New Jersey Education Association

New Jersey School Boards Association

New Jersey Principals and Supervisors Association

Garden State Coalition of Schools

New Jersey Association of School Business Officials

New Jersey Association of School Administrators

The Education Law Center

A-4577 & A-4599

The above listed education organizations support A-4577 sponsored by Assemblyman Johnson and A-4599 sponsored by Assemblyman Stanley.  These bills would each provide some measure of relief from the restrictive caps imposed by P.L. 2004, c. 73, (formerly known as S-1701).

Specifically, these bills each would provide a budget cap adjustment for rapidly rising energy and utility costs.  The education community feels strongly that this adjustment is appropriate and necessary given that gasoline has risen 109% since last September and the Board of Public Utilities currently has applications pending to raise natural gas rates anywhere from 18% to 42% above last winter’s rates.

A-4599 goes further by increasing the percentage of allowable school district surplus.  Prior to the enactment of P.L. 2004, c.73 the Department of Education held that districts should not permit their surplus funds to dip below 3%. Maintaining a maximum surplus at 2% puts school budgets, thus programs and class size, at risk when unpredictable circumstances occur such as disabled students moving into a district during the year, or emergency capital needs. While the A-4599 would still cap allowable surplus at a level the education community still considers dangerously low, we recognize it as a positive step toward allowing districts to produce more responsible budgets for their communities. 

We, therefore, support this measure and greatly appreciate the legislature’s willingness to consider providing some flexibility in allowable surplus during these trying economic times.

On behalf of the above listed organizations we urge your support of these important bills.  We appreciate your prompt action before the next school budget cycle gets underway.