Local school districts to pursue construction funds New state law gives suburban communities

Local school districts to pursue construction funds
New state law gives
suburban communities

JERRY WOLKOWITZ It’s a sign of the times in Western Monmouth County – a new school being built, such as this one on Millhurst Road, Manalapan. Although the cost of this school will not be supported by state funds, new legislation signed into law by Gov. Christie Whitman is expected make state funds available for the construction of schools in suburban communities.

a slice of huge $8.6B pie

Administrators in three local school districts said this week they will pursue state funding that now appears to be available to aid in the construction of new schools.

On July 18, Gov. Christie Whitman signed a school construction bill, making $8.6 billion available to school districts throughout the state.

A press release from Whitman’s office called the package "the largest, most comprehensive school construction program nationwide."

Whitman touted the legislation as an act that will aid school districts in the Garden State’s neediest towns as well as school districts in wealthier suburban communities.

"Crumbling buildings are no place to send our students," said Whitman. "That’s certainly true in the 30 Abbott (neediest) districts, which will receive full state funding for all necessary facility improvements. But we know that many more schools are showing their age and need attention.

"This bill answers the (state Supreme Court’s) Abbott mandate responsively and responsibly," continued the governor. "What’s more, through the teamwork of the legislature and my administration, our program will enable every district in New Jersey — urban, suburban, and rural — to give our children safe and secure classrooms. In the process, it will relieve pressure on the property tax for these projects."

The bill, S-200, which creates the Educational Facilities Construction and Financing Act, was sponsored by senators William L. Gormley and John A. Lynch and Assembly members Jack Collins and Joseph R. Malone III.

Whitman had previously conditionally vetoed the bill to provide that the construction program be operated by the New Jersey Economic Development Authority (EDA), which has a strong record in financing and building major capital projects, according to the governor.

The school construction program will address the facilities needs in the Abbott districts as directed by the New Jersey Supreme Court, as well as the needs of non-Abbott districts. Any district which wants to undertake a school construction project will be required to apply to the Commissioner of Education for approval of that project.

The commissioner will review the proposed project to determine eligibility for aid.

While the bill addresses the needs in the Abbott school districts as directed by the Supreme Court, it also provides a mechanism for the funding and construction of school facilities statewide.

In 1998, the Supreme Court ruled in the Abbott vs. Burke case that the schools in 30 of the state’s neediest districts (or Abbott districts) needed rebuilding.

Under the bill, Abbott districts will be required to use the EDA for the construction of school facilities projects and will have all of their eligible costs paid by the state. In addition, districts which have a state support ratio equal to or greater than 55 percent will also be required to use the EDA for the construction of school facilities projects.

Meanwhile, a district which has a state support ratio of less than 55 percent can construct the project on its own or use the services of the EDA for construction. If the district determines to handle the project on its own, then the district has the option of either receiving a one-time grant for the state share of the project or annual debt service aid on the project’s final eligible costs.

With the signing of the school construction package by Whitman, a portion of the $69 million referendum approved by voters in the Freehold Regional High School District in December could be paid for by the state.

While no exact figures as to how much aid the district may receive are available this early in the law’s existence, Superintendent of Schools James Wasser said the Board of Education will apply for whatever funding the district is entitled to.

"I’m happy there is some allocation. Most of the money is going to go to the Abbott districts for their construction projects," Wasser said, "but a portion of the money has been allocated for suburban areas and districts which have gone through referendums that go back to September 1998. I’ve talked to the Board of Educa-tion and we are going to actively pursue whatever kind of allocation we may be entitled to."

Wasser said he has asked Dr. Joan Nesenkar Saylor, business administrator, to look into the matter and find out what applications will be involved, and whether this will be an entitlement or competitive money.

"If there is an allocation out there and we can get any portion of that money, then we are going to actively pursue it," Wasser said.

Marlboro Superintendent of Schools Dr. David Abbott said he expects his district will see some benefit from the school construction fund.

"Based on published accounts of the new legislation, Marlboro can expect to realize 40 percent aid for the construction of our two new schools," Abbott said.

Marlboro voters approved a $42 million referendum on March 14 to construct an early childhood learning center on 10 acres at Harbor and Tennent roads and a middle school, the district’s second, on 27 acres on Nolan Road.

"At this point we don’t know exactly in what framework we would receive the construction aid, but we’re hopeful we’ll receive it," Abbott said. "The district will move ahead with its plans for the two schools, which are in the preliminary phases of preconstruction, and wait for official notification from the state Department of Education on receipt of this aid."

Colts Neck School District administrators find themselves in the same situation as officials in the Marlboro and Freehold Regional districts. In March, voters in Colts Neck approved the construction of a $17.7 million pre-K through second grade elementary school on Conover Road.

Asked if school officials believe Colts Neck will get a share of the state construction fund, Business Administrator John Paredes said, "Absolutely. According to our interpretation of the legislation, we will be entitled to 40 percent aid on our construction package."

The one caveat Paredes issued is that residents should not necessarily calculate 40 percent of the district’s $17.7 million referendum as the share to be paid by the state.

Part of the formula to be used for "divvying up the aid" to non-Abbot districts, as Paredes put it, will be the cost per square foot of a school district’s construction package.

A cost per square foot will be determined by the state Department of Education, and if that figure doesn’t match the cost per square foot as determined in the district’s package, there may be a difference between the 40 percent eligibility level and the actual amount of aid received by a non-Abbott district, he explained.

Regardless of that technical point, it appears that the Colts Neck, Marlboro and Freehold Regional districts will be in line for some level of state funding.

The school construction legislation will not, however, help the Manalapan-Eng-lishtown Regional School District, which is building a new elementary school on Millhurst Road, Manalapan.

The $29.8 million project, which also includes additions at several existing schools and the construction of a bus facility, was approved by voters in a March 1998 referendum, according to Superin-tendent of Schools Joseph Scozzari.

The $8.6 billion construction package signed into law by the governor last week applies to projects approved in September 1998 or later.

But Manalapan and Englishtown residents shouldn’t feel left out. District administrators have indicated that the school now rising on Millhurst Road won’t be the last building to be constructed in the growing district. The next school to be built — someday — is likely to be eligible for state construction aid.

Following the signing of the bill into law, Edwina M. Lee, executive director of the New Jersey School Boards Associ-ation, said, "The legislation will help local school districts decrease the amount of debt they would otherwise have to incur to build schools. It will reduce the burden on local property taxpayers to pay for new or upgraded facilities.

"Therefore, it will enable communities to more easily provide the school facilities their children need," Lee said. "Moreover, by making the funding retroactive to September 1998, it will help those districts that, for reasons of student health or safety or burgeoning enrollment, had to move forward with their facilities programs before the legislation was finalized.

"During the coming months, the state will set up the procedures to put the construction program into effect and distribute the funds. NJSBA will work with the education community in continuing to provide input as we enter the crucial implementation phase," Lee added.

News Transcript Managing Editor Mark Rosman and staff writers Dave Benjamin and Bob Fleming contributed to this story.