District studies legal action to get money for high school

Friday, July 29, 2005 • By PRECIOUS PETTY • The Express-Times

PHILLIPSBURG -- A day after devastating news that the Phillipsburg School District will not receive long-promised state money to build a new high school, Superintendent Gordon Pethick rallied and vowed to see the construction project through by legal means if necessary.

"We fought long and hard for this project and we're not done," he said Thursday. "We've already been in contact with our attorney."

The district is exploring every avenue -- including an appeal to the state's highest court -- that may lead to the restoration of the subsidy for the project, Pethick said.

"I wouldn't be surprised if very shortly you see some action at the Supreme Court level," he said.

Despite Phillipsburg's status as one of New Jersey's Abbott, or most needy, districts, a state agency announced Wednesday that it had nixed plans to pay for the roughly $90 million high school with the last $1.4 billion of a special fund.

Phillipsburg and other Abbott districts statewide were left in the lurch when the New Jersey Schools Construction Corp. revealed it had only enough remaining from a $6 billion fund to finance 59 of an anticipated 350 projects.

Phillipsburg's plan to renovate Andover-Morris Elementary School for an estimated $13 million also was rejected by the SCC, Pethick said.

The Abbott fund was created in 2000 after the landmark Abbott v. Burke rulings, which require the state to pay Department of Education-approved construction costs for Abbott districts. Phillipsburg is one of 31 such districts in New Jersey.

Former Gov. James McGreevey created the SCC to oversee school construction projects and expedite distribution of the $6 billion and an additional $2.6 billion for non-needy districts.

Pethick said it's essential that Abbott districts, both those that made the SCC's "cut list" and those that did not, stick together in their efforts to wrestle additional funding from the state.

"We're not in this against any of the districts that achieved the accomplishment of being on that list," he said. "We're not in this to say to some other Abbott district, 'Your kids don't deserve this; our kids do.'"

Costly decision

Spokesman Dominick DeMarco said a special committee of the SCC board of directors whittled proposed projects to a final 59 using criteria such as safety, classroom ratio and project progression.

"These were not easy decisions to make by any stretch of the imagination," he said.

New Jersey School Boards Association spokesman Frank Belluscio said the proposed projects wouldn't have withstood DOE scrutiny if they weren't worthy of funding.

"The projects are based upon five-year facility reports. These districts have to identify the construction that is needed and why it's needed. There is a lot of documentation behind these projects," he said.

State Sen. Leonard Lance, R-Hunterdon/Warren, said the money shortfall is a symptom of the SCC's malfeasance.

Recent reports found school projects managed by the SCC cost 45 percent more than new schools in the suburbs over the same period. Also a special state investigation of the state agency earlier this year found waste and potential for fraud.

"This is definitely not Phillipsburg's fault," Lance said. "Phillipsburg has been victimized by those who have run the school construction program without accountability as have other districts throughout New Jersey."

Lance, the Senate minority leader, said he is in favor of borrowing to replenish the Abbott fund, but only with voter approval. He would also like to see the Abbott program analyzed to determine the exact cause of the shortfall.

DeMarco said comparing the cost of urban school projects to that of suburban school projects is like trying to match up apples with oranges.

"There are far too many differences between the two to make it an easy and logical comparison. There are a lot of factors that are going to add to the cost of an urban (school project) that you're just not going to run into in a suburban or more rural setting," he said.

Moving forward

David G. Sciarra, executive director of the children's advocacy organization Education Law Center, said Phillipsburg and other districts whose projects were rejected will have a strong case if they end up in court because the state is required by law to pay for Abbott districts' construction costs.

However, Sciarra said districts should reserve a Supreme Court appeal as a last resort and first focus their attention on Lance and other legislators.

"There's an urgent need for funding across the board. The governor and the Legislature really have to come together quickly and have a serious debate about reforming the program and putting in more money to keep it moving forward," Sciarra said.

Site work at the new Phillipsburg High School location in Lopatcong Township is already under way and district business administrator Bill Poch said it will continue.

By the time that work wraps up in late November, he is hopeful the district's problems with state funding will be history.

"If the first work finishes at that point, we're going to start the building then," Poch said.

Before Wednesday's announcement, SCC officials said they expected to bid for the facility construction phase by the end of this year. The project completion date was set for 2008, but is likely to move further into the future in light of the recent developments, Poch said.

Joan M. Ponessa, the director of research for the Education Law Center, said she was shocked when she learned the new Phillipsburg High School wasn't on the SCCs short list because the project had progressed so far.

"I thought it was given that they were going to move forward with that one. That's been going on for a long time," she said.

Currently, there are 31 trailers outside the existing high school building, and the district anticipates adding several more at the start of the 2006-07 school year, Pethick said. If the completion date is moved, the district may have to install yet another round of trailers, something they had not anticipated, he said.

The longer it takes to resolve the funding issue, the more it will cost the state, Pethick said. "Time is truly money when you're talking about construction."

Ponessa agreed.

"We're losing huge amounts of money by doing this. The cost of construction is going up dramatically. Every month they lose the whole process is going to cost more," she said.


Reporter Precious Petty can be reached at 610-258-7171 or by e-mail at ppetty@express-times.com.
© 2005 The Express-Times. Used with permission.

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