Budget
for SCC boosts oversight
New hires are banned until
Corzine review
Thursday, December 29, 2005 • BY DUNSTAN McNICHOL
• Star-Ledger Staff
After a year of criticism and internal
strife, the state Schools Construction Corp. yesterday
adopted a 2006 budget that would increase administrative
spending by about $2.6 million, with the focus on greater
oversight and accountability.
The $34.3 million budget comes with a
major caveat. Although it includes enough for an SCC staff
of 283, no personnel will be added to the current 245-person
staff until Gov.-elect Jon Corzine has a chance to review
the agency's operations and decide his plans for its future,
acting Chief Executive Officer Peter Maricondo told members
of the SCC board yesterday.
"The attrition within the agency should
be a concern going forward," said SCC Chairman Al Koeppe,
who was brought in to help retool the agency in May and
plans to relinquish his SCC post when acting Gov. Richard
Codey's term ends next month. "However, I do believe your
recommendation to hold the levels pending review by the new
administration makes good sense."
The agency's proposed administrative
budget covers the staff that manages the $6 billion school
construction program that lawmakers set up in response to a
state Supreme Court mandate five years ago. It would be
about 8 percent higher than the $31.7 million spending plan
adopted a year ago.
But 2005 hardly unfolded as envisioned by
the staff that framed that budget.
In February, The Star-Ledger reported the
SCC's schools cost 45 percent more than schools built
without the state agency's involvement, and a subsequent
state inspector general's review showed the agency was
riddled with management weaknesses.
In the wake of those findings, the
corporation suspended new work for about five months, scaled
back its plans, and replaced its board chairman and chief
executive officer.
As a result, staffing declined at the
agency and the corporation is on track to spend only $26.7
million of the $31.7 million.
Maricondo said the new administrative
plan reflects the changes recommended by the inspector
general by proposing 22 new positions in the state's project
oversight offices and 24 additional slots in the areas of
corporate oversight and contract management.
Staff for land acquisition, by contrast,
would drop by eight to reflect the agency's plans to forgo
purchasing property for schools the Legislature has not
allocated funding to construct, he said.
The school building program has been in
disarray since last winter, when former CEO Jack Spencer
revealed the program had committed the $6 billion lawmakers
authorized for the program in 2000.
In all, state officials have projected,
the $6 billion the Legislature allocated for the school
program will end up covering the cost to construct 71 new
schools and renovate or expand 67 more. The state had
promised more than 500 new or rebuilt schools.
Maricondo said the SCC so far has spent
$3 billion, and that it will likely take another three years
to wrap up work on the other projects slated for funding
with the remaining $3 billion.
Dunstan McNichol covers state government issues. He may
be reached at dmcnichol@starledger.com or (609) 989-0341.
© 2005 The Star-Ledger. Used by NJ.com with
permission.
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