Governor Jon S. Corzine is expected to sign legislation shortly that would authorize an additional $3.9 billion for the school construction program. The legislation calls for $2.9 billion for projects in SDA (formerly Abbott) Districts. The remaining $1 billion, including $50 million for vocational schools, would be for grants toward Regular Operating District projects.

SDA District projects are 100 percent funded by the state and are managed by the SDA, although regulations are being developed to delegate some projects for local management. RODs, which manage their own projects, will be able to apply for at least 40 percent state funding for eligible costs.

The New Funding Allocation and Capital Plan, developed by the SDA in consultation with the New Jersey Department of Education, was presented today by SDA CEO Scott Weiner. Education Commissioner Lucille Davy described the process used in identifying and prioritizing the new projects, a process that contrasts starkly with the past practice of projects being approved and worked on without prioritization.

Weiner said: “While much needs to be done in what truly will be a multigenerational program, this plan is an important step forward in addressing the critical facilities needs faced by students throughout New Jersey’s special-needs districts. I appreciate the hard work and collaboration of DOE in developing a priority plan that identifies the schools most desperately needing replacement or repair. We will now work to develop a logical plan for sequencing these 53 projects and move expeditiously to get them under way.”

"Safe, secure facilities are essential if we are to provide students with the kind of education they will need to be successful in the 21st century," said Education Commissioner Lucille E. Davy. "This is part of the Governor's commitment to ensuring that every child has access to a quality education.

"In districts throughout New Jersey, there is a huge demand for capital maintenance, renovation and expansion and new buildings, and we have a responsibility to support these projects in order to provide taxpayer relief,” the Commissioner said. “While the needs far outstrip the resources currently available, DOE, working with the SDA, is confident that the process of selecting these 26 new projects was fair and equitable and had at its core educational priorities."

A presentation on the New Funding Allocation and Capital Plan, including the list of 53 schools, is available at www.njsda.gov.

The process of identifying the highest priority schools began after DOE approved Long Range Facilities Plans (LRFPs) for the 31 SDA Districts. The districts listed a total of 351 potential projects.

In June 2007, DOE began a process to identify the most critically needed projects from the LRFPs. In collaboration with the districts and DOE, a list of 112 projects was developed earlier this year. In April 2008, DOE narrowed that list further to the highest priority needs, applying detailed criteria based upon educational adequacy.

The SDA, in consultation with DOE, developed the New Funding Allocation and Capital Plan to apply newly available funding and to achieve programmatic policies and goals. The goals of the plan were to:
• Complete projects that were deferred in April 2007
• Provide full funding for newly identified projects
• Maintain adequate reserves for planning, emergent projects and unforeseen events.
• Address other factors, such as equitably distributing limited resources, giving recognition to the state’s prior investment in certain projects, and addressing district-specific needs

The April 2007 deferral of 27 projects was due to a structural deficit in the July 2005 Capital Plan developed by the SDA’s predecessor, the Schools Construction Corporation (SCC). The deficit was caused by to a lack of accurate cost projections at the time the plan was adopted, and inflation. The SDA’s Project Charter Initiative, which requires Board approval of a project’s budget, scope and schedule before dollars are spent, was designed to provide the accountability that was lacking in the past and ensure all projects on the New Funding Allocation and Capital Plan are completed.

The new plan provides $1.7 billion for the 26 new projects and $970 million to complete the 27 deferred projects. It provides $305 million for reserves.

The ROD grant program will begin in upcoming months. DOE is currently working to develop an application and review process. The program will incorporate a prioritization methodology anticipated by the legislation.

The SDA has completed 576 projects in the SDA Districts. The total includes 81 major projects – 39 new schools; 39 extensive additions, renovations and/or rehabilitations; and three demonstration projects, which promote urban revitalization. The total also includes nearly 500 other projects.

In RODs, the SDA has completed 14 major projects, including four new schools, seven extensive additions/renovations and three other rehabilitation projects. The SDA manages previously approved projects in districts receiving 55 percent or more in state aid, and in those electing state management. Such future projects will be managed by local school districts.

The SDA also has executed 1,430 grants impacting 472 districts in RODs, with more than 80 percent of New Jersey districts benefiting.