School districts rush for construction aid

Suburban and rural districts across New Jersey are racing to claim the last dollars available from a $2.5 billion school-building fund, which for five years has helped lower tax increases and get bond issues passed.

But they're in for bad news.

An official at the Schools Construction Corp. said yesterday that just $60 million is left in the fund, clearly not enough for all the projects voters are scheduled to consider on Sept. 27.

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Dominick DeMarco, an SCC spokesman, initially said the money would be given out on a first-come, first-served basis. He later said the agency was drafting a policy in consultation with the state attorney general and Department of Education to determine who wins grants.

"The amount on the ballot is more money than we have," DeMarco said.

That is an understatement, as districts are asking voters to approve about $906 million in projects, which would be a record according to data collected by the New Jersey School Boards Association. Districts are eligible for grants of up to 40 percent of project costs deemed eligible by state Department of Education.

At least two districts -- Caldwell/West Caldwell and Eatontown -- withdrew referendums in recent weeks based on uncertainty over state grants.

"We're going to wait until December and see if the Legislature replenishes the fund," said Eatontown Superintendent Nina Hoover.

But others interviewed said they are forging ahead because the construction work is necessary. Those officials conceded that the uncertainty makes selling the initiatives to voters more difficult.

"We're optimistic and hopeful the community will embrace these needs," said Nutley Superintendent Joseph Zarra, whose district plans to refurbish all six elementary schools, some of which are 100 years old. "If the money runs out, then we will look for alternatives."