In case you missed it, a very important action alert was issued on S1726—a bill that requires local school districts to pay construction contractors within 30 days, regardless of any circumstances and if they need to borrow money to pay. 

If payments are late, school districts would be held liable for the money they owe under contract, with interest at an amount equal to the prime rate, plus 1 percent. 

School districts would have to borrow money to pay their contractors even if state aid has not been received. The state also would not reimburse districts for interest paid.

Unfortunately, both Houses of the New Jersey Legislature approved this bill while the governor and the rest of the state were focused on the upcoming special session on property taxes.

Our only chance now is to convince Gov. Jon S. Corzine against signing the bill into law.  School board members need to provide a strong show of opposition in a short period of time.