New Jersey's Abbott Districts: Education Finances During the Great Recession

11 Pages Posted: 14 Aug 2013

See all articles by Rajashri Chakrabarti

Rajashri Chakrabarti

Federal Reserve Bank of New York

Sarah Sutherland

Federal Reserve Bank of New York

Multiple version iconThere are 2 versions of this paper

Date Written: June 1, 2013

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.

Keywords: school finance, Abbott districts, Bacon districts

JEL Classification: H40, I21, I28

Suggested Citation

Chakrabarti, Rajashri and Sutherland, Sarah, New Jersey's Abbott Districts: Education Finances During the Great Recession (June 1, 2013). Current Issues in Economics and Finance, Vol. 19, No. 4, 2013. Available at SSRN: https://ssrn.com/abstract=2309603

Rajashri Chakrabarti (Contact Author)

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

HOME PAGE: http://nyfedeconomists.org/chakrabarti

Sarah Sutherland

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

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