P'burg schools get a win in funding war

The New Jersey Supreme Court is requiring a hearing to establish evidence on which state aid system best benefits the state's poorest districts, including Phillipsburg.

Gov. Jon S. Corzine's request for the dismissal of the long-running Abbott v. Burke litigation was rejected Tuesday by the court, which instead opted for a different approach.

It has called for a series of hearings at which Corzine can try to prove that his formula for distributing $7.8 billion in school aid eliminates the need for special help for the so-called "Abbott" communities.

In March, the state said its new school-aid formula ensures adequate funding for children in every community and asked for the suit's dismissal. However, under the new formula, Phillipsburg found itself so far in the red that administrators had to lay off dozens of employees to balance its budget.

Richard Shapiro, an attorney representing 13 of the Abbott districts, including Phillipsburg, called Tuesday's court decision a tentative victory, allowing for more discussion on the legitimacy of Corzine's formula.

"In the long run, this gives the districts the opportunity for an evidentiary hearing about why the new formula is unconstitutional," Shapiro said.

The New Jersey Department of Education declined to comment on the court's decision due to the pending litigation.

During the hearings, Abbott districts will be given the chance to share any of the formula's adverse effects on their district, he explained.

Phillipsburg Superintendent Mark B. Miller said district officials have been following the hearings closely. The district is prepared to describe in court the effects of spending cuts, he said.

Abbott districts received a small increase in state funding following the passage of Corzine's formula in January and, as a result, Phillipsburg wrestled with a $10 million budget shortfall.

In an effort to balance the budget, the district let go of 64 employees and restructured administrative positions.

Miller said despite not being around for the May cuts, he has seen the consequences of an understaffed district.

"Let's put it this way: We are surviving with those cuts," Miller said.

Faculty negotiations, expected to begin within months, will likely be affected by the court's decision in the wake of the hearings, Miller said. Phillipsburg and other districts, he suspects, will have to "tighten the belt" in order to endure slim state funding.

Shapiro said the money responsible for the construction of the district's $174 million new high school is unaffected by the ruling, because the funds are part of the state Schools Development Authority.

The Associated Press contributed to this report.