Legislators No Closer to Budget Deal

Bill Calls for $2.5 Billion in School Construction

Superintendent Contracts at Issue: An Update

Education Legislation Moves in Senate Ed Committee

November Elections, Administrative Cuts Stall

Schools Wait for Accountability Regs

Notice of NJSBA Strategic Plan Meeting

Calendar

Click here for a pdf version of this issue of School Board Notes

With the end of the state’s June 30 fiscal year looming, New Jersey lawmakers are still in negotiations on Gov. Jon Corzine’s proposed $33 billion budget.

New Jersey’s constitution requires the state’s annual budget to be approved by July 1. Both the governor and legislative leaders had discussed June 16 as a target date for passage of the budget, but it became clear this week that a mid-June budget agreement had become unlikely.

The main point of contention between Corzine and key Democratic lawmakers is the governor’s early retirement plan for state workers.  While the plan would produce immediate budget savings and avert large-scale layoffs, the legislators are concerned about its long-term costs.  They are proposing a series of reforms to the public employee pension system that, they say, would offset these costs.  Corzine, however, is resistant to implementing pension changes through the appropriations act, preferring to address them through the negotiations process.

Meanwhile, several Republican leaders, including Senate GOP leader Tom Kean and Assembly Republican leader Alex DeCroce, introduced a plan last Thursday that would shift more than $1 billion to restore property tax rebates and aid to municipalities, while paying for road construction without gas tax increases. That plan cuts aid to urban school districts and municipalities, and proposes reforms to state workers’ pensions and benefits, among other measures.

State budget negotiations have a significant impact on local school districts. State aid for public education is the largest single allocation of state funding. Moreover, legislators often insert “footnote” language in the budget bill, enabling it to become law. This year, there is concern that some of the proposed school district accountability regulations could be instituted through such legislative maneuvers, rather than the usual process where the State Board of Education would hold public hearings on such proposals.

NJSBA is closely following the budget process and will continue to notify members of budget developments through School Board Notes, e-mails and legislative updates on NJSBA's Web site.