly related to pupil achievement. One of the early studies performed by the Educational Testing Service of Princeton16
Dr. Dyer submitted charts (P-23 in evidence) which show a correlation between per pupil expenditures and various gauges of performance, such as SAT scores and truancy rates. Figure VI of this exhibit shows the results of a controlled experiment in Hartford, Connecticut (“Project Concern“) in which 266 elementary school children selected at random were transferred from five depressed inner city schools to 35 elementary schools in affluent suburbs. A group of 305 similar students remained in the inner city schools to serve as a control group. Results were then tested by gain or loss in I.Q. scores. The experimental group transferred to the suburbs presented a median gain for pupils in six grades (1 through 6) from the spring of 1967 to the spring of 1968 of 5.2 as compared with a median gain of 3.2 for the inner city group. Five of six grade groups transported to the suburbs made significantly greater gains in I.Q. than their counterparts in the city. (One group, grade 5, declined for unexplained reasons.) Grade 1 pupils in the suburbs gained 8.2 as compared with 3.0 for the city group.
Other testimony supported similar conclusiоns. Some studies show that students in depressed areas whose schools
That dollars can make a significant difference in pupil performance is the premise of the Camden Survey, supra, made by our State Department of Education. The Mancuso Report, supra, also concludes (at 9) that while “many communities are unable to adequately educate their youngsters, it is equally clear that many others are eminently successful. * * * Although there are some excellent small districts in the state, almost all evidence points to a correlation between enrollment, wealth, quality education and efficiency.”
Limitations in this type of case, dealing with the system as a whole rather than problems of a given district, make it impossible to treat many aspects in the dollar-quality equation. To what extent can the consolidation of districts expand the range and quality of instructional opportunity without greatly changing costs? See Mancuso Report, supra. To what extent are high drop-out rates in central cities a reflection of unstimulating instruction, or other forces? Why do students from our deprived schools who want to go to college score appreciably lower in their SAT‘s than students from wealthy suburban schools? Should teachers get “combat pay” in some schools? Vocational training has not been explored in the case, but statistics in the NJEA Bulletin, p. 31, suggest that county vocational schools have not reached enough pupils who could profit by this type of training. There was testimony on other points that I cannot dwell upon. One example is the self-fulfilling negative attitude of middle-class teachers toward students of low socio-economic status. Also discussed was the low self-esteem of children from poor neighborhoods who begin their first contacts with American government by entering ancient, dilapidated buildings. Perhaps they ask themselves, “Is this what my state thinks of me?” (In school they are given a primer
Questions are asked because we do not have all the answers. Some conclusions, however, can be drawn on the specific issues of this case. Assistant Commissioner Edward Kilpatrick testified that his office had participated in the Camden Survey, supra, and wrote the following:
With this dependence upon local property taxes for the support of such services in New Jersey, it is inevitable that the children in the poorest communities do not have the same educational opportunities as those in the more affluent districts. [At H-2.]
The same report concluded (at III-3) that state aid under the foundation program is not sufficient to permit substantial improvement.
Clearly, a large number of New Jersey children are not getting an adequate education. This is caused in part by insufficient funds in many districts despite high taxes. On the other hand, many districts provide superior education with less tax effort. More money should make a significant difference in many poor districts. However, the problems in older cities with a large minority population are more complicated. It is too much to expect that our school system alone can solve all these problems. But much can be done, and doing more will cost more. Education is no exception to this fact of life.
IV. THE EDUCATION CLAUSE AND THE BATEMAN ACT
Between the idea
And the realityBetween the motion
And the act
Falls the Shadow
— T.S. Eliot, “The Hollow Men.”
A. THE BATEMAN ACT
The essential features of formula aid under the Bateman Act consist of “minimum support aid” and “incentive equalization aid.”
“Minimum support aid” and “school district guaranteed valuation” are both based upon the number of resident weighted pupils of the school district.
Kindergarten pupils, .75 units
Elementary pupils (grade 1 through grade 6), 1.0 units
Additional weight is given for AFDC children (children in families residing in the school district who receive assistance under a program of aid to families with dependent children) between the ages of 5 to 17, inclusive, who reside in the district. Whether attending school or not, each such child counts as an additional .75 units in determining the number of weighted children for the school district.
“State aid” under the Bateman Act is defined as minimum support aid, incentive equalization aid, transportation reimbursement, atypical (handicapped) pupil reimbursement, county aid and vocational school aid.
“Incentive equalization aid” is given to a district whose actual equalized valuation per pupil is less than the guaranteed valuation per weighted pupil based on the district‘s classification. In a basic district total “guaranteed valuation” is a sum equal to $30,000 multiplied by the number of resident weighted pupils of the school district. The guaranteed valuations are to be increased in increments of $3,750 for each classification, reaching a maximum of $45,000 per weighted pupil in a comprehensive district.
The formula for determining incentive equalization aid is set out in
Table V which follows depicts various tax rates that would obtain in a school district depending upon the current budget and the equalized valuations of the district. For purposes of illustration I have assumed districts with equalized valuations of $20,000, $30,000, $45,000 and $60,000 per pupil, and I have assumed that a district chooses to spend $1,000, $1,200 or $1,400 per pupil. The weighting factor
| DISTRICT EQUALIZED VALUATION Per Pupil | ANNUAL PER PUPIL EXPENDITURE | |||||
|---|---|---|---|---|---|---|
| $1,000 | $1,200 | $1,400 | ||||
| Tax Rate Basic | Tax Rate Comp. | Tax Rate Basic | Tax Rate Comp. | Tax Rate Basic | Tax Rate Comp. | |
| $20,000 | 2.51 | 1.56 | 3.12 | 1.97 | 3.72 | 2.37 |
| $30,000 | 2.51 | 1.56 | 3.12 | 1.97 | 3.72 | 2.37 |
| $45,000 | 1.84 | 1.56 | 2.29 | 1.97 | 2.73 | 2.37 |
| $60,000 | 1.38 | 1.29 | 1.71 | 1.62 | 2.05 | 1.96 |
| ADJUSTED FOR 1.434 WEIGHTING, INCLUDING AFDC18 | ||||||
| $20,000 | 1.84 | 1.12 | 2.31 | 1.43 | 2.77 | 1.74 |
| $30,000 | 1.84 | 1.12 | 2.31 | 1.43 | 2.77 | 1.74 |
Using a basic district as an example, with equalized valuations of $20,000 per pupil, calculations under the formula can be simplified as follows:
Select the current total expense per pupil ($1,200); subtract $121 (minimum aid per pupil of $110, raised 10% due to a 1.10 weighting factor) and also subtract $50 (representing other revenue, such as transportation aid). This leaves $1,029 to be raised by local taxes and state equalization
Under the Bateman formula fully funded, excluding an AFDC weighting factor but assuming an average weighting factor of 1.10, basic districts are in effect guaranteed equalized valuations per pupil of $33,000. Districts with $33,000 or less in equalized valuations per pupil will have the same tax rate. Every basic district with more than $33,000 in equalized valuations per pupil, and with the same budget, will have a lower tax rate. Thus, the Bateman Act continues to employ a wealth-based formula. It differs from the foundation plan in that Bateman includes a weighting factor and allows relatively poor districts to receive, in addition to minimum support aid, a higher share from the State in proportion to the total expenditures of the district. Under the foundation plan the State participated only to the extent of a given level of expenditures, namely, $425 per pupil (plus $27 for the six largest cities).
The AFDC weighting factor would have an appreciable effect under Bateman fully funded. N.J. Model Cities Report, supra, states (at 19) that the total number of AFDC children in the State increased from 25,000 in 1965 to 72,000 in 1969-70.
The Department of Education reports that the total number of AFDC children in the state is now 198,000. However, receiving increased formula aid or federal aid because of AFDC children should not be viewed as a windfall. It should cost much more to provide an adequate education in districts, such as Jersey City and Camden, where AFDC children between the ages of 5 and 17 are equal in number to roughly 30% to 60% of the total school enrollment. See note 18 above. This increased cost was appreciated by the Bateman Committee. The Bateman Report states
It is now recognized that children from lower socio-economic level homes require more educational attention if they are to progress normally through school. When the additional compensatory education is provided, it results in substantially higher costs. The weighting of the children from the lower income families compensates in part for the larger expenditure necessary to provide them with an adequate educational program so they may overcome their lack of educational background. [At 48; emphasis added.]
There is no refunding under the Bateman Act which would make it easier for a poor district to qualify as a comprehensive district. Many wealthy districts in the state would readily qualify as comprehensive districts under criteria suggested by the Bateman Committee (Bateman Report, at 61-63) or that presently being considered. However, the Bateman Committee recognized that some districts “might not be able to attain a higher classification for rеasons beyond their control.” Bateman Report, at 41. The Bateman Committee proposed that the Commissioner should
B. THE EDUCATION CLAUSE
The Legislature shall provide for the maintenance and support of a thorough and efficient system of free public schools for the instruction of all the children in the State between the ages of five and eighteen years.
This clause was first adopted in 1875 as an amendment to the 1844 Constitution. The history of education in New Jersey tells us that this provision was adopted in order to secure as a constitutional right the results of the first 100-year struggle in New Jersey for free and thorough education for all. See Roscoe L. West, Elementary Education in New Jersey: A History, at 42-45 (D. Van Nostrand Co., Inc., Princeton, 1964); Robert D. Bole, “A History of State School Support in New Jersey,” The Bateman Report, supra, at 11.
In his abbreviated history contained in the Bateman Report, (at 12) Professor Bole says that the 1851 statute, which gave school districts unlimited taxing power, “set in
In 1871 the Legislature enacted the Free School Law, L. 1871, c. 527. By this law tuition fees which had been charged by some “public” schools in the State were abolished. The 1871 law levied a uniform tax on all real property in the State at two mills per dollar valuation ($0.20 per $100). If this money was not enough to maintain free schools in operation for at least nine months each year, then local districts were required to raise the needed sum by a township tax. State school tax monies were distributed among school districts according to the number of pupils in each district. The law further provided that, except for $20 per year, state money paid to each school district must be used solely for teachers’ salaries and fuel (section 10).
In discussing the 1871 law, State Superintendent Apgar said in his Annual Report of 1871 (at 12): “The principal support will come from the State, and if any sum is needed to be voted by the township, it will be small * * *.”
The 1871 School Law raised significantly the proportion of school costs borne by the State. In 1870, for example, township and district school taxes ($1.45 million) and tuition ($72,000) constituted 90% of the total statewide expenditures ($1.66 million) and the state appropriation was only $100,000. N.J. School Report, 1870, at 11. Thereafter, from 1872 through 1880, state funding averaged 75% of all school costs, exclusive of construction and repairs. Local revenues constituted 23% of current expenses and 40% of all expenditures, inclusive of construction and repair of schools. In fact, during these years many townships and districts raised no school taxes at all. In 1872, for example, 188 of 230 townships and 887 of 1378 districts raised no school tax. N.J. School Report, 1872, at 8.
The Education Clause was intended to do what it says, that is, to make it a state legislative obligation to provide a thorough education for all pupils wherever located. Landis v. School District No. 44, Camden County, 57 N.J.L. 509 (Sup. Ct. 1895); Society for Establishing Useful Manufacturers v. Paterson, 89 N.J.L. 208 (E. & A. 1916), rev‘g 88 N.J.L. 123 (Sup. Ct. 1915). This does not preclude local administration and responsibility. Riccio v. Hoboken, 69 N.J.L. 649 (E. & A. 1903), rev‘g 69 N.J.L. 104 (Sup. Ct. 1903), held that school districts may be established for the management and support of schools. See also West Morris Regional Board of Education v. Sills, 58 N.J. 464, 477 (1971). However, the Riccio case held that certain classifications in the School Law of 1902 were unconstitutional because
Although districts can be created and classified for appropriate legislative purposes, it was held in the Society for Useful Manufacturers case, supra, that the state school tax remained a state tax even though assessed and levied locally upon local property, with revenues returned by the State to local districts. The court held that prior to the 1875 amendment public schools were a matter of local rather than state concern, but that the amendment made the support of public schools a state concern. 89 N.J.L., at 211.
In Landis v. School District No. 44, Camden County, supra, the court dealt with the constitutionality of that provision of the State School Law which permits local districts to raise sums in addition to the state levy. The court held that the State Constitution does not require “the same means of instruction for every child in the state.” 57 N.J.L. at 512. The 1875 amendment was said “to impose on the legislature a duty of providing for a thorough and efficient system of free schools, capable of affording to every child such instruction as is necessary to fit it for the ordinary duties of citizenship; and such provision our school laws would make, if properly executed, with the view of securing the common rights of all, before tendering peculiar advantages to any.” The court further held that the Legislature also had power to provide “beyond this constitutional obligation * * * in its discretion, for the further instruction of youth in such branches of learning as, though not essential, are yet conducive to the public service. On this power, I think, rest the laws under which special opportunities for education at public expense are enjoyed.”
The word “thorough” in the Education Clause connotes in common meaning the concept of completeness and attention to detail. It means more than simply adequate or minimal. Not adopted was a lower standard of education which had been proposed:
It is clear from findings made earlier that a “thorough” education is not being afforded to all pupils in New Jersey. However, the Bateman Act would probably afford sufficient financing for a thorough education if that act were fully funded. In an area as difficult and costly as education, the judiciary would not invalidate a statute simply because all the funds necessary to fulfill its objectives were not made available in the first year or two of operation. As the Supreme Court said in the West Morris Regional Board case supra, 58 N.J., at 481, where public monies are involved, “modest objectives must be allowed even though more pervasive ones would be welcome.” A statute may not be invalidated “merely because it would also be reasonable to do more.” This is not to say that a statute will be left intact without a reasonable expectation that the fundamental constitutional demand for a thorough education will be achieved in the near future. A court would consider at least taking such steps as are necessary to allocate available resources in order to more closely approximate the constitutional demand. As a first step, certainly, the provision affording minimum support aid to each district regardless of wealth and the save harmless provision of the Bateman Act should yield to the state constitutional purpose.
The Bateman Committee sought to justify minimum aid on the ground that it would provide even wealthy districts with the incentive to improve educational programs, and to maintain them at high levels. Bateman Report, at 48-49. The justification offered at trial was that the State “should do something for every district.” However, as long as some districts are receiving inadequate education, below that constitutionally required, the reasons offered cannot constitute
I conclude, therefore, that the Bateman Act as presently funded does not meet the state constitutional standard of a thorough education for all. Fully funded, however, with funds to offset inflationary trends, the Bateman Act would probably reach this goal, even in cities with a high AFDC composition. It might also reach the constitutional goal in poorer non-AFDC districts, although they will remain at a disadvantage in competing with wealthy suburbs and AFDC cities in dollars available for good teachers. Accordingly, the Bateman Act will not be invalidated on the ground that at present funding levels it does not provide a thorough education for all. However, the minimum support aid and save harmless provisions cannot be reconciled at this time with the command of the Education Clause.
V. EQUAL PROTECTION OF THE LAWS
* * * all men are created equal * * * — Declaration of Independence. 1776. Each child in the State has the right to an educational program geared to the highest level he is capable of achieving, permitting him to realize his highest potential as a productive member of society.
— The Bateman Report, at 38.
All persons are by nature free and independent, and have certain natural and unalienable rights, among which are those of enjoying and defending life and liberty, of acquiring, possessing, and protecting property, and of pursuing and obtaining safety and happiness.
Our Supreme Court has held that this clause contains an implied guarantee of equality comparable to the Equal Protection
Inequalities and inadequacies exist under our financing system. Inequalities are inherent in a system where the capacity to raise taxes for school purposes differs according to the wealth of districts.
It is argued that the system is justified by the State‘s desire to afford local control over education. To what extent local control is real or mythical has been debated in this case. The Bateman Act provides that the Commissioner “shall review each item of appropriation within the budget” of a district whose local tax requirement is less than state formula aid.
In theory the Bateman Act goes far toward equalizing the revenue-raising power of local districts. Even for those districts with a large number of AFDC children, however, the Bateman Act equalizes only to a given level. Poor, non-AFDC basic districts in rural areas and suburbs will not be raised even to the state average of equalized valuations. One reason for this is that the $30,000 guaranteed valuation level chosen by the Bateman Committee was based upon the 1965-66 per pupil state median valuation, which was then $32,057. Bateman Report, at 50. The Bateman Act was not adopted until 1970. It became effective July 1971. By this time the statewide average equalized valuation was more than $41,000 per pupil. See Appendix A. Table I, above, shows that there are 208 districts in the State with a total enrollment of 620,000 (approximately 40% of total state enrollment) whose valuations are less than $35,000 per pupil. Excluding the AFDC weighting factor, the remaining districts in the State, with an enrollment of 865,000, can raise school funds as basic districts at lower tax rates than the first group, even after the equalization formula is given effect. Although the AFDC factor will tend to assist those districts with high AFDC populations, the added costs in educating pupils of those districts should offset the gain in state aid. Moreover, there is no assurance that local officials, particularly in type I districts, will use the added aid for improved education by increasing budgets appreciably; they may simply use the aid to help keep tax rates down. Camden, for example, receives state aid of $345 per pupil, plus substantial federal aid (note 13, supra), and still has a current expense budget of only $843 per pupil. The Bateman Act itself reduces incentive equalization aid in proportion
The large group of pupils in small, poor districts, in rural areas and elsewhere, with little AFDC population, are likely to derive the least benefit from the Bateman formula, as Table V shows. These “poor” districts with valuations of $30,000 or less per pupil must tax at 3.12% in order to spend $1,200 per pupil as a basic district, under Bateman fully funded. Spending $1,200 per pupil, a basic district with equalized valuation per pupil of $30,000 must raise $936 by local taxes in order to receive $121 in minimum aid (weighted) and $93 in state equalization aid. By comparison, districts with $60,000 in equalized valuations, spending the same amount, have a tax rate of 1.71% and will still receive $121 in minmum support aid.
Even if districts were better equalized by guaranteed valuations, the guarantees do not take into consideration “municipal and county overload.” This was a problem which the Bateman Committee recommended to the Permanent Commission for further study. Bateman Report, at 9. Poor districts have other competing needs for local revenue. The evidence shows that poorer districts spend a smaller proportion of their total revenues for school purposes. The demand for municipal services tends to diminish further the school revenue-raising power of poor districts. Another general disadvantage of poor districts is the fact that property taxes are regressive; they impose burdens in inverse proportion to ability to pay. This is because poor people spend a larger proportion of their income for housing. See N.J. Model Cities Report, at 38-40; Guthrie et al., Schools and Inequality, supra, at 186-188.
This is not to suggest that the same amount of money must be spent on each pupil in the State. The differing needs of pupils would suggest the contrary. In fact, the evidence indicates that pupils of low socio-economic status need compensatory education to offset the natural disadvantages of their environment. This is consistent with some comments
Providing free education for all is a state function. It must be accorded to all on equal terms. Brown v. Board of Education, 347 U.S. 483, 493, 74 S.Ct. 686, 98 L.Ed. 873 (1954). Public education cannot be financed by a method that makes a pupil‘s education depend upon the wealth of his family and neighbors as distinguished from the wealth of all taxpayers of the same class throughout the state. Serrano, Van Dusartz and Rodriguez cases, supra, n. 1.
Arthur Wise, Associate Dean, The Graduate School of Education, University of Chicago, first advanced this thesis in “Is Denial of Equal Educational Opportunity Constitutional?” 13 Administrator‘s Notebook, No. 6 (University of Chicago, Feb. 1965). He elaborated upon it in Rich Schools, Poor Schools (Univ. of Chicago Press Chicago, 1968). It was his contention that the present system of funding education of all states except Hawaii (which is funded entirely out of general state revenues) denies the equal protection of the laws. A similar thesis has been advanced by Coons, Clune and Sugarman, in “Educational Opportunity: A Workable Constitutional Test for State Financial Structures,” 57 Cal. L. Rev. 305 (1969), and in Private Wealth and Public Education (The Belknap Press of Harvard University Press, Cambridge, 1970). It is this thesis that has been adopted by the California Supreme Court in Serrano, supra, and by the federal courts in Van Dusartz and Rodriguez, supra.
No compelling state interest justifies New Jersey‘s present financing system. It is doubtful that this system even meets the less stringent “rational basis” test normally applied to the regulation of state fiscal or economic matters. See McGowan v. Maryland, 366 U.S. 420, 81 S.Ct. 1101, 6 L.Ed.2d 393 (1961); Williamson v. Lee Optical of Oklahoma, 348 U.S. 483, 75 S.Ct. 461, 99 L.Ed. 563 (1955). While local control is desirable, discriminations should not be tolerated if they are not necessary for achieving the stated purpose.
The Attorney General contends that two earlier federal cases foreclose consideration of the Fourteenth Amendment equal protection claim: McInnis v. Shapiro, 293 F. Supp. 327 (N.D. Ill. 1968), aff‘d mem. sub nom. McInnis v. Oglivie, 394 U.S. 322, 89 S.Ct. 1197, 22 L.Ed.2d 308 (1969); Burruss v. Wilkerson, 310 F. Supp. 572 (W.D. Va. 1969), aff‘d mem. 397 U.S. 44, 90 S.Ct. 812, 25 L.Ed.2d 37 (1970). This contention was rejected by the courts in Serrano, Van Dusartz and Rodriguez, supra, on the grounds that McInnis and Burruss were limited to the assertion of a “needs” test for the distribution of school funds. (The “needs” test was rejected by our own Supreme Court in relation to the distribution of AFDC funds. Bailey v. Engelman, supra, n. 5.) The complaints in McInnis (see Coons et al., Private Wealth and Public Education, supra, at 306) and in Burruss appear broad enough to include the claims made here and in Serrano. Nevertheless, the conclusion that the issue is still open despite the summary affirmances in McInnis and Burruss is confirmed by the more recent action of the United States Supreme Court in Askew v. Hargrave, 401 U.S. 476, 91 S.Ct. 856, 28 L.Ed.2d 196 (1971).
The equal protection concepts applied here derive from cases that seem to lend themselves more readily to judicial control. See Reynolds v. Sims, supra, asserting the standard of one-man, one-vote; Griffin v. Illinois, supra, holding that an indigent defendant is entitled to a free transcript on appeal; the Harper case, supra, holding that a $1.50 poll tax is an unconstitutional restraint on the right to vote. But one facet of the case at hand does invite a simple standard. Since the State Constitution requires the
Uniformity in taxation is required by
Property shall be assessed for taxation under general laws and by uniform rules. All real property assessed and taxed locally or by the State for allotment and payment to taxing districts shall be assessed according to the same standard of value, except as otherwise permitted herein, and such real property shall be taxed at the general tax rate of the taxing district in which the property is situated, for the use of such taxing district.
No opinion is expressed here on the relationship of the second sentence of paragraph (a), above, to a statewide tax on real property at a uniform rate for distribution to school districts. This was not an issue in the case. It is clear that some kind of uniform, statewide tax can be adopted by the State to finance “thorough” education without relying on a real property tax. In 1935 the Legislature adopted a sales tax to support school finance reform, but it was repealed within four months. See Bateman Report at 18.
There is no compelling justification for making a taxpayer in one district pay a tax at a higher rate than a taxpayer in another district, so long as the revenue serves the commоn state educational purpose.21 Moreover, education is
What is important to note is that the objection to classification by wealth is in this case aggravated by the fact that the variations in wealth are State created. This is not the simple instance in which a poor man is injured by his lack of funds. Here the poverty is that of a governmental unit that the State itself has defined and commissioned.
Education serves too important a function to leave it also to the mood — in some cases the low aspirations — of the taxpayers of a given district, even those whose children attend schools in the district. The uncertainty of raising sufficient local funds for school purposes is the very hazard that the uniform state tax was designed to meet under the Free School Law of 1871. As State Superintendent Apgar stated then, “By this change our school system is, for the first time in its history, placed upon a sure and substantial basis. Our schools will no longer depend for their support upon a fund which a mere majority at a town meeting may any year withhold.” The Education Clause and the equality provisions of the New Jersey Constitution require a more certain and uniform basis than our statutory scheme now provides for the thorough education of each child.
For the foregoing reasons I hold that the statutes of New Jersey do not provide the equality of educationаl opportunity
VI. CONCLUSION
The present system of financing public elementary and secondary schools in New Jersey violates the requirements for equality contained in the State and Federal Constitutions. The system discriminates against pupils in districts with low real property wealth, and it discriminates against taxpayers by imposing unequal burdens for a common state purpose. The State must finance a “thorough and efficient” system of education out of state revenues raised by levies imposed uniformly on taxpayers of the same class. The present equalizing factors in the law are not sufficient to overcome inequities in the distribution of school funds and tax burdens.
The present financing system is declared unconstitutional; but this declaration shall operate prospectively only and shall not prevent the continued operation of the school system and existing tax laws and all actions taken thereunder. This declaration shall not invalidate past or future obligations (such as school bonds, anticipation notes, etc.) incurred under the provisions of existing school laws and tax laws. Said laws shall continue in effect unless and until specific operations under them are enjoined by the court. See Switz v. Middletown Tp., supra, 23 N.J. at 598-599; Ridgefield Park v. Bergen County Board of Taxation, 33 N.J. 262, 266 (1960). To allow time for legislative action, such operations shall not be enjoined prior to January 1, 1974, except that if a nondiscriminatory system of taxation is not enacted by January 1, 1973, then from and after that date no state monies shall be distributed to any school districts pursuant to the “minimum support aid” provisions and the save-harmless provisions of the Bateman Act (L.
The court will retain jurisdiction for such modification or further order as may be required. See Switz v. Middletown Tp., supra, 23 N.J. at 598-599, 614.
Nothing herein shall be construed as requiring the Legislature to adopt a specific system of financing or taxation. The Legislature may approach the goal required by the Education Clause by any methods reasonably calculated to accomplish that purpose consistent with the equal protection requirements of law.
While equalizing tax burdens may be readily accomplished by known means, it may be more difficult to assure that additional school funds will actually result in improved education. No purpose would be served by simply bidding up the cost of the same services without the expectation of improvement. Education must be raised to a “thorough” level in all districts where deficiencies exist. The Legislature, the State Board, the Bateman Committee, educators in this State have defined this goal in commendable terms. See Part I, above. The State Board and the Commissioner have ample statutory power to measure progress and to enforce this mandate by rule and regulation. Equalizing the tax burden in support of these purposes is a more certain goal. The New Jersey Constitution demands that both goals be attained.
An appropriate order for judgment shall be submitted. It shall include specific provisions to assure the validity and enforceability of past and future acts and obligations incurred under existing laws as long as they remain operative.