School-building agency halts 97 projects as funds dry up

Monday, October 03, 2005 • BY DUNSTAN McNICHOL AND STEVEN CHAMBERS • Star-Ledger Staff

Hoping to conserve dwindling funds for schools they can afford to build, officials of the state's Schools Construction Corp. have ordered architects and engineers to stop work on 97 projects that were on the drawing board.

The new order halts progress on jobs the state already has spent $187 million on to cover land acquisition and design costs. The controversial decision also has raised concerns among local school officials, who fear it will further delay thousands of modern classrooms the Supreme Court ordered for needy school kids more than seven years ago.

"This is a decision that makes no fiscal sense," said David Sciarra, executive director of the Education Law Center, the Newark not-for-profit that won the 1998 court order requiring the school construction program. "If the state were serious about efficiently using its resources they would have completed these designs."

The work suspension is the latest fallout from the collapse of the Schools Construction Corp., a state agency set up to administer a $6 billion overhaul of hundreds of public schools in 31 needy communities. That money has all been spoken for, with not even one-third of the schools built.

At the same time, the agency is undergoing a complete overhaul in the wake of a series of reports that found it was wasting millions of dollars through excessive professional fees and poor management. The reviews began in February, after a Star-Ledger analysis showed the first six schools built by the state agency cost, on average, 45 percent more than 19 schools built without the agency's involvement at the same time.

In July, members of the reconstituted schools corporation voted to continue work on just 59 of 266 projects in the works. This week's order clarifies that decision by ordering professional architects and engineers to stop working on 97 of the shelved projects that were already in various stages of architectural development.

 

NEW SOURCE OF FUNDING NEEDED

"The purpose of this suspension is to ensure that the SCC does not continue to spend dollars on projects that are unable to be constructed with this round of funding," Peter Maricondo, the SCC's acting chief executive officer, said in a Sept. 28 letter to school superintendents informing them of the new order.

Of the 97 projects affected, 35 are in the final stages of architectural development -- the development of designs that are the basis for construction bids. Those design projects will be finished under the state's new order. Architects, however, would not be on hand to do any further work that usually comes following the bid process.

Another 20 projects will be closed down when the architects have completed the project development, but have not started drawing up documents needed to put a project out to bid. The other 42 projects are still in the early stages of design work, and will not proceed any further.

Kevin McElroy, spokesman for the schools construction corporation, said the state plans to lift the suspension as soon as lawmakers find a new source of funds for the program.

"We anticipate, with additional funding, being able to move these projects," he said.

But officials who have been awaiting the projects say they fear it will be time-consuming and costly to restart the projects.

"There's a lot of work that could have been done," said Richard Shapiro, a lawyer representing 13 school districts in a case seeking a court order to have the state provide more funds for the building program. "Now it's going to create even further delays after the money is awarded."

 

'IT MAKES NO SENSE'

Passaic Superintendent Robert Holster, whose district has four school projects suspended under the order, called the decision "tragic."

"Maybe we should use some of this money and start building jails for the people who squandered this money," he said.

In Newark, where work on 11 schools has been suspended by this week's order, officials worried they eventually will have to discard work that has already been done on some of those projects. The state has already spent $47 million buying property and starting design work on those schools.

"It makes no sense," said Raymond Lindgren, assistant to Newark Superintendent Marion Bolden. "I don't know how you continue with the same architects, and no architect will pick up a job in the middle."

Michael Harris Spector, whose architectural firm, The Spector Group, is handling seven of the suspended projects, said those concerns are unfounded.

"We just put it on a shelf," he said. "We'll just bring it back when they tell us to begin again."

But Spector said he regrets the time lost to the work suspension.

"I feel terrible that at the end of the day the losers are not the architects or the New Jersey Schools Construction Corp., they're all the kids," he said.


© 2005 The Star-Ledger. Used by NJ.com with permission.

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