Ch. 73, P.L. 2004 (S-1701), “Budget Cap Law

SAMPLE RESOLUTION

WHEREAS, Pursuant to Article 8, Section 4, Paragraph 1 of the New Jersey Constitution, the provision of a thorough and efficient system of education is the responsibility of the state Legislature; and

WHEREAS, School expenditures are primarily driven by state and federal mandates and “fixed costs”; and

WHEREAS, Local property taxes are the major source of revenue for public education in New Jersey; and

WHEREAS, The state has failed to fully fund its school aid statutes for three consecutive years, increasing the burden on local property taxpayers; and

WHEREAS, S-1701 (Ch. 73, P.L. 2004), signed into law on July 1, 2004, alters school district financial practices and, in fact, could result in property tax increases; and

WHEREAS, S-1701 will force local school districts to adopt imprudent practices and will diminish communities' discretion over the financial operations of their schools; and

WHEREAS, S-1701 will force school districts to reduce free balance (surplus) in 2004-05 and 2005-06, resulting in temporary property tax decreases that will not be sustainable and which will result in property tax increases in 2006-07; and

WHEREAS, This reduction of surplus to perilously low levels could force districts to cut education programs and could increase costs by possibly contributing to the lowering of bond ratings; and

WHEREAS, S-1701 will require school districts to decrease their capital reserve accounts, forcing them to defer necessary maintenance and repairs, to cut education programs, or to borrow funds; and

WHEREAS, S-1701 reduces the spending growth limit, or cap, on school district operating budgets, infringing on school districts’ ability in the future to meet the state’s Core Curriculum Content Standards; and

WHEREAS, S-1701 imposes unnecessary administrative spending limits on New Jersey school districts, limiting local discretion over the staffing necessary to meet the state and local education goals and penalizing school districts that may be saving taxpayer money in other areas; and

WHEREAS, S-1701 will require school districts to obtain the Commissioner of Education’s approval before transferring funds between budgetary line items, impeding their ability to make optimal use of funds and moving a simple budgeting decision from the community into state bureaucratic channels; and

WHEREAS, S-1701 reduces the Spending Growth Limitation Adjustment (SGLA) for hazardous busing services, making it increasingly difficult for school districts to provide a service designed to ensure student safety; and

WHEREAS, S-1701 eliminates the SGLA for early childhood program aid and demonstrably effective program aid, further limiting local school boards’ ability to provide necessary education programs and services; and

WHEREAS, S-1701 restricts the submission of second ballot finance questions at the Annual School Election, thereby infringing on a community’s ability to determine educational program expenditures for its children; therefore be it

RESOLVED, That the ____________ Board of Education urges the state Legislature to repeal Ch. 73, P.L. 2004 (S-1701) immediately; and be it further

RESOLVED, That the _____________ Board of Education urges the state Legislature to fully fund the Comprehensive Educational Improvement and Financing Act and related school aid formulas.

RESOLVED, That a copy of this resolution be sent to Senate President Richard Codey, Senator [name of district’s state Senator], Assembly Representatives [name of district’s Assembly Representatives], Commissioner of Education William Librera, ______ County Superintendent {name of county superintendent], the New Jersey School Boards Association, and the ______ County School Boards Association.