ELC has responded to a proposed amendment (N.J.S.A. 6A:26-3.7(j)) to DOE’s educational facilities regulations to support a mechanism to remove barriers to full state school construction funding for non-Abbott districts with critical facilities needs, especially those districts in DFG A or B. The proposed amendment full state funding to those districts that can demonstrate fiscal hardship by either having a T & E budget equalized tax rate of at least 130 percent of the State average or having an equalized municipal tax rate above the State average.

While DOE is acknowledging that some non-Abbott districts lack the local taxing capacity to raise the local share for facilities projects, the DOE proposal:

1. fails to offer any justification for the criteria used to identify "low–wealth" districts that would be eligible for full state funding; and
2. fails to explain how these districts will have access to any state funding since the current allocation is almost exhausted.

ELC is calling on the Commissioner to provide the Legislature with a full review of all district needs, and an analysis of the barriers to accessing state grant funding. As the Legislature prepares to review the school construction program, this review and analysis will provide a basis for authorizing additional funding and changing the current grant program allocations to ensure that needy districts can readily access those funds.

Preliminary data shows that most of the non-Abbott grant funding went to mid and higher wealth districts that had the capacity to raise the local share, leaving inner suburban, rural or other poorer districts unable to access funding beyond basic health and safety needs. The second round of long range planning that each district must complete by October 2005 will allow the DOE to develop a statewide "facility needs" inventory. This should provide the DOE with a basis to set priorities for projects based on need in order to ensure that the new facilities funding is equitably distributed.

Prepared: May 19, 2005