School Finance in New Jersey Essay Example | Topics and Well Written Essays - 750 words

School Finance in New Jersey - Essay Example Free education for students who come from poor neighborhoods set a leveled ground for employment and competition in a knowledge-driven market. Other private universities and schools receive income from; school fees, selling and leasing commodities, real estate business, foreign corporate equities, debt securities, treasury securities, corporate bonds, common stock and mortgage-backed securities1. In New Jersey, tax levied on the property is $1 for every $100 of assessed taxable value. The tax bill paid by schools in the district is calculated using a general tax rate of 0.03758 (New Jersey State, 2012). A property that has an assessed value of $200,000 pays a tax bill of $7,516. This is the total amount of $1 for every $100 in the value of the property2. The greatest financial challenge facing the school district in New Jersey is the freezing of financial aid that assists the public schools. The state froze this aid under the federal and state mandate. Due to this freezing legislatio n, the level of student enrollment and costs of learning and property are on the increase. Also, it has led to a loss of about $846 million that was allocated for school finance New Jersey state (New Jersey School Board Association, 2010). Other financial challenges include schools that are waiting for the funding of construction of educational facilities. This delays educational development in the school district. New Jersey experiences shortage of education, technology, world languages, Math, preschool and science teachers. New Jersey state legislation has focused on increasing the property tax to cater for free education, but the 2008 financial crisis cast a dark shade on the growth of free education system in the district because the government and federal funding was cut due to the crisis, and a slow but developing economy. Roles of Principals in Budget Development School principals are the leaders in New Jersey school system. They not only communicate with teachers and student s, but also plan for school facilities, educational trips and advanced learning system. The principals record the number of certified teachers in their schools and the amount of salaries and other benefits they are paid. Salaries and benefits for assisting, substitute and relief teachers are also recorded and included in the budget. The principal records the number of classroom and cafeteria supplies as well as the materials needed. New Jersey State gives principals $2,000 as budget guidance for supplies and materials (New Jersey Department of Education, 2006). Technology costs are included in the budget for improvement of computer usage in classrooms. Principals budget for new classrooms that require furniture, computers and academic supplies among others. The total amount of funds for start-up classrooms in New Jersey is $14,450.3 Field trips are organized by teachers, but the principal takes the initiative to issue funds and budget for them in advance. Management salaries and ben efits are also calculated and recorded in the budget. The Self-Sufficiency School Principals Principals in New Jersey State are given the freedom and respect to manage their own budget system in accordance with state legislation. It is extremely essential for principals to manage their own budgets because different public and private schools have their own unique setting in terms of educational constructions, equipment and