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

NJSBA Testimony Questions Impact of Accountability Regulations

EAST BRUNSWICK, June 18, 2009 — Provisions of the state’s Accountability Regulations, intended to promote public school efficiency, are creating additional administrative burdens and cost in local school districts, an official of the New Jersey School Boards Association told state education department officials today.

During one of several public hearings on the regulations, Eva M. Nagy, NJSBA vice president for legislation/resolutions, presented results from a survey of the state’s school districts, as well as the association’s analysis of proposed revisions developed by the Department of Education.

“Accountability, fiscal responsibility, and focusing resources on instruction represent the core mission of local school districts,” she testified. “But there is a critical difference between the principles behind these goals, and the procedures set up to reach them. There is also an important distinction that must be made between regulations that advance goals and those that result in micromanagement and, consequently, create an obstacle to progress.

“Unfortunately, those obstacles result from many of the provisions of the Accountability Regulations.”

The Accountability Regulations affect school district business operations and personnel policies. They also establish a structure for the state’s 21 executive county superintendents to develop proposals to regionalize school districts within their jurisdictions. The rules were finalized in December 2008, but must undergo review prior to their re-adoption July 1.

Approximately 37 percent of the state’s school districts participated in NJSBA’s survey, which was supported by the New Jersey Association of School Business Officials. The survey focused on the financial, staffing and administrative impact of several areas of the regulations, including conditions for receipt of state aid; efficiency standards used by the state’s executive county superintendents in reviewing proposed school budgets; a legal services record-keeping requirement; travel regulations; and a requirement for a second audit in some school districts.

• “A majority of school officials fear that some of the ‘efficiency standards’ may be leading to diminished quality of services,” said Nagy, who serves on the Franklin Township Board of Education in Somerset County. “Additionally, many of the standards set benchmarks at statewide medians, guaranteeing that half of the state’s districts will not meet them and resulting in a downward push in staffing and expenditures that could affect school quality.” The efficiency standards address use of teacher aides, level of support services, maintenance, administrative staffing, and food service operations.



• Regulations addressing travel for business and training and for expenditures related to professional development are imposing administrative burdens in the vast majority of school districts, according to Nagy. In addition, some school officials expressed concern that the “travel regulations” may discourage professional development among teaching staff. “Many believe that the additional administrative burden and future costs of compliance will outweigh savings,” she testified.



• Requirements for the extensive tracking and recordkeeping of legal service are producing unnecessary and duplicative paperwork that will not result in cost-savings, according to the NJSBA survey. “Many respondents said their districts already had adequate controls in place,” Nagy explained. “Some commented that an additional administrative burden was being placed on them due to infractions by a relative few.”



• Responding school districts cited over $4.6 million in staffing and non-staff costs that resulted from implementing five of the conditions for receipt of state aid. The largest share of the costs came in two areas: internal financial controls and enterprise resource planning. That total does not include the cost of a second audit, which the regulations would require periodically in districts that receive more than half of their revenue from the state. Districts subject to this requirement estimate that it would cost more than $43,500 each to comply.

Nagy also referenced NJSBA’s analysis of the Department of Education’s proposed revisions to the regulations. She noted the absence of consistent definitions of “immediate family member” and “relative” in sections dealing with anti-nepotism policies; potential costs to school districts when participating in regionalization development studies, and the need for such studies to consider all labor relations implications.

“The regulations specify factors that the Executive County Superintendent would consider in developing regionalization plans. A critical element is missing, however,” she warned. “That is, financial review of the implications of consolidating staffing and collective bargaining agreements, including length of workday and work year provisions.

“The impact of such factors must be considered due to current laws that prevent reduction in compensation, require that the ‘largest district agreement prevails’ after regionalization, and produce other labor relations considerations.”

As provided under the re-adoption process, NJSBA will provide the Department of Education with detailed written commentary on 51 parts of the regulations at a later date. A complete report on results of the NJSBA survey will be available shortly.