State Audit Questions School Construction Program’s Priorities
By Jon Whiten • Jun 15th, 2010 • Category: Blog, NewsAn audit released last week is raising new questions about the 2008 master plan for New Jersey’s multi-billion school construction program, saying that some of the school projects in the plan “may not have been most critically needed.”
The state auditor’s report, which covered the time period of July 1, 2007 to Feb. 28, 2010, finds that two rules in particular gummed up the works — one that gave priority to projects already underway, and one that made sure each eligible district had at least one project included.
“Since program needs far exceed available state funding, it is imperative that the SDA districts with the most critical needs receive priority with respect to new schools,” the audit reads. “The methodology used to formulate the 2008 Strategic Plan was not completely effective in achieving this goal resulting in some less critical projects being funded.”
The Schools Development Authority (SDA) was authorized by legislation in 2008 to issue billions of dollars in bonds to pay for dozens of school construction projects in urban districts, including five in Jersey City. Most projects haven’t yet begun, and the Christie administration’s new SDA leader is currently reviewing the 2008 plan. Meanwhile, Jersey City school officials continue to wait.
The SDA responded to the audit with a three-page statement also released last week.
“SDA management remains committed to insuring that the most critical projects across the state advance,” SDA director Marc Larkins writes. “The SDA acknowledges that school districts’ comparative needs may shift with the passage of time, and, therefore in part, the SDA is pursuing an updated review of the 2008 Capital Plan.” Earlier this month, Larkins told the SDA board that it could be another four months before the review is completed and projects could start again.
The report also briefly details the costs of the plan. While saying “the effectiveness of the SDA’s budgetary process … cannot be evaluated at this time” since “the majority of the projects have not reached the construction phase,” the audit details sunk costs of more than $26 million for eight suspended or replaced projects.
NJ Auditor’s Report on School Construction Plan
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Jon Whiten is the editor and co-publisher of the Jersey City Independent and NEW magazine.
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