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Christie approves release of aid after shaking up Schools Development Authority

Gov. Chris Christie Tuesday announced what he described as a complete revamping of the state Schools Development Authority construction program and the first-ever statewide prioritization of the agency's school construction projects in an effort to bring accountability to the spending of millions of taxpayer dollars annually for school improvements and expansion.

The review resulted in the recommendation to help finance these projects in 2011 at a state investment of almost $584 million:

  • Bridgeton – Cherry Street Elementary School;
  • Elizabeth – Academic Magnet High School;
  • Long Branch – Catrambone Elementary School;
  • Jersey City – PS 20 Elementary School;
  • Jersey City – Elementary School 3;
  • New Brunswick – A. Chester Redshaw Elementary School;
  • Newark – Oliver Street Elementary School;
  • Paterson – Marshall & Hazel Elementary School;
  • Paterson – PS Number 16 Elementary School;
  • West New York – Harry L. Bain Elementary School.

For the first time when selecting a project to support, the governor said, the SDA considered total project cost, cost per student and efficiency of construction. Using the uniform process and selection criteria, the authority will identify the next group of school construction projects for 2012.

Christie's recommendations will be presented to the SDA Board of Directors in the coming weeks for their review.

The governor said the new approach is the result of a review conducted over a six-month period by an internal working group consisting of SDA and Department of Education officials and reflects a wholesale strategy shift from the SDA's earlier 2008 construction plan.

Christie said the changes reflect a commitment to the proper use of public funds, an objective prioritization of statewide educational needs and the advancement of sound design and construction principles. He said that for the first time, the changes will allow the SDA to responsibly advance each project in the most efficient and cost-conscious manner.

Since taking office the governor has held back the SDA from allocating money for the expansion or building of schools in poor districts because in the past, the authority wasted millions of dollars.

"We all know that the prior program was associated with the absolute worst kind of government waste, mismanagement and lack of supervision, where much was promised, too much was spent, but too little was returned," Christie said. "I could not responsibly or in good conscience let that history repeat itself at this agency. We will move forward smartly and deliberatively to deliver value to the school districts and to our taxpayers."

"The completion of the Capital Plan Review marks a new day for school construction in New Jersey," SDA CEO Marc Larkins said. "With a statewide prioritization in place, new project delivery processes planned, and a full understanding of the SDA's capacity, the authority is poised to move forward with an efficient, responsible school construction program that will address the needs of our students and communities statewide."

Here are highlights of the 2011 plan as described by Christie's office:

  • A carefully considered, objectively prioritized capital program rather than merely a list of 52 projects;
  • An annual selection of projects to be undertaken – starting with 10 in 2011;
  • A strategic approach to standardization in school projects, allowing for design replication on multiple projects, resulting in estimated savings of nearly $4 million per project over less efficient prior project delivery methods;
  • Allocation of $100 million for the advancement of additional emergent projects in the poor districts;
  • A statewide prioritization plan to be reviewed annually, providing a framework for project advancement so that only those projects most needed and most efficient will proceed into construction.

The new approach represents a shift away from what the governor called design excess, costly change orders and mismanagement, and will allow the SDA to advance each project in the most efficient manner. The review evaluated all projects using the same factors, where prior reviews showed a bias in favor of certain types of projects, including, for example, early childhood centers.

Christie directed a comprehensive review of the SDA early last year. In addition, the State Auditor heavily criticized the SDA's 2008 Capital Plan in June. Among the criticisms raised by the auditor was the requirement that every SDA district receive a project and that certain projects included in the 2008 Plan had never been properly evaluated.

Christie vetoed a change order proposed by the SDA in January of 2010 and Larkins was named CEO in March. The SDA has also reduced staffing by almost 20 percent and made other operational changes that have reduced the authority's budget by more than $4 million per year.

When a reporter asked Christie what would become of the 40 proposed school construction projects that were in line for aid when he took office, the governor replied, "I’m not going to become a captive of the inefficiency and corruption of the past. Just not. So, what happens to those projects? If those projects wind up meeting our objective prioritization based upon need and efficiency to finish, they’ll get done. If they don’t, they won’t."

The SDA also makes grants available to the 574 so-called regular operating districts throughout the state for projects approved by the DOE. These grants fund at least 40 percent of eligible costs, with the remaining share coming from local communities, contingent on budget or voter approval. The SDA portfolio contains more than 1,000 active grants, 388 of which have been advanced since May, and total more than $126 million.

– TOM HESTER SR., NEWJERSEYNEWSROOM.COM

Last Updated ( Wednesday, 16 February 2011 00:14 )  

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