Why did New Jersey need a new funding formula?
There are several reasons. First, the New Jersey Supreme Court determined in its 1997 Abbott v. Burke decision (“Abbott IV”) that the previous funding formula, known as the “Comprehensive Education Improvement and Financing Act” (CEIFA), was unconstitutional for children in 31 of the state’s poorest urban communities. CEIFA was later determined to be unconstitutional for children in several poor rural communities as well. When lawmakers stopped funding the formula in 2002, the law became obsolete.