newjerseynewsroom.com

Will propose an Aug. 1 deadline for changes to go into effect

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

THIRD UPDATE

In an effort to reduce the cost of pubic school education, Gov. Chris Christie is preparing to ask the Democratic-controlled Legislature to quickly approve a package of bills before it recesses on June 30, including a proposal that would make New Jersey‘s 178,858 teachers pick up part of the cost of their health benefits.

State Education Commissioner Bret Schundler revealed the initial details of the package Tuesday in an appearance before the Senate Budget Committee in Trenton. He said the governor will propose that the changes would become effective Aug. 1, prior to the start of the 2010-11 school year.

"The governor will propose health benefits' cost sharing beyond 1.5 percent,'' Schundler said. "He will propose a percentage on premiums above a certain threshold. He will also propose that the changes go into effect on August 1. For somebody (senior and higher paid teachers) who does not want to contribute to health care costs, they can retire before August 1 and get their full benefits. This way, a school district will have the opportunity to hire new employees who are less expensive. It will help immediately in fiscal year 11 (2010-11).''

As Democrats criticize Christie's plan to cut $819 million in state aid to schools, an average aid reduction of 7.4 percent, the governor has been attacking unionized teachers for not immediately agreeing to accept wage freezes to help school districts cover the lost aid. So far, teachers in 11 districts and superintendents in 100 districts have agreed to wage freezes. Democratic legislative leaders have not joined in the attack on the politically-powerful New Jersey Education Association.

The proposal is expected to include the constitutional amendment Christie wants voters to approve on the Nov. 2 ballot that would place a 2.5 percent annual cap on labor costs and property tax hikes.

Schundler also said Christie will call for collective bargaining reform, arguing the current arbitration system is unfair to districts and taxpayers and leads to approval of annual pay hikes of 4.5 percent for teachers. "Nobody in the private sector is getting that kind of money,'' Schundler said.

Christie is also expected to propose giving county school superintendents the power to disapprove a proposed contract settlement if it would increase salaries and benefits beyond a constitutional cap, fail to include cost sharing for health benefits, fail to mandate that teachers spend at least five hours daily with students, fail to specify a minimum number of work days for staff or bar the contracting of auxillary services. And the governor will propose that county superintendents implement the sharing of school business functions among districts in an effort to cut the cost of district management and contracts.

Schundler said teacher contracts are in negotiation in 267, or 40 percent, of school districts and if the Legislature approves Christie's proposals, the changes would help districts save money in the 2010-11 school year.

"Governor Christie will be advancing proposals that will work to moderate the pace at which school district salary and benefit costs are rising throughout New Jersey,'' Schundler said. "In addition, he will be proposing a constitutional cap on the pace at which spending for direct state services can rise, thereby dramatically increasing the amount of state funding that will be kept available for the education of our children in the years ahead.''

Derek Roseman, a spokesman for the Senate Democrats, said Democratic leaders want to see the final proposals before commenting.

Schundler said that while Christie cut $418 million for "non-school purposes,'' he increased aid for classrooms by $238 million. "That's a 2.4 percent increase in state funding for school districts amidst the greatest economic downturn since the Great Depression.‘'

Commenting on Schundler's appearance before the panel, NJEA President Barbara Keshishian said, "Despite today's Monmouth University poll showing the public does not blame teachers for the governor's impending school budget cuts, Commissioner Schundler's testimony ... was simply more of the same blame game."

She said, "While it may be technically correct to say that Governot Christie is proposing a $238 million increase in state education spending, Commissioner Schundler conveniently omits the fact that this ‘increase' is only the difference between last year's one-time federal stimulus money and the $819 million that the governor cut from state school aid. But the fact is that under Governor Christie, public school funding has been cut by $475 million this year, and will be cut by another $819 million next year.

"When Commissioner Schundler claims that school district salaries are rising three times faster than the rate of inflation, that's an outright falsehood," Keshishian said. "Over the past five years, the average rate of inflation was 2.76 percent. Over the past five years, the average teacher salary increased by 2.86 percent. Commissioner Schundler is misleading the public on this issue.'' She added, "It's time for the Christie administration to stop misleading the public, and trying to place all the blame for the state's fiscal woes on the public schools. That's irresponsible, and NJEA and its members will set the record straight every time this administration tries to bend it."

Schundler also said that the average local school property tax can be expected to rise 3 percent to 4 percent but maintained, "That's a much smaller year-to year increase than has been typical in the past 10 years, but remember: a lot of homeowners have lost their jobs, and even many of those who haven't are still suffering from reduced incomes.'‘

Neither Christie's nor the NJEA had any immediate comment on Schundler's comments about the governor's developing legislation.