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NJSBA Releases 1998 School Bond Election Report

RESULTS SHOW NEED FOR CONSTRUCTION INITIATIVE, TAX REFORM

TRENTON, February 17, 1999-New Jersey voters approved 60% of the school bond issues on the ballot in 1998, an increase over the previous year, the New Jersey School Boards Association reported today. Positive voter reaction to a large number of smaller proposals (under $10 million) contributed to the higher passing rate, the Association found. At the same time, high property tax rates continued to hinder approval in some communities.

NJSBA's second annual survey of bond referenda shows that 45 (60%) of the 75 school construction/facility plans on the ballot in 1998 gained voter approval, up from 53.3% in 1997. Among districts with property tax rates at or above the state average, the passing rate was significantly lower than that for the state as a whole.

"Even with the overall increase in bond approvals, it's clear that communities cannot meet our state's multi-billion construction needs on their own," said NJSBA President Charles V. Reilly. "Our kids can't get by in classrooms designed for the 20th or, in some cases, 19th century.

"High property tax rates present a roadblock to voter approval of necessary school facilities," he continued. "When we weighed the bond election results against certain criteria, such as community wealth and socio-economic status, no clear trends emerged. That was not the case when we evaluated the results in terms of property tax rates."

Fewer bond elections (18, compared to 57) took place in districts with average or higher-than-average property tax rates than in communities with below-average tax rates. In the higher-tax communities, voters approved half of the proposals, compared to more than 63% in lower-tax school districts, a difference of 13 percentage points.

The size of the bond issues was also a dominant factor. Forty (53.3%) proposals statewide were priced at less than $10 million. Voters approved 28 (70%) of these plans. In high-tax communities, the proportion of proposals in the "under $10 million" range and the results of those elections were roughly the same as for the state as a whole. This indicates that property tax rates were a factor, independent of the size of the bond proposals, according to Reilly.

In reviewing the 1998 bond election results, NJSBA also made the following observations:

Demographic trends and educational needs will place more pressure on New Jersey to build new schools, Reilly noted.

The U.S. Department of Education projects that New Jersey's public school enrollment will continue to grow through 2006, the NJSBA president pointed out. Moreover, many school districts will need major structural improvements to accommodate the technology needed to meet the state's new curriculum standards. In addition, aging school buildings need replacement or structural repairs.

The New Jersey School Boards Association is advocating several initiatives to enable the state to meet its school facility needs: