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Corzine Signs Executive Order to Facilitate Review and
Reform at Schools Construction Corporation
TRENTON - Governor Jon S. Corzine today signed an Executive Order creating a new position of oversight of the School Construction Program and a new working group that will oversee a full review of the program and recommend reforms. Corzine also appointed 6 new members to the Schools Construction Corporation (SCC) Board of Directors, including Barry L. Zubrow, who will serve as Chairman, and named Scott Weiner to the new oversight position of Special Counsel.
“This executive order reflects my commitment for reform of the Schools Construction Program,” said Corzine. “I have full confidence that with the help of Scott Weiner and Barry Zubrow, this administration will be able to work with local boards of education and communities to ensure the school construction program delivers schools that meet the needs of our children at the best price.”
Barry Zubrow is currently a member of the Board of Directors for Nuvelo, Inc. and GSC Capital Corp, and has more than 26 years of corporate finance experience. Zubrow worked at Goldman, Sachs & Co. from 1977 to 2003, where he served as the Chief Administrative Officer and head of the Operations and Administration Division. He also serves as Chairman of the Board of Haverford College and is a Director of the Juvenile Law Center. Zubrow earned a Juris Doctor and a Masters in Business Administration from the University of Chicago, and a Bachelor of Arts from Haverford College. He resides in New Jersey with his wife and two children.
“This is a complex and difficult challenge, but I am confident that working with the new board we will be able to successfully focus the SCC on its construction management responsibilities.” Zubrow said. “Making this agency efficient and accountable is an important goal that when accomplished will go a long way towards offering New Jersey’s students a better education and brighter future.”
Scott Weiner currently works as a Faculty Fellow and the Director of the Center for Energy, Economic and Environmental Policy at the Bloustein School of Planning and Public Policy at Rutgers University. Weiner also served as Chief Counsel to Governor Florio, Vice Chair of the Executive Commission on Ethical Standards and Executive Director of the New Jersey Election Law Enforcement Commission. Weiner’s state government experience also includes serving as the Commissioner of the Department of Environmental Protection and Energy, and president of the Board of Public Utilities. Weiner earned at Juris Doctor from New York Law School and a Bachelor of Arts in Political Science from New York University. He resides in Plainsboro and has two adult children.
“Governor Corzine is committed to a process that is transparent, collaborative, and effective in bringing schools to students and their communities in the most efficient and effective ways possible,” Weiner said. “I look forward to working with the leaders at the SCC, the Departments of Education and Treasury, the legislature and all stakeholders to make Governor Corzine’s commitment a reality.”
The special counsel serves as the governor’s representative on the SCC, reports directly to the governor and has access to the support and resources of the Department of Law and Public Safety. Special counsel also has the authority to call on any department or agency in state government for assistance. The position of Special Counsel is intended to be temporary and last through the initial evaluation and transition period.
The E.O. also forms an interagency working group charged with the task of conducting a far-reaching review of the entire school construction program in order to develop recommendations for its reform. The group will also consider recommendations for a full reorganization of the SCC.
The working group will be comprised of the Acting Commissioner of Education, the Acting Treasurer, the Special Counsel and Chairperson of the SCC. The working group will be assisted by an advisory panel of citizens.
The working group will present the Governor with an initial written report of recommendations to provide immediate improvements in the management and operation of the SCC by March 15.
Additionally, the Governor has directed the Attorney General to provide assistance to the SCC to conduct an immediate and full review of all SCC contracts and projects, and to promptly commence legal proceedings to recover state funds disbursed due to design errors, overcharging or other circumstances where the SCC has the right to seek recovery.
Governor Corzine also appointed the following five individuals to serve as public members on the SCC Board of Directors.
Raymond M. Burke III
Burke has served as the President and owner/operator of Burke Motor Group for the past 31 years. He is a member of the executive committee of the New Jersey Committee of Automotive Retailers, Director of the General Motors Dealer Marketing Association, Trustee of the Wetlands Institute and member of the Board of Directors for the Center for Policy Research of New Jersey. Burke has also been an alternate member of the Economic Development Authority since February 2004. He earned a Bachelor of Arts in Government and Law from Lafayette College. He resides in Avalon.
Laurence M. Downes
Downes is Chairman of the Board and Chief Executive Officer of New Jersey Resources Corporation and its principal subsidiary, New Jersey Natural Gas Company. He is a member of the American Gas Association and New Jersey Manufacturers Insurance Company, as well as Chairman of the Board of Trustees for Georgian Court College and Chairman of the Jersey Shore Partnership. He earned a Masters of Business Administration and a Bachelor of Arts from Iona College. He resides in Princeton Junction.
Cecil R. House
House has served as Vice President of Supply Chain Management for Public Services Enterprise Group since 2003. In the past he has also served as Vice President of Business Development for Automated Data Processing, Partner at McDermott, Will & Emery and Senior Associate at Debevoise & Plimpton. House is a member of Leadership New Jersey and the Corporate Advisory Board for the Thurgood Marshall Scholarship Fund. He has been an alternate member of the Economic Development Authority since March 2005. He earned a Masters in Business Administration from Columbia University, a Juris Doctor from Harvard Law School and a Bachelor of Science in Finance and Management Information Systems from the University of Virginia. He resides in South Orange.
Joseph A. McNamara
McNamara has been the Director of New Jersey Laborers’ Employers Cooperation and Education Trust since 1996. He previously worked with the Port Authority of New York and New Jersey for 25 years, and as the Deputy Commissioner of the New Jersey Department of Commerce and Economic Development. McNamara has served on the Board of Directors for the New Jersey Alliance for Action, the Commerce and Industry Association of New Jersey and the United Way of Essex/West Hudson. He has been a member of the Economic Development Authority since 2000. McNamara earned a Masters in Business Administration from New York University, a Master of Arts in Psychology from the New School for Social Research and a Bachelor of Arts in Finance from Seton Hall University. He resides in Leonardo.
Gabriella Morris
Morris has served as the Vice President of Corporate Social Responsibility for the Prudential Insurance Company and President of the Prudential Foundation since 1994. Previously she served as Regional Counsel for the Newark Realty Group office. She is a member of the New Jersey Public Broadcasting Authority, the Middletown Township Planning Board and the New York Regional Association of Grantmakers. She earned a Juris Doctor from the University of Texas School of Law and an Artium Baccalaureatus in Architecture and Urban Planning from Princeton University. She resides in Basking Ridge.
Public members of the SCC Board of Directors are directly appointed by the Governor, serve 3-year terms and are eligible for reappointment. Any vacancies are filled for the unexpired portion of the term. Board members serve without compensation except for any expenses related to the performance of their duties.
The full text of Executive Order #3 is below:
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EXECUTIVE ORDER NO. 3
WHEREAS, ensuring the provision of quality educational facilities to all New Jersey school children is a fundamental constitutional obligation of the State; and
WHEREAS, the New Jersey Supreme Court has articulated the urgent necessity for the State to provide for the construction, modernization and repair of educational facilities in the Abbott Districts; and
WHEREAS, the New Jersey Legislature has enacted the Educational Facilities Construction and Financing Act, P.L. 2000, c.72 (“the Act”), to address inadequacies in the quality, safety and utility of educational facilities throughout the State; and
WHEREAS, Executive Order No. 24 (2002) directed the New Jersey Economic Development Authority (“EDA”) to establish a subsidiary corporation to carry out the statutory obligations of the EDA under the Act for funding and undertaking the repair, renovation, and construction of all school facility projects determined by the Commissioner of Education to meet the school facilities efficiency standards in the Abbott Districts and for undertaking construction of school facilities projects in districts receiving over 55 percent in State aid for education and the “Level II” monitoring districts; and
WHEREAS, pursuant to Executive Order No. 24 (2002), the EDA established the entity now known as the Schools Construction Corporation; and
WHEREAS, implementation of the School Construction Program has been the subject of evaluation and criticism by the Office of the Inspector General and others in government and by the media and the community at large; and
WHEREAS, specific weaknesses have been identified in, and specific criticisms have been directed to, the areas of the management of design and construction activity and financial controls; and
WHEREAS, the effectiveness of the School Construction Program will be enhanced by (1) increased activity and leadership by the Department of Education in establishing criteria for, and in the evaluation of, the Long Range Facility Plans; and (2) more effective and focused prioritization and accountability by local school districts in the program; and
WHEREAS, the effectiveness of the School Construction Program also will be enhanced by the active involvement of the Board of Directors of the Schools Construction Corporation with its full complement of public members and with leadership by a chairperson who has significant experience and expertise in financial and operational management and oversight; and
WHEREAS, while reforms have been initiated by the Schools Construction Corporation in the areas of fiscal and operations management, further reforms are needed to assure the public that strict controls are in place and that funds for school construction are being spent consistently with legal requirements and in accordance with educational priorities; and
WHEREAS, it is imperative that, while we immediately implement necessary measures to improve the School Construction Program, we also consider and evaluate all options for a new structure for the Program to ensure that it efficiently delivers the schools our children need at the best price through time; and
WHEREAS, an effective and successful evaluation and transition plan will require collaboration among a number of State agencies while significant reforms and improvements are initiated at those agencies; and
WHEREAS, this reform and improvement process will be enhanced by the designation, on a temporary basis, of an official who will report directly to the Governor and who will be principally responsible for ensuring interaction and collaboration among these agencies; and
WHEREAS, the establishment of an Interagency Working Group charged with specific tasks and with initial reporting dates will further enhance the reform and improvement process; and
WHEREAS, the Interagency Working Group will benefit from input from an advisory panel of representatives from the community;
NOW, THEREFORE, I, JON S. CORZINE, Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and by the Statutes of this State, do hereby ORDER and DIRECT:
1. The position of Special Counsel to the Governor for School Construction (“Special Counsel”) is hereby created. The Special Counsel shall be appointed by, serve at the pleasure of, and report to the Governor. During the period of appointment the Special Counsel shall also serve as a Special Assistant Attorney General and shall, in consultation with the Attorney General, have access to the support and resources of the Department of Law and Public Safety, including without limitation such clerical and support staff as may be necessary to discharge the responsibilities under this Executive Order.
2. The Special Counsel is authorized to call upon any department, office or agency of State government to provide such information, resources or other assistance deemed necessary to discharge the responsibilities under this Executive Order. Each department, office, division, and agency of State government is required to cooperate with the Special Counsel and to furnish the Special Counsel with assistance necessary to accomplish the purpose of this Executive Order.
3. The Special Counsel shall serve as the Governor’s representative in all matters pertaining to the management and operations of the Schools Construction Corporation and shall serve on the Corporation’s Board of Directors in the position designated in Executive Order No. 24 (2002) for a member of the Governor’s Executive Staff.
4. The Board of Directors of the Schools Construction Corporation, with assistance from the Interagency Working Group on School Construction created herein, shall immediately commence a broad-based search for a permanent chief executive officer.
5. There is hereby formed an Interagency Working Group on School Construction (the “Interagency Working Group”) that shall be comprised of the Special Counsel, the Acting Commissioner (or Commissioner) of Education, the Chairperson of the Schools Construction Corporation, and the Acting Treasurer (or Treasurer). The Special Counsel shall serve as the chairperson of the Interagency Working Group. The Interagency Working Group is hereby authorized and directed to review the entire School Construction Program and the laws, regulations, and policies governing educational facilities and to develop recommendations for reform, including recommended statutory and regulatory initiatives, to be presented to the Governor. In addition to any other topics that the Interagency Working Group may consider, specific recommendations are to be developed addressing the reorganization of the Schools Construction Corporation, considering such options as creating a new educational facilities authority in the Department of Education or the Department of Treasury, or by enhancing the capabilities of the New Jersey Building Authority.
6. The Interagency Working Group is further authorized and directed to develop recommendations for consideration by the Schools Construction Corporation and the Acting Commissioner of Education to provide immediate improvements in the operation and management of the School Construction Program so as to establish an effective program to design and build schools in collaboration with local school boards and communities. Topics for consideration should include, but not be limited to:
a. The implementation of a process by which the educational priorities articulated by the New Jersey Supreme Court in its Abbott decisions and reflected in the Act shall be realized in the review and approval of Abbott District Long Range Facility Plans (“Plans”) and project proposals, to include, if necessary, revision to Facility Efficiency Standards.
b. The implementation of a process where approved Plans shall (i) reflect priorities established by local school districts with respect to the construction of schools based on health, safety, and the ability to provide an adequate working environment, and (ii) pertain to the approval of facility projects that can be reasonably accommodated within the five-year period covered by the Plans.
7. The Interagency Working Group shall provide the Governor with an initial written report of its findings and recommendations on or before March 15, 2006.
8. To assist the Interagency Working Group in fulfilling its mission, there is hereby created a Citizens Advisory Panel, which will consist of one public member appointed by the Governor upon the recommendation of the President of the Senate, one public member appointed by the Governor upon the recommendation of the Speaker of the Assembly, and three public members appointed by the Governor.
9. The Interagency Working Group shall regularly consult with the Citizens Advisory Panel to keep the Panel informed and to solicit the Panel’s input.
10. The Attorney General is hereby directed to provide such assistance to the Schools Construction Corporation as may be necessary to immediately review the adequacy of contracts entered into by the Corporation and to commence legal proceedings to recover monies disbursed due to design errors, overcharging for work completed, or other causes for which the Corporation has a right to seek recovery.
11. The Acting Commissioner of Education is hereby directed to institute such organizational changes as are required to ensure coordination of school construction activities with other Abbott initiatives and to enhance (i) the management and active participation of the Department of Education in the School Construction Program for all matters regarding educational policy, (ii) the development and application of educational facilities standards, and (iii) priority-setting by and among local school districts.
12. This Order shall take effect immediately.
GIVEN, under my hand and seal this 7th day of February,Two Thousand and Six, and of the Independence of the United States, the Two Hundred and Thirtieth.
Jon S. Corzine
Governor
Attest:
Stuart Rabner
Chief Counsel to the Governor
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Photos and audio and video clips from Governor Corzine's public events are available in the Governor's Newsroom section on the State of New Jersey web page, http://www.nj.gov/governor/news/.
