Philadelphia Inquirer Editorial by Joan Ponessa

Editorial for Philadelphia Inquirer
March 2006
By Joan Ponessa, Education Law Center

(This editorial was submitted to the Philadelphia Inquirer and published on April 6, 2006 in the New Jersey Section.)

More than a year ago, the Schools Construction Corporation announced it had used up $8.6 billion to renovate and build public schools, leaving hundreds of planned projects in limbo. A series of blistering reports from the Inspector General’s office followed, and the press kept up the heat. Newly elected Governor Jon Corzine got the message and one of his first actions was the appointment of a Working Group to address the problems. On March 15, 2006 the Working Group issued their first report recommending improvements in SCC operations leading toward continuation of the school construction program.

Although the report is a major step toward resolving the problems of mismanagement of the state’s school building program, the next step will be the critical piece. How will New Jersey continue to fund the program? And when? Establishing a timeframe for restarting the program is essential. There are over 100 stalled projects in Abbott districts. The state has already spent hundreds of millions of dollars on land and design work for these projects. There are also 38 non-Abbott districts that have already passed referenda based on a promise from the state to assist with funding. That fund has now run dry. Many other districts need to upgrade schools but cannot move forward without guaranteed state support.

The state has a moral and legal responsibility to renovate and build the needed schools for our students. Delay is costing New Jersey taxpayers hundreds of millions of dollars. Construction costs have been escalating about 7.5% per year by SCC’s own account. This translates into serious cost increases for the state and local districts. As an example, a $50 million project in Camden, will cost the state an additional $7 million by next year or $312,500 more for every month of delay. As the costs for non-Abbott projects escalate, the original projections approved by local citizens will not be enough to complete projects.

The long-term reforms highlighted in the Working Group’s report are significant steps toward reorganization of the SCC and must be addressed quickly to prevent further delay. However the Legislature reconstitutes the SCC, it must operate by law as a new independent authority and be accountable to the governor, legislators, and taxpayers with a professional, competent board and chief executive officer who are subject to the highest ethical standards.

Progress is already underway toward a transition - a newly organized Board of Directors has been working to strengthen operations and management, and new systems are being developed to address cost control and forecasting. However, much work remains to be done.

Hundreds of projects were undertaken piecemeal by SCC without setting aside funds to complete them. Now, projects must be prioritized for construction; realistic and accurate budgets for each project must be established; and funds must be allocated to support the project budget to completion. Construction costs must be reliably established using accepted industry guidelines, something that has not been done thus far.

The Legislature must streamline the structure for designing and constructing projects by requiring the new authority to use the most cost effective delivery method, including letting the district do the work itself; having the authority do the work; or letting the district design and the authority construct the project. Design/build and other mechanisms should be encouraged.

Of particular note in the Working Group’s report is the acknowledgement that quality school buildings are linked to the revitalization of communities and economic growth. During the first few years of the program, the municipal planning process was independent of school planning and siting. The State must use school facilities dollars to leverage investments in open space, recreation, housing and other community needs. The Legislature should enact policies that encourage community features in all projects, and "joint use" projects combining housing, retail, day care and other facilities with schools, as is done in California and other states.

In Abbott districts, full State control of the building program has left out the end-users of the schools – urban educators, parents and leaders. We need policies to ensure community involvement in every aspect of the planning and construction.

The State Department of Education must ensure that the schools built can deliver a rigorous, high quality education for decades to come. Schools must be built using quality materials and include energy-efficient systems to save on maintenance and operations.

The school construction program is a once-in-generations opportunity to rebuild our pre-K to 12 schools, and to improve the health and economic competitiveness of our cities and their metro regions. Our kids are depending on us to get the program fixed and running again.

Joan Ponessa is the Director of Research at the Education Law Center, Newark and is a member of the Governor’s Citizens Advisory Panel to the Working Group on School Construction. She resides in Moorestown.