School Construction Program Status

Education Law Center’s latest Abbott School Construction Program status reports (projects completed, projects under construction, and 59 Abbott Projects in NJSDA's Capital Plan and the list of Stalled Projects) analyze data from the NJ Schools Development Authority, the Department of Education and the Abbott districts.

ELC has added a list of 91 stalled projects with expenditures to date to highlight the amount of funds already spent on land and design. According to ELC's Executive Director, David Sciarra, "Leaving these projects stranded makes no economic sense. Millions have already been sunk into the projects and, with construction costs rising, the price-tag goes up every day. School construction also generates substantial wage, sales, and other revenue for the treasury. And, most importantly, we must make sure every child attends a school that is safe, not overcrowded, and sufficient to deliver the high quality education he or she deserves."

Key information from ELC concerning school facilities projects:

  • 71 projects have been completed. (see definition of a project below)
  • 28 projects are under construction.
  • NJSDA announced in July 2005 that 59 Abbott "projects" would be completed with the remaining funds available. These projects were considered part of the "capital plan." Due to lack of funds, NJSDA has revised the list. Only 32 projects will proceed to completion. Bid documents will be completed for the remaining 27, but construction will not be initiated until additional funding is available.
  • The 27 projects on hold in NJSDA's capital plan will proceed through design to construction documents (ready to be bid for construction). Expenditures cited include only funds paid out to date primarily for design, land acquisition, relocation and remediation. In some cases, the expenditures are very significant, for example, $40.3 million for the Beth Israel site in Passaic. Costs for health and safety work completed to maintain current buildings until major work proceeds are not included in the expenditure totals.
  • In addition to the projects on hold from the list of 59, approximately 91 other projects are stalled due to lack of funds - architectural contracts are on hold - in April 2005 by order of Inspector General Mary Jane Cooper. These projects are frequently cited as the list of 97. Some of the projects on the original list were incorrect or, in the interim, have been changed. ELC has reviewed the list, made appropriate adjustments, and added the estimate of expenditures on the projects to date. Expenditures for these projects include $12.6 million for the Gloucester City Middle School, $10.8 million for Eastside high School in Newark, $19 million for University High School in Newark, and $16.3 million for the Phillipsburg High School.
  • A more accurate assessment of projects that will proceed from the list of 91 stalled projects will be available after approval of the 2005 Long Range Facilities Plans. The DOE review of the 2005 LRFPs has not been completed as of January 2008 - 23 Abbott districts have received LRFP approval letters. Two districts have draft approval letters.. The remaining six districts need to correct some problems in their plans before approval is possible.

These reports are offered with some reservations because of NJSDA's definition of a project. Until recently, obtaining comprehensive, accurate information from the NJSDA and DOE on project development was very difficult. Major discrepancies continue to exist between reports issued by these two agencies and ELC's district surveys. In addition, until recently, NJSDA did not post this information on their website. NJSDA now has their list of completed projects and projects under construction available on the main page of their website.

The definition of a "school facility project" remains the major disagreement. The Educational Facilities Construction and Financing Act (EFCFA) does not distinguish between the type and scope of projects. ELC and DOE consider a school facility project to be all work associated with the design and construction of either an entirely new building, an addition to a school building, a conversion of a building not previously used as a school, or a substantial renovation of an existing school facility resulting in the creation of instructional spaces. NJSDA customarily uses the term "project" to describe discrete scopes of work as defined by the terms of a contract. The result is that NJSDA designated projects may be a component or phase of a larger project, a facility serving multiple schools, or simply a repair to an existing facility (health and safety project).


 
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