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New Jersey’s Abbott districts: education finances during the Great Recession

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Abstract

Funding for New Jersey?s low-income school districts tumbled in the most recent recession, and the Abbott districts?a group of poor urban districts that for almost two decades received special appropriations from the state?were hit especially hard. A comparison with the state?s other low-income districts reveals that the Abbott districts faced markedly sharper declines in aid, relative to trend. Consequently, while all of the low-income districts responded to the drop in state aid by scaling back spending on support services and utilities, only the Abbott group also made significant cuts in instructional spending. Moreover, the fiscal strains of recession appear to have led to layoffs of untenured teachers in the Abbott districts, but not in the state?s other low-income districts.

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  • Rajashri Chakrabarti & Sarah Sutherland, 2013. "New Jersey’s Abbott districts: education finances during the Great Recession," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 19(Jun).
    • Handle: RePEc:fip:fednci:y:2013:i:jun:n:v.19no.4
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    1. James A. Orr & John Sporn, 2012. "The American Recovery and Reinvestment Act of 2009: a review of stimulus spending in New York and New Jersey," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 18(Sept).
    2. Chakrabarti, Rajashri & Roy, Joydeep, 2015. "Housing markets and residential segregation: Impacts of the Michigan school finance reform on inter- and intra-district sorting," Journal of Public Economics, Elsevier, vol. 122(C), pages 110-132.
    3. Richard Deitz & Andrew F. Haughwout & Charles Steindel, 2010. "The recession's impact on the state budgets of New York and New Jersey," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 16(Jun/Jul).
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    1. Nora Gordon & Sarah Reber, 2020. "Federal Aid to School Districts during the COVID-19 Recession," National Tax Journal, National Tax Association;National Tax Journal, vol. 73(3), pages 781-804, September.
    2. Nora E. Gordon & Sarah J. Reber, 2020. "Federal Aid to School Districts During the COVID-19 Recession," NBER Working Papers 27550, National Bureau of Economic Research, Inc.

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