GOVERNOR TOURS OLIVER STREET SCHOOL

Reaffirms Commitment to School Construction Effort

Newark - Governor Jon S. Corzine today toured the Oliver Street School with other state and local officials to view the crowded and rundown conditions in which the school’s approximately 800 students attend classes everyday.

“This is just one of many examples of the critical work that still needs to be accomplished to improve the learning environment of our children,” said Governor Corzine. “Thanks to legislation recently introduced by Assemblyman Coutinho and Assemblywoman Spencer, we hope to be able to fulfill that obligation with an additional $2.5 billion to fund school facilities projects. Students need to be in quality surroundings that bolster rather than hinder their academic progress – New Jersey students deserve no less.”

The bill, A2873, will increase the New Jersey Economic Development Authority’s bonding limit by $2.5 billion for the State share of School Development Authority district school facilities projects. The bill also specifies that debt service for these bonds will be payable from revenues received from the gross income tax.

The new bonding would allow for 27 deferred projects to be concluded and approximately 20 new projects to be completed.

“Those who are concerned about the previous waste and inefficiencies of school construction in New Jersey’s history should take note,” Governor Corzine said. “We have revamped the entire agency, now called the Schools Development Authority, and not just in name only. The SDA is leaner, more efficient, and there’s accountability to the State and its taxpayers because we put safeguards firmly in place.”

In August 2007, Governor Corzine signed legislation reorganizing the Schools Construction Corporation to the New Jersey Schools Development Authority. The SDA now focuses solely on the construction of schools in the Abbott districts while the New Jersey Economic Development Authority retains the responsibility to provide financing for school facilities projects. Other reforms that have strengthened the program include changes to land acquisition policies and procedures and a new process to sequence projects in the Abbott districts based on educational priorities and needs.

“Far too many children continue to attend schools that are barely able to provide a 20th Century education, let alone a 21st Century one,” said Assemblyman Albert Coutinho (D-Newark), a prime Assembly sponsor of legislation to provide the $2.5 billion in school construction funds. “With new safeguards in place and professionals committed to keeping an eye on the bottom line, the SDA is ready and able to handle this tremendous task. Unless we put shovels in the ground now, we may never get this essential program back up-and-running.”

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WHERE WE ARE:

• The full $8.6 billion in funding designated for school construction projects has been obligated. Of those funds, $6 billion was allocated for Abbott districts, $100 million for vocational schools, and $2.5 billion for other Non-Abbott districts. SDA is still in the process of drawing down the bonds from the initial funding authorization
• When funding grew short in 2005, a capital plan was formulated with a list of 59 projects to be funded with the remaining bonding authority.
• In September 2006, the Interagency Working Group on School Construction recommended an additional $2.5 billion in additional bonding for the Abbott districts.
• The Corzine Administration recognized the program faced a structural deficit due to inaccurate 2005 estimates and announced in April 2007 that 27 of the 59 projects would need to be deferred.
• In August 2007, Governor Corzine put an end to waste and mismanagement by signing legislation reorganizing the Schools Construction Corporation (SCC) to the Schools Development Authority (SDA).
• In January 2008, Governor Corzine renews effort for funding for school construction projects to maintain legal and moral obligation set forth by the New Jersey Supreme Court.
• A2873 is introduced in May 2008 to increase the New Jersey Economic Development Authority’s bonding limit by $2.5 billion for the State share of School Development Authority district school facilities projects.

STATUS OF SDA PROJECTS:

• To date, 98 major projects have been completed by SDA/SCC in the Abbott districts, including new buildings, additions/renovations, and rehab projects.
• Fourteen major projects in the over-55% districts, i.e. projects managed by the SDA in districts that receive 55% ore more of their budgets in state aid. Under August 2007 legislation, such districts will manage their own projects.
• Two demonstration projects have been completed: Camden and Vineland.
• 354 health and safety projects have also been completed in the Abbott districts.
• There are 25 active major construction projects in the Abbott districts, including new schools, additions, and major rehabs.
• There are 8 active major construction projects in the over-55% districts.
• There are 4 active demonstration projects underway: Trenton, New Brunswick, East Orange and Union City.

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Photos from Governor Corzine's public events are available in the Governor's Newsroom section on the State of New Jersey web page.