NEWS RELEASE

CONTACT:        Frank Belluscio (fbelluscio@njsba.org)                                                     FOR IMMEDIATE RELEASE
                        Mike Yaple (myaple@njsba.org)
                        (609) 278-5202

VOTER APPROVALS FOR SCHOOL BUDGETS PLUMMET
Voter Turnout at 15.7%

TRENTON, April 19, 2006—The Executive Director of the New Jersey School Boards Association called for property-tax and school-funding reform, as voter approvals for school budgets dropped significantly from last year—to the lowest rate of approval since 1994. Voters in New Jersey approved 53.4% of the proposed school budgets on yesterday’s ballot, according to state results from the New Jersey Department of Education.

Voters in 549 of New Jersey’s school districts on Tuesday selected school board members and decided budgets totaling $10.5 billion in local spending. The state’s results show that voters approved 293 of the proposed 2006-07 school budgets. During last year’s Annual School Election, voters approved 70.7% of school districts’ base budgets, and in 2004 voters approved 69.8% of school budgets.

“Even in tough financial times, voters in the majority of districts approved school budgets and demonstrated a willingness to support education,” said Edwina M. Lee, NJSBA executive director.  “Communities are faced with stagnant state aid, which puts pressure on homeowners to pay more of the cost through property taxes. 

“In fact, 2006-07 will mark the fifth consecutive year that schools have received little or no increases in state aid,” she explained.  “During this time, enrollments have increased and costs in areas such as fuel, gas and health insurance have also skyrocketed.”

“For almost 47% of New Jersey’s communities where budgets were defeated, the hard job of determining what is critical to schools now moves to municipal governing bodies.  Lines of communication between school boards and municipalities need to be open.”

In recent times, the highest budget approval rates—88% and 81%—occurred in 2000 and 2001, respectively.  Ironically, those were also the last two years that the State of New Jersey fully funded public schools, as specified in state law.

Additional questions  Voters in 57 school districts also acted on 72 additional ballot questions, in addition to the base budgets. Some school boards placed one or more second-ballot finance questions before voters, seeking approval of expenditures above the state-imposed cap on school budgets, which is currently 4.01%. Voters approved 24 out of 72 questions, or 33%. Last year, voters approved 41.8% of the second-ballot finance questions.

In another nine school districts, voters on Tuesday acted on school bond referendums for construction projects. Voters approved six of the nine construction plans, for a total of $11 million of the $25.3 million that was proposed. The Annual School Election in April is one of five dates a year when school boards can submit construction proposals to voters; the next date is September 26. Voters approved school construction plans in Oakland, Paramus and Ridgefield in Bergen County; Elk Township in Gloucester County; Bay Head in Ocean County; and Clark Township in Union County. Referendums were rejected in Shamong Township in Burlington County; Freehold Borough in Monmouth County (both questions); and Pinelands Regional in Ocean County.

Voters in Guttenberg, Hudson County, rejected a proposal to change from an elected to an appointed school board. Allamuchy in Warren County approved a proposal changing from a seven- to a nine-member school board. Voters in Hanover Township in Morris County and Absecon in Atlantic County approved the transfer of proceeds from the sale of district-owned property to the districts’ capital reserve accounts.

Rejected budgets If voters reject either a base budget or a second-ballot finance question, the proposal is sent to the municipal governing body for review. The municipality can leave the budget intact, or make cuts.

A school board may appeal a municipality’s cuts to the school district’s base budget under certain circumstances—if the cuts undermine the district’s economic stability, or if the cuts prevent a school district from meeting state standards for a thorough education. Budget appeals are rare; last year there were three, and the previous year there were two.

However, the school board can not appeal to the state any cuts that the municipality makes to a defeated second-ballot finance question.

The New Jersey School Boards Association, a federation of district boards of education, advocates the interests of school districts, trains local school board members, and provides resources for the advancement of public education.