Governor Unveils 33-Bill Financial Toolkit

“With the right tools, school boards can control costs, without diminishing the community’s influence over education policy,” said Marie S. Bilik, NJSBA executive director, on Monday, following Gov. Christie’s announcement of his 33-bill “toolkit” to help school districts and local governments control costs.

Some elements of the extensive package of legislation support long-term NJSBA goals. Other parts, however, raise serious concerns for school boards. The proposals address finance, labor relations and personnel practices. NJSBA will conduct a complete analysis of the legislation needed to implement the plan when it becomes available.

Cap 2.5 The centerpiece of the package is “Cap 2.5,” a constitutional amendment creating a 2.5 percent “hard cap” on increases in the property tax levy for school, municipal and county purposes. The constitutional amendment would also place a 2.5 percent cap on spending growth of state operations, excluding increases in aid to school districts and municipalities.

For school districts and local governments, the proposal would provide a cap adjustment only for debt service. However, voters could approve a referendum, placed on the ballot in November or June, to allow a district budget to increase the school tax levy by more than 2.5 percent.

“NJSBA supports reasonable caps,” said Bilik. “But the definition of a ‘reasonable’ cap includes allowances for cost increases that are not within a local school board’s control. This past year, for example, local school boards were hit unexpectedly with a 24 percent increase in the cost of health insurance premiums. They might experience a similar increase next year.

“These types of cost increases are not controlled by local school boards. Even required employee contributions to the cost of health coverage, which we strongly support, would not make up the difference.

“NJSBA will urge the Legislature to make sure that any new cap provides for such adjustments. It’s a fair and reasonable approach that will enable the state to control future property tax growth,” she continued. “A cap without such allowances will be detrimental to education programs.”

Labor Law Changes The Association applauded the governor for proposing restoration of a local school district’s ability to implement its last best offer when contract negotiations are fully exhausted.

“The administration understands the strength this proposal would give local school boards in keeping negotiations on track. It would result in contracts that balance the students’ educational needs and the community’s financial interests,” said Bilik.

NJSBA also supports the governor’s proposal to give state fact finders specific criteria that take into account the community’s ability to pay for a contract and the current state of the economy.

“Such a change would clearly be in the public’s interest,” said Bilik.

Need to Go Further “Giving local school boards effective tools to use in collective bargaining will lower the cost of settlements. In some respects, however, the governor’s proposals need to go further,” the NJSBA executive director commented.

“We are disappointed that the toolkit does not include legislation to curtail employee job actions that negatively affect students’ education and are used to intimidate local school boards and communities—for example, job actions such as refusing to assign homework or write college recommendations, as well as the threat of illegal strikes.

“At the same time, there is no need for the state’s executive county superintendents to review local school district collective bargaining agreements,” said Bilik, referring to a proposal to give county superintendents the authority to reject settlements over 2.5 percent. She noted that over 75 percent of school districts negotiated some cost control measure over health benefits for 2009-2010. In addition, a majority successfully implemented provisions that have a positive impact on instruction time and practice.

School Elections The governor’s press release notes that the legislative package would move “school elections” to November.

“Our members, who serve on a non-partisan basis, have expressed opposition to the idea of running for school board office in the partisan November General Election,” said Bilik. That concern is reflected in NJSBA policy, which is set by its members.

In its press release, the administration did not make clear the extent of the proposed election change. For example, would the annual referendum on the school district base budget also move to November, when voters could act on any over-cap spending proposals? Or would the proposal eliminate the base budget vote entirely – a change strongly supported by NJSBA?

“School budget proposals are controlled by a tax levy cap and undergo intensive review by the executive county superintendents for efficiency,” said Bilik. “Such controls protect the taxpayers’ interest.

“NJSBA supports the concept of a consolidated non-partisan election in the spring, during which school board, fire district and non-partisan municipal positions would appear on the ballot. The change would eliminate two existing election dates, but preserve the non-partisan nature of these offices.”

NJSBA will provide members with details when the proposed legislation becomes available.

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