Acting N.J. education commissioner hoping other savings can ward off cuts

Thursday, February 18, 2010

BY LESLIE BRODY

The Record

STAFF WRITER

Acting Education commissioner Bret Schundler told lawmakers Thursday his team hoped to keep state aid to schools steady next year despite warnings they should prepare for 15-percent cuts — just in case.

“We’re working hard to see if we can achieve state aid that’s flat but we don’t know if it’s possible,” he told the Assembly Education Committee. “We’re going to try our best to see if we can achieve economies elsewhere in the state budget” to alleviate the pain for schools.

Many educators said they were distressed Wednesday after Schundler and Governor Christie said districts should anticipate possible 15-percent cuts when they prepared budgets this spring. Asked after Thursday’s hearing whether 15-percent cuts were the worst-case scenario, Schundler said “that would be precipitous to say. I wouldn’t say yes, I wouldn’t say no.”

Schundler said the dire forecasts stemmed partly from the expected loss of stimulus funds next year. An education department spokeswoman said roughly $1 billion of federal stimulus funds enabled the state to plug budget holes and give $7.5 billion in aid to districts this year.

The acting commissioner said pension reform bills under discussion in the Legislature would, if enacted, help districts save significant sums. He noted those bills have led to speculation that some educators would retire soon to take advantage of current pension rules, and an exodus could boost such short-term costs as payouts for unused sick time. There might be legislative and administration steps to phase those payouts over time to reduce their impact, he said.

If there are aid cuts, Schundler said that some districts would likely face higher percentage cuts than others, depending on their needs.

Assemblyman Patrick Diegnan, D-Middlesex, who chairs the education committee, said after the hearing that a 15-percent aid cut “would be devastating.”

“It’s beyond the realm of realistic expectations that New Jersey schools could meet the needs of our children with a 15-percent cut,” he said.

Despite concerns over funding, the committee greeted Schundler cordially and expressed enthusiasm for his calls for high standards, more flexibility and innovation on the local level. He also reiterated his support for charter schools, though he acknowledged it would be “extra challenging” to get them resources in this harsh financial environment. He suggested charters might help districts generate revenue by renting space in district buildings and paying for district help with business services.

Diegnan predicted Schundler would be approved easily after his Senate confirmation hearings Monday.

In keeping with Schundler’s push for more choice in schooling, the committee unanimously approved a bill that would expand and make permanent a 10-year-old program that lets students leave their districts to attend public schools in 13 “choice districts” statewide, including Englewood.

The expansion enables all districts to seek the education department’s approval to become a “choice district.” Supporters said districts with empty seats due to declining enrollments would benefit, and families would benefit from more freedom to choose where they study. The bill says that if more students seek to attend school in a choice district than there are seats available, a lottery would be held to pick children.

E-mail: brody@northjersey.com