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School Finance Reform's Impact on New Jersey's State Spending Priorities
Author(s) -
Peters Robert A.
Publication year - 1996
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/1540-5850.01078
Subject(s) - governor , opposition (politics) , state (computer science) , public finance , economics , payment , finance , business , public administration , economic policy , public economics , political science , macroeconomics , law , physics , algorithm , politics , computer science , thermodynamics
The combination of school finance reform, voter opposition to higher taxes, and rising costs forced the state of New Jersey to reorient its spending priorities. This article presents an analysis of budgetary data for the period FY 1990 to FY 1996, which clearly indicates that: 1) state resources were shifted from direct state services to state aid; 2) even though the 1991 sales and income tax hikes were revoked, the state's tax structure was more progressive in 1996 than in 1990; 3) Governor Florio's attempts to level down per pupil expenditures by reducing payments to wealthy school districts were largely stymied; 4) the proportion of state resources allocated to public education was lower in FY 1996 than the year preceding school finance reform; 5) because of education's reduced budget share, efforts to level up per pupil expenditures were severely circumscribed; and 6) state aid was diverted from homestead rebates to municipal aid.