NJSBA Greets Reports with Caution
The four joint committees formed as part of the Legislature’s special session on property tax reform issued 98 recommendations on Nov. 15. They include—

• Conducting school board member elections in November.
  
  
• Eliminating the annual election on the base budget, but requiring ballot questions in the spring for proposed expenditures above the state-imposed budget cap.
  
  
• Creating a “hard” budget cap based on the consumer price index and adjusted for enrollment only.
  
  
• Creating the position of executive county superintendent, which would absorb certain administrative and business functions that now take place at the local school district level.
  
  
• Eliminating send-all (non-operating) school districts.
  
  
• Requiring referenda on consolidating elementary-only and secondary-only school districts into Kindergarten through 12th grade systems.
  
  
• Giving school districts in the State Health Benefits Program the ability to negotiate aspects of coverage with their employees.

Immediately after the release of the special session reports, NJSBA Executive Director Edwina M. Lee offered a mix of caution and enthusiasm about several of the committees’ recommendations.

Benefits reform: “The committee’s recommendations…can have a direct, positive impact on property tax relief,” said Lee. “We strongly support the recommendation to allow school boards in the State Health Benefits Plan to negotiate terms of the benefits. The practice is common in the private sector, and saves money.”

School elections: “We agree with the concept of eliminating elections for school budgets that are under the state-imposed spending cap. But moving school board member elections to November puts those candidates in a partisan environment.”

‘Super’ county superintendents: “Creating ‘super’ county superintendents might cost communities money. By taking over procurement and, perhaps, negotiations, the concept could undermine cost savings that local boards have already achieved,” said Lee. “The special session’s cost-saving objectives could be achieved better through incentives that promote shared services. We are also wary about placing sweeping powers in the hands of a political appointee.”

School funding: “We have long supported the concept of the state revenues being tapped to offset the cost to property taxpayers,” said Lee. “New Jersey state government pays an average of 38 percent of the cost of public schools, where other states pay half, on average. This has put a tremendous burden on property taxes to pay for schools.

“NJSBA supports reasonable caps on spending, but we oppose the establishment of a ‘hard cap’ on budgets that would provide no adjustments for costs that are out of a district’s control.”

Visit www.njsba.org for summaries of the special session reports.