Christie's school-aid freeze was legal, court says
TRENTON - Gov. Christie acted within his authority when he froze $475 million in state aid to schools to close a $2.2 billion budget deficit, a state appellate court ruled Monday.
The Perth Amboy Board of Education lost more than $15 million as a result of Christie's order to withhold state funding for the remainder of the current fiscal year, which ends June 30. Christie directed the state to withhold an amount equal to the "excess surplus" for each school district.
Excess surplus is defined as surplus exceeding 2 percent of a district's operating budget; by law, districts are supposed to use their excess surplus to provide tax relief.
Christie said that because he cut aid the way he did, no programs would have to be cut in the current fiscal year.
Perth Amboy officials argued that Christie violated the constitutional principle of separation of powers because under the state statutes, excess surplus is to be appropriated to the school district's subsequent fiscal year's budget.
The three-judge panel ruled that under state law, the state education commissioner "is granted broad powers to direct expenditures to meet [thorough and efficient] requirements as well as to address emergency circumstances."
"The Legislature clearly contemplated that situations may arise whereby a district will need to use its excess surplus for matters other than the next year's operating budget," the opinion continues. "In such cases . . . the commissioner has the power to approve the transfer of those funds to operating costs for the current school year to ensure that a school district provides a [thorough and efficient] education."
The Perth Amboy Board of Education lost more than $15 million as a result of Christie's order to withhold state funding for the remainder of the current fiscal year, which ends June 30. Christie directed the state to withhold an amount equal to the "excess surplus" for each school district.
Excess surplus is defined as surplus exceeding 2 percent of a district's operating budget; by law, districts are supposed to use their excess surplus to provide tax relief.
Christie said that because he cut aid the way he did, no programs would have to be cut in the current fiscal year.
Perth Amboy officials argued that Christie violated the constitutional principle of separation of powers because under the state statutes, excess surplus is to be appropriated to the school district's subsequent fiscal year's budget.
The three-judge panel ruled that under state law, the state education commissioner "is granted broad powers to direct expenditures to meet [thorough and efficient] requirements as well as to address emergency circumstances."
"The Legislature clearly contemplated that situations may arise whereby a district will need to use its excess surplus for matters other than the next year's operating budget," the opinion continues. "In such cases . . . the commissioner has the power to approve the transfer of those funds to operating costs for the current school year to ensure that a school district provides a [thorough and efficient] education."
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