GARDEN STATE COALITION OF SCHOOLS/GSCS

EMAILNET 8-6-04

Dr. Walter Mahler, President                                                       Lynne Strickland, Executive Director

                                             Betsy Ginsburg, Parent Network Representative/GSPN

Phone 609 394 2828   Fax 609 396 7620         Website ‘gscschools.org’              email ‘gscs@ebnet.org’

GSCS Quick Facts: 

Next Board of Trustees Meeting: Tuesday, September 14, 4 p.m., at the East Brunswick Board of Education.

GSCS Board appoints work groups to strategize on S1701 negatives for quality education and school communities in New Jersey. The work groups, composed of parents, board of education members and superintendents are meeting through out the summer and plan an aggressive campaign that will

1] educate the public about what it takes to run schools successfully and why, and

2] make it clear that the real culprits underlying steep property tax increases are state policy - such as not funding mandated programs – and state inaction, such as not providing schools with the tools to counter the real cost drivers in education spending – health benefits, insurances, utilities, and special education program funding.

3] provide supporting data that substantiates GSCS rationale, and

4] organize large scale grassroots forums in the central-north and central-south part of the state to present these issues.

Attached: Minutes from GSCS 7-8-04 Board of Trustees Meeting.

FYI  -_ Two recent examples of State Policies that have negative impact or promote misperception re: property taxes

1. State of New Jersey Recent Bond Rating Downgrade will negatively impact school construction bond costs, per S&P recent downgrade of the New Jersey Fund for Support of Free Public Schools…… See S&P article excerpts immediately below: 

“Standard & Poor's is pleased to provide ongoing service to the investment community:Atlantic County, N.J. School Program Bond RatingLowered To 'AA’ [This report{excerpt} was reproduced from Standard & Poor's Ratings Dir ect, published 8-3-04.]

“Rationale:As a result of the recent downgrade of the State of New Jersey’s GO bonds to 'AA-' from 'AA',all bonds that are secured by the New Jersey Fund for Support of Free Public Schools (fund) are being downgraded to 'AA-' from 'AA'.

The rating is based on the security associated with the fund’s requirements, which are ultimately supported by a state make-up provision. The make-up provision requires the state treasurer to annually review the funding requirements and, in the event monies are insufficient, to deposit into the school bond reserve such amounts as may be necessary to maintain the reserve account at the required levels. Due to the lowering of the state’s GO rating, the support from the state’s make-up provision is n ow of diminished credit quality. As a result, the credit quality of the bonds secured by the fund is also diminished.

[For a complete list of ratings, please click the hyperlink provided here
http://www2.standardandpoors.com/NASApp/cs/ContentServer?pagename=sp/Page/FixedIncomeRatingActionsPg]

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2. Excerpt from Star Ledger Editorial April ’04 re: the administration ‘½ millionaire’s tax’ that only is being used to send rebate checks, not provide any state aid for mandated programs.

 Per the editorial “…rebates do nothing to lower property taxes. Rebates do nothing to attack the underlying causes of those high quarterly bills. Instead, rebates provide an illusion that Trenton is doing something, that Trenton is concerned. Even after citing all these programs, the governor acknowledged they were not enough. "It is only the beginning and I will be back," he said. "I refuse to allow another year to go by without asking this Legislature to do more."

Exactly what, he didn't explain and nobody on his staff seems to know. When questioned, they point to all the state aid programs and efforts to coerce mayors and school boards to be a bit more circumspect in spending. Such moves are necessary, but will never supply significant property tax relief.

Right now, the property tax accounts for about 46 percent of New Jersey's state and local tax revenue. Nationally, property tax provides about a third.”