SCHOOLS GEAR UP FOR MASSIVE CONSTRUCTION EFFORT           

“As the $8.6 billion program gets underway, the focus will be on accountability, need and educational validity,” explained Edwina M. Lee, executive director of the New Jersey School Boards Association.  “Before any financial assistance begins flowing from the state, school districts must complete long-range facility plans, have them approved by the state and, in many communities, obtain voter approval of the construction project.” 

The school construction act, S-200 (Gormley, Lynch, Collins, Malone), allows the state to borrow $8.6 billion for school repairs, additions, and new facilities.  Of that amount, $6 billion will go toward projects in the 30 special needs, or “Abbott” districts; $2.5 billion for non-Abbott projects; and $100 million for county vocational schools.  The bill will provide state funding—in the form of cash grants or annual state aid—to cover a minimum of 40% of eligible construction costs in non-Abbott districts.  By court order, the state will fully fund all eligible construction costs in the 30 Abbott districts.

Stresses Planning  The law also stresses planning, accountability and educational adequacy, according to NJSBA.  It requires any school district applying for state construction funding to submit a five-year plan to the state Department of Education by December 15.  The plan must describe how the district will address its facilities needs, its projected growth in enrollment, and the issues of health, safety and educational requirements.  (The law, however, does permit the commissioner to approve aid for construction projects that are urgently needed for reasons of health and safety and overcrowding.) 

At present, the state Department of Education is in the process of developing “facilities efficiency standards” that will define the instructional and administrative spaces a district needs to achieve the state’s educational standards. 

Not all project costs would qualify for state funding.  The law will provide state funding for—

• Renovation necessary for compliance with construction code, for health and safety reasons, and/or to achieve state educational standards.

• New construction to accommodate increased enrollment.

• Space needed to comply with state or federal law concerning students with disabilities.

• Additional space that the commissioner determines is necessary to meet the district’s educational needs. 

After they complete their long-range plans and apply for state funding, many school districts must get voter (or board of school estimate) approval for the local share of the cost of the construction project.  The 30 Abbott districts and any other district that might be eligible for full state funding would not need to obtain voter (or board of school estimate) approval. 

State officials have said it may be several months before the application and approval process is entirely operational. 

Meets Critical Need   “The need for this legislation has been clear for more than a decade,” said NJSBA’s Lee.  “The average school in New Jersey was built in 1952.  That’s nearly half a century ago—before educators placed such a great emphasis on areas such as technology, special education and smaller class size.  Since that time, enrollments have increased, while many school districts struggled to gain voter approval for expansions and repairs.”

NJSBA Pushed for Key Elements  The legislation contains key elements supported by NJSBA, including a minimum of 40% state funding for eligible costs in non-Abbott districts.  Additionally, state funding will be applied retroactively to construction projects that were approved by the state Department of Education or by a local construction code official since September 1, 1998.  

“The retroactivity provision was a major NJSBA goal,” said Lee.  “Many school districts could not delay their facilities projects, and lawmakers agreed that those districts should not be penalized.” 

 Other provisions of the bill include the following:

• The cost allowance upon which the state will base funding for new construction was increased to $138 per square foot from $131 per square foot.  The new allowance covers construction as well as “soft costs” for land acquisition and professional fees for architects and attorneys.

• Districts can file appeals for additional state funds if their eligible costs exceed the state cost allowance.  This provision would benefit districts in the higher-cost areas of the state, according to NJSBA, which sought the amendment.

• The state treasurer will designate facility construction programs that will serve as demonstration projects linking new construction with community development, a component strongly supported by NJSBA.

• Facilities for early childhood education will qualify for funding.

• The New Jersey Economic Development Authority will be responsible for construction and financing in the Abbott districts as well as in non-Abbott districts eligible for state funding of 55% or more of project costs.  Districts eligible for state funding of less than 55% may implement the construction project on their own, or use the authority’s services. 

Can Help All Communities   “This legislation can benefit all communities—from the inner-cities where the courts have ordered the state to upgrade facilities, to suburban and developing communities with high property taxes and burgeoning enrollments,” Lee said.  “The strong focus on long-range planning, need and accountability should assure taxpayers that this massive undertaking is sound public financial policy.”