LEGISLATURE CLEARS STANLEY/CARABALLO/POU/VAN DREW BILL
OVERHAULING SCHOOL CONSTRUCTION AGENCY
Legislation Would Dismantle Current Schools Construction Corporation,
Enact Reforms to Protect Against Wasteful Spending

(TRENTON) - Legislation to dismantle the troubled Schools Construction Corporation (SCC) and enact a series of structural reforms to restore confidence in the state's efforts to provide New Jersey students with modern school buildings was passed today by the Assembly.

The reform legislation (S-2796/A-4336) - sponsored by Assembly members Craig Stanley (D-Essex), Wilfredo Caraballo (D-Essex), Nellie Pou (D-Passaic), and Jeff Van Drew (D-Cape May/Atlantic/Cumberland) - seeks to implement recommendations formed by the Governor's Interagency Working Group on School Construction.

"After spending seven years and more than $8 billion to upgrade New Jersey's aging schools, the simple fact is that the SCC fell far short of what was expected," said Stanley.  "Residents must feel confident that promised schools are going to be built.  This new agency will move us in that direction."

The measure's most sweeping reform would be the dissolution of the SCC and its replacement with an entirely new agency - the New Jersey Schools Development Authority (NJSDA) - which would be considered in, but not of, the state Treasury Department.  All SCC functions, powers, duties, and employees would be transferred to the new NJSDA.

The New Jersey Economic Development Authority (EDA) would continue to provide the financing for school-facility projects.

"The SCC's past management squandered billions of dollars and left a patchwork of partially completed projects strewn about the state," said Caraballo.  "It's time to turn over the job of building schools to an accountable, transparent entity.  No one should be sad to see the SCC go."

Other key reforms included in the measure would do the following:

• Direct the Commissioner  of Education to establish an educational priority ranking and a process for sequencing construction of new facilities in the Abbott districts based critical need;
• Reform the land acquisition procedures to provide that if it is necessary to acquire land for an Abbott district school project, the board of education and the municipality must jointly submit a complete inventory of all district- and municipal-owned land located in the municipality;
• Require that if land acquired for a  school project is no longer needed, any proceeds from its sale would be dedicated to cover the cost of school facilities projects included in that district's long-range facilities plan;
• Allow the NJSDA to undertake preconstruction activities - such as demolition, design work, or remediation - prior to final approval of an Abbott district school projects, but only in accordance with the project's educational priority ranking and strategic plan;
• Create a system to measuring whether local school officials are capable of managing a construction project on their own, and if not, develop training programs to provide needed technical assistance;

"The SCC was created with great fanfare and promise, but it will go down in history as one of the state's deepest money pits," said Pou.  "School districts and students need an agency they can rely on to deliver results.  These reforms are necessary to meeting that challenge."

The legislation would not dedicate any new funding to the school construction program.  The lawmakers said that the paramount responsibility is to enhance accountability, transparency, and project prioritization and control.

"Before the state spends another dime on school construction, we need an accountability system to protect taxpayer dollars," said Van Drew.  "The state needs a structure in place to build better schools while preventing further scandals of waste, fraud, and abuse."

Assemblymen Joseph Vas (D-Middlesex) and Gary Schaer (D-Passaic) also joined the bill as prime sponsors.

The Assembly passed the measure 47-30 with abstentions. The bill now heads to the Senate, where a vote was scheduled so it could go to the Governor's desk today for his signature, veto, or conditional veto.

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