P.O. Box 909 ● Trenton, NJ 08605-0909 ● Phone: 609.695.7600 ● Fax: 609.695.0413 ● Web: www.njsba.org/PI

Treasurer: Cuts Needed in 2009-2010 School Aid

TRENTON, May 20, 2009 — In testimony before the Assembly Budget Committee on Tuesday, state Treasurer David Rousseau told lawmakers that the Corzine administration is amending its recommended 2009-2010 budget to reduce several expenditures, including $65 million in aid for certain school programs.

Both Rousseau and David Rosen, budget and finance officer for the non-partisan Office of Legislative Services, painted a dire picture of state revenue, which is billions of dollars below previous forecasts.

The treasurer said that, even with the cuts, direct state aid for 2009-2010 will still reflect a $271 million statewide increase. On the chopping block were the following allocations:

• Debt service aid—a $35 million reduction from the earlier recommendation of $99.2 million. Debt service aid helps districts pay off construction bonds.
• Pre-school matching funds—elimination of $25 million for school districts that use federal Title I stimulus monies initiate or expand full-day academic preschool.
• Magnet special education programs—elimination of a new $5 million fund for local district-based magnet programs for severely disabled students.

Further updates will be posted on NJSBA’s Web site and in the electronic version of School Board Notes.