Update:

NJSBA APPLAUDS PASSAGE OF SCHOOL CONSTRUCTION BILL 

TRENTON, July 18, 2000—The executive director of the New Jersey School Boards Association today praised Governor Whitman and the Legislature for crafting an “unprecedented and historic measure to help rebuild schools throughout our state.” 

The Educational Facilities Construction and Financing Act, S-200 (Gormley, Lynch, Collins, Malone), was signed into law by the governor today in front of Cranford High School, Union County.  It will put $8.6 billion in state funds toward school repairs, additions, and new facilities. 

“The average school in New Jersey was built in 1952.  That’s nearly a half century ago,” said Edwina M. Lee, NJSBA executive director.  “Since that time, the needs of students have changed with a greater emphasis in areas such as technology and special education.  Additionally, enrollments have been steadily increasing. 

“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 continued. 

The bill provides state borrowing of $6 billion for projects in the 30 special needs, or “Abbott” districts, $2.5 billion for non-Abbott projects, and $100 million for county vocational schools. 

The legislation contains key elements supported by NJSBA, including a minimum of 40 percent state funding for eligible costs in non-Abbott districts. (By court order, the state must pay 100% of the facility costs in the Abbott districts.)   Additionally, the state aid will be retroactive for construction projects that have received approval 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 for acting responsibly.” 

Other provisions of the bill include:

·         The cost allowance for new construction was increased from $131 in earlier versions of the bill to $138 per square foot.  The new figure now 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 bill encourages demonstration projects to link new construction with community development, a component strongly supported by NJSBA.

·         Early childhood education facilities projects 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 55 percent or more state aid. 

NJSBA’s annual surveys of school construction referenda show that school boards have sometimes struggled to garner voter approval—even in strong economic times.  In 1997, about half of school bond referenda  were rejected; in 1998, four out of 10 did not gain voter approval; and last year, approximately three out of every 10 proposals failed. 

The bill approved by the Legislature contained amendments that Governor Whitman recommended when she “conditionally vetoed” an earlier version.  The Senate concurred with the governor’s recommendations in late June, and the Assembly concurred on July 13th.    NJSBA will monitor the program as it is implemented to gauge its impact on school districts.