Rx Needed for High Energy Costs 

The news media might be playing the gas story to the max. But, in fact, spiraling motor fuel costs can have a direct effect on all areas of the economy. For public school district budgets, the impact could be severe. School boards are already dealing with a litany of revenue problems, as well as with the budgetary restrictions imposed by “S-1701.” Those restrictions limit the flexibility districts need to deal with unanticipated cost increases

Budget Cap Adjustment

Budget Cap Adjustment Two bills pending in the state Legislature would create adjustments to the state-imposed budget cap to help schools contend with increasing energy costs.

• A-1747  (Johnson, Voss, Stanley, Greenstein) would allow budget cap adjustments for energy-price increases over the previous year. Energy costs would include those for natural gas, oil, gasoline and diesel—including fuel used to support the district’s pupil transportation system. A-1747 is in the Assembly Education Committee.
  
  
• S-191 (Doria, Turner) would create a cap adjustment for the cost of utilities, as well as petroleum-based products. In addition to natural gas, heating oil, coal and motor fuels (including fuel used for student transportation), the cap adjustment would address electricity costs and sewer system fees. S-191 is in the Senate Education Committee.

Tax Refunds/State Contract

Tax Refunds/State Contract Three other measures, now in legislative committee, would also help school districts contend with escalating energy costs.

• S-259 (Sarlo) would allow private bus contractors to obtain state motor fuel tax refunds. Under current law, motor fuel purchases by school districts and other governmental entities are already exempt from the tax. However, an estimated 60% of school transportation routes are operated by private bus companies under contract with school districts.
  
  
• A-1328 (Biondi, Malone) would also give school bus contractors the ability to apply for refunds of the motor fuels tax.
  
  
• A-1329 (Biondi, Malone) would permit school boards and private school bus contractors to purchase gasoline or diesel fuel under the state contract. According to its sponsors, the bill would give schools the benefit of the lower price that the state can negotiate due to its large purchases of gasoline and diesel fuel.

The bills are in the education committees of their respective houses.

ACES to the Rescue

The NJSBA-sponsored energy buying cooperative—ACES (The Alliance for Competitive Energy Services)—has established a natural-gas buying program that will provide price stability over the next two years. (See School Board Notes, April 27.) More than 250 school districts have joined the program. In addition, ACES recently negotiated a group-purchase contract for 24 school districts with high-usage electricity accounts.

Corzine Initiative

On April 22, Governor Corzine signed an Executive Order  creating the post of director of energy savings and outlining steps to increase energy efficiency in state government. The director of energy savings will design and implement a program to increase efficiency, reduce usage, and improve the procurement of energy for state facilities. Currently, New Jersey state government spends approximately $128 million on energy costs.