New Funding Allocation Plan, Economic Stimulus Efforts Mark SDA Accomplishments in 2008

On July 9, 2008, Governor Corzine signed legislation authorizing new funds, including $2.9 billion for new schools and renovations in SDA (formerly Abbott) districts and $1 billion for the State share of projects in Regular Operating Districts (RODs).

The SDA worked in concert with the Department of Education (DOE) to equitably distribute the SDA District funding. The New Funding and Capital Allocation Plan identified 52 projects to be funded for construction and renovation, including 26 new projects and 26 others that previously had been deferred due to a funding shortfall. The SDA also used previously created reserves to begin addressing more than 100 repair projects deemed emergent for health-and-safety reasons.

Following the Governor’s direction to expedite work to stimulate the state’s flagging economy, the SDA then identified $1.4 billion in projects that could begin work in 2009.

"I am looking forward to advancing projects to support and create jobs in 2009, putting New Jerseyans to work during this economic crisis," Kolluri said. "Accelerating projects, while using the controls implemented during the Governor’s administration, will not only stimulate the economy but produce safe, efficient, quality schools that will benefit the state for generations."

The SDA opened 16 schools in September 2008, benefiting nearly 15,000 New Jersey students. Since its creation in 2007, the SDA has opened 38 schools attended by nearly 30,000 students around the state.

To ensure taxpayer dollars are spent effectively and efficiently, the SDA and DOE collaborated on a Design Review process to ensure that newly approved projects reflect up-to-date student enrollment projections and educational program needs. The SDA is using Value Engineering to ensure projects are built cost effectively without sacrificing quality.

Another key accountability initiative at the SDA has been the development of project charters. Project charters, developed by project teams, establish the budget, scope and schedule of a project. The project team concept ensures collaboration and includes any and all stakeholders who are critical to the process of meeting performance benchmarks.

The SDA continued to aggressively pursue recoveries in cases of design errors and project delays, as well as to recover environmental remediation costs. It initiated legal action in June against Gilbane Building Co., the project management firm for Neptune’s Midtown Community Elementary School, for $15 million for errors that contributed to the growth and remediation of mold.

SDA Accomplishments in 2008

• Provision of New Funding: Reforms and accountability measures at the New Jersey Schools Development Authority (SDA) helped lead to the July 9, 2008 approval of legislation authorizing $3.9 billion in new funding, including $2.9 billion for SDA (formerly Abbott) districts and $1 billion for Regular Operating Districts.
  
  
• Funding Allocation and Capital Plan for SDA Districts: The SDA collaborated with the Department of Education (DOE) to equitably distribute $2.9 billion in funding for SDA District construction and renovation projects. The plan identified 52 projects, including 26 new projects and 26 others that previously had been deferred due to a funding shortfall.
  
  
• Economic Stimulus initiative: Following the Governor’s direction to expedite work to stimulate the nation’s flagging economy, the SDA identified $1.4 billion in projects that could start work in 2009, creating additional jobs.
  
  
• School Openings: Sixteen schools opened in September 2008, benefiting nearly 15,000 New Jersey students.
  
  
• Emergent Projects: The SDA and DOE collaborated to identify and begin addressing 141 projects that present emergent needs for health-and-safety reasons.
  
  
• Cost Recovery Actions: FThe SDA continued to aggressively pursue recoveries in cases of design errors and project delays, as well as to recover environmental remediation costs. In June, it sued Gilbane Building Co., the project management firm for Neptune’s Midtown Community Elementary School, for $15 million for errors that contributed to the growth and remediation of mold.