School
districts rush for construction aid
State fund lags ballot proposals
in suburbs
Tuesday, August 16, 2005 • BY STEVE CHAMBERS •
Star-Ledger Staff
Suburban and rural districts across New
Jersey are racing to claim the last dollars available from a
$2.5 billion school-building fund, which for five years has
helped lower tax increases and get bond issues
passed.
But they're in for bad news.
An official at the Schools Construction
Corp. said yesterday that just $60 million is left in the
fund, clearly not enough for all the projects voters are
scheduled to consider on Sept. 27.
Dominick DeMarco, an SCC spokesman,
initially said the money would be given out on a first-come,
first-served basis. He later said the agency was drafting a
policy in consultation with the state attorney general and
Department of Education to determine who wins
grants.
"The amount on the ballot is more money
than we have," DeMarco said.
That is an understatement, as districts
are asking voters to approve about $906 million in projects,
which would be a record according to data collected by the
New Jersey School Boards Association. Districts are eligible
for grants of up to 40 percent of project costs deemed
eligible by state Department of Education.
At least two districts -- Caldwell/West
Caldwell and Eatontown -- withdrew referendums in recent
weeks based on uncertainty over state grants.
"We're going to wait until December and
see if the Legislature replenishes the fund," said Eatontown
Superintendent Nina Hoover.
But others interviewed said they are
forging ahead because the construction work is necessary.
Those officials conceded that the uncertainty makes selling
the initiatives to voters more difficult.
"We're optimistic and hopeful the
community will embrace these needs," said Nutley
Superintendent Joseph Zarra, whose district plans to
refurbish all six elementary schools, some of which are 100
years old. "If the money runs out, then we will look for
alternatives."
Confirmation that the fund is nearly dry
comes as supporters of the program lobby the state for more
money. But it also provides another bit of controversy for
the SCC, which has been under fire for mismanaging its
oversight of a separate, $6 billion fund for the state's
poorest districts.
While the SCC oversees all construction
in poor districts, it only doles out money to the largely
suburban and rural districts eligible to tap into the $2.5
billion fund.
School advocates criticized state
education officials for waiting too long to advise districts
about the shortfall and then downplaying the bad news for
fear of looking bad.
"The state is passing the buck on this,"
said Lynne Strickland, executive director of the Garden
State Coalition, a group of largely suburban districts.
"They don't want to deal with the difficult
news."
Mike Yaple, a spokesman for the New
Jersey School Boards Association, said his group is hearing
from frustrated locals who say they can't get straight
answers.
"The DOE says they don't know; the SCC
says they can't say for certain," Yaple said. "Meanwhile,
the acting governor says he'll let the next Legislature deal
with the problem. We need some leadership and some clear
answers."
State officials argue that they have been
trying to break the news, albeit gently. In April, after the
last round of ballot initiatives, officials advised
districts that money was running out.
Then, in June, Jack Spencer, the chief
executive officer of the SCC, testified that there was only
about $100 million left in the pot.
As districts began hearing that money was
running out, a large number of them decided to go after that
dwindling pool and put projects on the September ballot. As
of yesterday, 35 districts had scheduled votes.
If a district approves a bond referendum
next month and doesn't get a grant, then taxpayers would be
on the hook for the full amount, unless legislators come up
with money.
On July 5, the education department sent
a memo to districts warning they might need to consider an
alternative aid program run by the department, which
provides annual debt-service relief to towns. John Zlock, a
department spokesman, said there was no guarantee that
program could provide relief equivalent to the SCC grant
program.
Superintendents are wary of the education
department program because it is doled out annually, and
legislators have not always funded it fully.
In Madison, where school officials hope
to conduct major overhauls worth more than $45 million --
and get an $11 million state grant -- school board President
Lisa Ellis said work is desperately needed.
"It's unfortunate we've been put in this
situation, but we're hoping (the uncertainty) won't affect
the vote," she said. "Our bond counsel has reassured us, but
who knows? Our job is to communicate the needs to the
community."
Superintendent Eugene Vasile, whose
district of Parsippany/Troy Hills plans work worth nearly
$50 million, said officials decided to take a conservative
approach, telling voters it is uncertain whether state aid
will arrive.
Voters have grown generous with the
advent of the state grants, with approval rates statewide
jumping from about 50 percent to 70 percent in recent
years.
"We're left in the lurch by the
speculative nature of the funding," Vasile said. "So we'll
get our message out to voters, and hopefully they will
understand the necessity for the project. Then we'll deal
with the bureaucratic issues Trenton has
created."
Steve Chambers may be reached at schambers@starledger.com
or (973) 392-1674.
© 2005 The Star-Ledger. Used by NJ.com with
permission.
|