STATE AID ELIGIBILITY

The Educational Facilities Construction and Financing Act, signed into law in July 2000, will provide increased state support for school construction for all New Jersey communities. In non-Abbott districts, eligible construction expenses will be funded by the higher of (1) state aid that is 15% above the district’s previous aid level, or (2) state grants or aid equivalent to 40% of costs—whichever is higher.

The chart below breaks down bond election results before and after the July 2000 enactment of the Act. It further breaks down results to reflect the following factors:

· For the first time, “no-aid” school districts—those not previously eligible for any state support for facilities (debt service aid)—will receive state funding equal to 40% of eligible costs.

· By setting a 40% funding minimum, the Act also promises to benefit low- and moderate-aid districts—those with state aid eligibility below 40%.

· It will also guarantee a 15% increase in state support for districts with previous state aid eligibility above 40%.

Previous State Aid Eligibility (2000-01)	Before July 18	After July 18	All Referenda
	% PASS (# Pass)	% PASS (# Pass)	% PASS (# Pass)
No Aid	66.7% (10 of 15)	71.4% (20 of 28)	69.8% (30 of 43)
.01%–39.99%	63.6% (7 of 11)	92.2% (15.66* of 17)	81% (22.66* of 28)
40% or more	88.9% (8 of 9)	88.9% (8 of 9)	88.9% (16 of 18)
TOTAL	71.4% (25 of 35)	80.9% (43.66* of 54)	77.2% (68.66* of 89)

* Fractions indicate split results in districts where referenda included more than one question.