DFGs were first developed by the New Jersey Department of Education in 1975 for the purpose of comparing student performance on statewide assessments across demographically similar school districts.
The classification system provides a useful tool for examining student achievement and comparing similarly situated school districts in other analyses.
The DFGs do not have a primary or significant influence in the school funding formula beyond the legal requirements associated with parity aid provided to the Abbott districts.
In updating the DFGs using the data from the 2000 Census, efforts were made to improve the methodology while preserving the underlying meaning of the DFG classification system.
From lowest socioeconomic status to highest, the categories are A, B, CD, DE, FG, GH, I and J.