Property Taxes, School Funding issues | ||||||||||||
| ||||||||||||
GARDEN STATE COALITION OF SCHOOLS
GSCS EMAILNET 4-27-07
GSCS QUICK FACTS: Next Board of Trustees meeting May 2, 3:30 pm, at the East Brunswick Board of Education –Please RSVP gscs2000@gmail.com ;
School Funding Work Group, Tuesday May 8 Noon, Room 103, East Brunswick – will be joined by Ernie Reock;
GSCS participated in Commissioner of Education's 'Stakeholders' information meeting Wednesday, 4-25-07, where Augenblick and Associates presented on the current costing-out study. It was made clear by Commissioner Davy that the study will be used as the springboard for developing a new school funding formula, purportedly to be ready after November elections this fall, and to be passed by the legislature in its subsequent lame duck session. While the schedule is ambitious, GSCS has concerns that the process as envisioned may impede needed progress to get a funding formula up and going in an expeditious fashion.
!Based on new property tax legislation, Moody's 4/07 report remains "Negative" on Outlook for N.J. Schools/see below.
FYI - Education items re: Legislative Schedule Monday, April 30
9:30am Joint Budget Oversight Committee (JBOC) - For approval: 1) NJ Environment Infrastructure Trust, refunding bonds; 2) Transfers: Dept Human & Senior Services Hospital Asst. Grants; DEP Black Fly Spray; DOE Abbott program reforms and others; 3) Other.
Assembly
10:00am Assembly Education Committee - The committee will hear testimony from invited guests on the implementation and impact of the "No Child Left Behind Act of 2001."
FROM THE HOMEPAGE, for more....go to www.gscschools.org
4-25-07 Star Ledger 'Poor towns said no to school tab'
'...With state school aid virtually frozen from 2001 through 2006, the burden of paying for public schools has fallen squarely on homeowners. And with local taxes rising about 7 percent every year, the burden in many communities became intolerable.....' "By failing to deliver on the promise for another school year, we have locked inequities in place," Sen. Barbara Buono (D-Middlesex) said during a hearing on Education Commissioner Lucille Davy's budget the day before school elections last week. "Why should we believe this year will be any different?"
More ...
APRIL '07 MOODY's OUTLOOK ON SCHOOLS -NEGATIVE
Moody's Maintains Negative Outlook on New Jersey School Districts Property Tax Reform Is Expected to Impose Additional Financial Pressure on School Districts.......
Summary Opinion: Moody's believes that New Jersey school districts may experience further fiscal pressure due to a combination of fund balance restrictions and property tax limitations, despite the granting of certain exceptions. The New Jersey Tax Reform legislation signed into law by Governor Jon S. Corzine on April 3, 2007 imposes a 4% cap on property tax levy increases for all municipal governments, including county, local governments, fire districts and school districts. The impact of the tax levy limitation on school districts is especially onerous given an existing two percent cap on the undesignated portion of districts' fund balances, which has narrowed financial flexibility for a large number of districts.
An enhanced rating of Aa2 with stable outlook is currently available to all New Jersey school districts based on the school bond reserve fund established by Chapter 72 and is not expected to be affected by the Property Tax Reform legislation. The Aa2 rating reflects the program's highly liquid reserve (balance of $103.3 million at fiscal year-end 2006) for $8.1 billion in school-related debt currently outstanding. The reserve has not been tapped since its inception.
Moody's currently has ratings outstanding on 280 of the 616 school districts throughout the state. ……….. Conclusion: Moody's believes that the four percent cap on property tax increases for school districts limits the ability to raise revenues to meet increasing expenditures and, together with existing fund balance restrictions, will present challenges to school districts to balance their budgets going forward. Moody's will continue to monitor the impact of the of the property tax levy limitation to determine its full impact on the New Jersey school district sector.
More ...
GSCS MEMBERS TAKE NOTE ! Sign Up for -
To RSVP for this event, please call 609-777-0994 or email Event.RSVP@gov.state.nj.us
2008 N.J. STATE BUDGET FORUM
ON BEHALF OF GOVERNOR JON S. CORZINE
State Treasurer Bradley Abelow and
the Department of Community Affairs
Commissioner Susan Bass Levin
Wednesday
May 2, 2007
7-8PM
Borough Hall
90 Monmouth Street
Red Bank, NJ 0770
MODERATOR: MAYOR PASQUALE MENNA OF RED BANK
**Also Attending**
Commissioner Lucille Davy, NJ Department of Education
Virginia S. Bauer, CEO & Secretary of Commerce
Ronald Chen, Public Advocate
Please join Treasurer Abelow and Commissioner Bass Levin for a public discussion on the FY08 Budget. The Question and Answer format will allow you to directly address the featured Cabinet members with your specific questions or concerns.
***No large bags, back packs or signs will be permitted ***
Sign Language Interpreters and Assistive Listening Devices will be provided. Please advise if you have