Updated 3/3/00

TRENTON, February 23, 2000—The majority of the $1.199 billion in proposed school construction spending placed on the ballot during 1999 called for additions, renovations and repairs, rather than new school buildings, the New Jersey School Boards Association reported today.

The Association’s third annual survey of school construction elections in New Jersey reveals that, in 1999, voters approved more than $779.8 million of the $1.199 billion proposed for facilities. The results reflect a higher approval rate in 1999, 71.3%, than in the previous year when voters approved 60% of construction referenda.

In all, 89 school construction proposals appeared on the ballot in New Jersey communities from January through December of 1999. That total is 14 more than in 1998.

Repairs, Additions. "What tells the largest story is the type of proposals that local school boards placed on the ballot," explained Charles V. Reilly, NJSBA president. "Construction ballot questions usually consist of several components, so that a single proposal can call for new construction, renovation of an existing facility and repairs. Almost 70% of the proposals in 1999 sought renovation or repair, such as roof replacement, and heating, plumbing and electrical repairs. Renovations are more expensive on a square-foot basis than new construction because of the type of architectural work involved."

Only 19% of the proposals called for construction of totally new school buildings. However, more than three-quarters of the proposals called for additions to existing structures.

"This is important information for Governor Whitman and the Legislature to consider," said Reilly, pointing out that state leaders are preparing a multi-billion-dollar program to provide loans and financing for school construction. "To be effective, that plan has to make allowances for the higher cost per square foot of renovations and repairs," he noted.

Pent-Up Demand. The larger number of school construction proposals in 1999 illustrates the increasing need for upgraded facilities statewide, according to the NJSBA president. "Current demand is pent up as school boards wait for the state’s program to go into effect," he said. "However, many school districts have not been able to wait for the state program, especially when their construction plans involve health and safety. That’s why making the school construction program retroactive is vitally important."

Reilly noted that the current Senate and Assembly versions of the state construction legislation would apply state aid retroactively to school construction plans approved since September 1998.

Regional Differences. On a regional basis, construction proposals fared best in the state’s seven southern-most counties where voters approved 25 out of 28 referenda (89.3%). In northern New Jersey, voters passed 59.5% of the 37 questions on the ballot. Voters in central New Jersey school districts approved 68.8% of the 24 referenda.

According to Reilly, one factor in the disparate results may be higher construction costs in the northern New Jersey-New York metropolitan area.

Gaining Approval Difficult. "The increasing percentage of the referenda approved shows that citizens clearly recognize the need for school facility improvement," said Reilly, noting that Governor Whitman has placed the cost for needed school facilities in New Jersey at $10 billion.

"However, it is still not easy for school districts to gain voter approval. For example, although more than 70% of all construction plans were approved, only 56.3% of those calling for new school buildings—as opposed to additions or renovation—gained voter support."

In addition, nearly one-third of the referenda on the ballot in 1999 represented the second, third or fourth attempt of a school district to gain voter approval of a facility proposal, Reilly pointed out. "Many of these school boards found it necessary to reduce their plans or change them in some other way. But even with those changes, nearly 30% of the proposals were rejected by voters on the second, third or fourth try."

Residential Development. Proposals for new schools and additions often result from increased enrollment, particularly in developing communities, Reilly noted.

"These communities often find it difficult to pay for necessary school facilities," he said. "The situation underscores the need to give municipalities the authority to assess educational impact fees against builders to help pay for new facilities required by the increased enrollment brought on by residential development."

Other results from the New Jersey School Boards Association’s third annual survey of construction referenda included the following:

• December was the most popular month for construction proposals with 23 on the ballot statewide. October (15), April (13), February (11), and September (9) followed December. During the five most popular months, referenda fared best in April (86.4% approved), followed by September (83.3% approved), February (72.2% approved), October (66.7% approved) and December (56.5% approved).

• Proposals of $5 million or less fared best with voters, with 21 out of 24 plans in that price range gaining approval. (Lower-cost proposals tend to focus on repairs and facility upgrading, rather than additions or new construction.) Just over half of the 21 referenda in the $15 million to $30 million range received voter approval. However, five out of the six referenda that totaled more than $30 million passed.

The 1999 survey of school construction referenda represents the third such effort by the New Jersey School Boards Association. NJSBA collected information for its report primarily through a survey of business administrators in school districts identified by county boards of election or county clerks as having conducted construction referenda in 1999. The project represents the only compilation of statewide school construction election results.

Click here to see results from the previous year's survey.