New Jersey’s Portion: $1.33 billion
Allocation Method: The U.S. Department of Education (USDOE) distributes the funds to the states based on a formula. New Jersey will distribute the bulk of the funds via the state’s primary school funding formula enacted in the School Funding Reform Act.
New Jersey will receive $1.33 billion from the State Fiscal Stabilization Fund created under the American Recovery and Reinvestment Act (ARRA). Per federal requirements, 81.8% ($1.088 billion) must be used for education purposes, and the remaining 18.2% ($242 million) is to be used other government services, which can include education.
New Jersey is allocating its State Fiscal Stabilization Fund (SFSF) in the following way:
- Approximately $1.057 billion will provided to the State’s school districts to implement the new school funding formula enacted by the School Funding Reform Act of 2008 (SFRA).
- About $70.8 million is allocated to public colleges and universities in New Jersey. These funds are being used to restore cuts for higher education that were included in the proposed budget for FY 2010. These cuts are restored only if certain conditions, including limits on tuition increase, are met. Furthermore, the increase in funding for Tuition Aid Grants (TAG) in the FY 2010 budget is being supported with SFSF dollars.
- The remaining $200 million is being used to offset state salary costs at the Department of Corrections for FY 2009 and FY 2010.
To view New Jersey’s full application to the USDOE for the SFSF please visit the USDOE’s website at: http://www.ed.gov/programs/statestabilization/resources.html