As
expenses mount, school-building fund
shrinks
Money "committed to projects," such as P'burg
schools, said to be available.
Monday, October 04, 2004 • By TERRENCE DOPP •
The Express-Times
TRENTON -- Four years into an $8.6 billion
state-financed school construction spree, the money is
running thin, the agency overseeing the building and
renovation projects reports.
But the hundreds of school construction projects
statewide -- including those in Phillipsburg -- that have
not been finished appeared safe as of last week.
Despite the dwindling accounts, officials with the
Schools Construction Corp. said the agency would be able to
cover all of its outstanding funding promises through
2006.
"Money committed to projects is fine," said Kevin
McElroy, a spokesman for the Schools Construction Corp.
"With the funding available" the money could run dry "by
2006. The money we have may not meet the total commitment.
Obviously at that point we will have to address that."
He cited the cost of land, preparation work and
relocation payments as expenses that have come in well above
what was anticipated, particularly in urban and heavily
developed areas.
The Legislature created the Schools Construction Corp.
to streamline the implementation of the Schools Facilities
and Construction Act.
Under an order of the state Supreme Court, in 2000 the
state Legislature undertook a massive $6 billion building
rush in Phillipsburg and the other 30 poorest school systems
statewide, known as Abbott districts.
In order to entice rural and suburban lawmakers to vote
for the massive bonding necessary to raise the money, $2.6
billion was tacked on for middle and upper class schools.
Abbott districts received full funding for school
construction and the plan allowed the remaining 580-plus
districts to get up to 40 percent of costs.
According to state figures, about $600 million is left
of the money earmarked for middle class and wealthier
districts. Another $2.8 billion is left for Abbott
districts.
In Hunterdon and Warren counties, 90 projects for
non-Abbott school districts with a total value of $108
million are scheduled to see state funding.
Phillipsburg, the only Abbott school district in either
Warren or Hunterdon counties, is slated to receive about
$111 million to build two new schools and renovate existing
buildings. An $18.7 million Early Childhood Center is
currently being built on 11 acres off Center Street. A $71
million high school slated to open in September 2007 is
planned for 126 acres off Belvidere Road in Lopatcong
Township.
Frank Belluscio, spokesman for the New Jersey School
Boards Association, said the construction act has been a
boon to local school boards.
The school boards association estimates public
enrollment will continue to grow throughout the decade and
has called on lawmakers to consider putting more money into
the construction kitty.
"Are we concerned? Yes, it's gone down significantly.
There are still needs out there and those needs go beyond
the $600 million," Belluscio said.
But replenishing the fund could prove tough.
On Tuesday, the state was forced to accept a downgraded
credit rating when it sold the first of $2 billion in bonds
backed by future proceeds from the lawsuits against tobacco
companies. The lower rating assigned to the 30-year bonds
means the state will be forced to repay more.
New Jersey's top elected Republican pledged to fight
attempts to borrow any money for school construction.
"I don't favor additional bonding for school
construction without voter approval," said Senate Minority
Leader Leonard Lance, R-Hunterdon/Warren. "The original $8.5
billion in bonding was issued without voter approval. Our
credit rating is just not high."
According to published reports, the construction effort
assisted in funding 1,127 projects in suburban and rural
districts; built or overhauled 25 urban schools, and used
$650 million to make needed repairs to Abbott schools.
Terrence Dopp is Trenton correspondent for The
Express-Times. He can be reached at 609-292-5154 or by
e-mail at tdopp@sjnewsco.com.
Copyright 2004 The
Express-Times. Used with permission.
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