TRENTON, May 17, 2001—The state’s Educational Construction and Financing Act encouraged more school districts—especially those not previously eligible for facility funding—to seek voter approval of construction plans, the New Jersey School Boards Association found in its fourth annual survey of school bond election results.

"When the Legislature approved the school facilities act, it recognized the need for school construction and renovation in all types of school districts," said Edwina M. Lee, NJSBA executive director. "Our survey indicates that the program is having an impact."

Signed into law in July 2000, the facilities act will provide $8.6 billion in state grants and aid to local school districts. NJSBA’s survey indicates that the legislation had a strong impact on school district willingness to place construction proposals before voters and the willingness of voters to approve those plans.

After enactment of the bill, 54 construction proposals appeared on the ballot statewide, compared to 35 in the first six months of 2000. Voter approval rates also increased, with 80.9% of the proposals on the ballot after July gaining approval. In comparison, voters accepted 71.4% of the proposals on the ballot during the first half of the year. In addition, the dollar amount of construction approved by voters nearly doubled—to $684.11 million—in the six months following the enactment of the bill.

The state funding has come at a critical time, according to NJSBA.

"Growing enrollment due to residential development, the baby boom echo, and immigration has fueled a need for school space in New Jersey," said Lee. "The state’s curriculum standards also have an impact on school facility needs, especially in areas such as science laboratories and technology."

Impact of Facilities Act. The act will enable "no-aid" districts—those not previously eligible for any state support for facilities—to receive state funding equal to 40% of eligible costs. By setting a 40% funding minimum, the legislation also benefits low- and moderate-aid districts—those with state aid eligibility below 40%, according to NJSBA.

In no-aid districts, the number of bond proposals jumped from 15 to 28 (or 86.7%) in the second half of the year. Voters in the no-aid districts approved 71.4% of the bond issues presented in second half of the year, a moderate increase over the 66.7% approval rate during the first half of 2000.

"School officials have to recognize that, even with the infusion of state funds, voters are still concerned about the impact of any spending plan on the local property tax rate," said NJSBA Executive Director Lee.

The largest increase in approvals took place in the low- and moderate-aid districts where voters approved 92.2% of the referenda during the second half of the year, compared to 63.6% in the first six months of 2000.

Most of the funds from the facilities act will go to the state’s 30 poorest districts, where the New Jersey Supreme Court ordered the state to fund new school construction. Approximately $2.6 billion will go to other school districts. Before any financial assistance flows, however, school districts have to develop long-range facility plans for state approval. And, in the vast majority of school districts, voter approval of the construction project is also required.

Increase in Approvals. Eighty-nine referenda took place in 2000, the same number as in 1999. Voters approved 77.2% of the construction questions in 2000, up from 71.3% in 1999. The 2000 results reflect voter authorization of $1.043 billion in school construction spending.

Construction Purpose. The majority of construction referenda on the ballot in 2000 (79.8%) had components calling for renovation and repairs. Nearly two-thirds also had components calling for additions or expansion of existing buildings, rather than totally new buildings. Just over 20% of the proposals called for construction of new buildings.

Voters approved more than 80% of the proposals calling for additions and/or renovations, but only 65% of those calling for new schools.

Other finding from NJSBA’s annual survey included the following:

Average voter turnout in local bond elections during 2000 was 24.09%, markedly higher than voter participation in the April 2000 school budget elections (12.5%).

Twenty-three of the 89 construction questions on the ballot represented school districts’ second, third, fourth and, in one case, fifth attempt to gain approval. Sixteen of these 23 referenda passed—ten of them after their costs were reduced from previous proposals.

90% of the proposals in South Jersey (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester and Salem counties) gained voter approval—compared to 77.2% in central New Jersey and 67.1% in the state’s eight northern counties.

A record number of construction proposals (35) appeared on the ballot in December 2000. Voters approved 77.6% of the December referenda. However, higher approval rates were seen in February, April, May, September and October.

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