Regular Operating District Grants
In 2000, the Educational Facilities Construction and Financing Act provided an initial authorization of $2.6 billion for grants to Regular Operating Districts (RODs), including $100 million for vocational schools. Then, on July 9, 2008 legislation was signed providing an additional $1 billion in funding for RODs including $50 million for vocational schools. The Department of Education (DOE) developed an application process to allocate these funds, which are disbursed by the SDA.
In 2022, legislation (S2944) was signed which allocated $350 million in ROD Grant Funding for high-priority capital projects in school districts throughout the State.
More information on the Grant Program for School Facilities Projects in RODs is available on the DOE Web site at: www.state.nj.us/education/facilities.
School districts are eligible to receive at least 40 percent of eligible project costs. For a school facilities project to be considered for the grant funding allocated in 2022, the proposed scope of work must be 100 percent eligible for State support all fall under one of the eligible project categories. Funds may be used to address needs such as improving air quality, upgrading building systems, ADA upgrades, technology infrastructure upgrades, and repairs to the exterior building skin. Only projects that are 100 percent eligible for state support and included in one of the prioritization "levels" will be considered by DOE, although districts may request debt-service aid for other projects. Projects that require a local referendum to raise the local funding portion will not be eligible for this ROD funding.
For more information on the current funding eligibility, please see the DOE and SDA Joint Broadcast .
Following approval by the DOE, the project will be transmitted to SDA who will then offer a grant to the district. Upon proof of local share and completion of other required grant-related documents, the SDA is then able to execute a grant agreement.
Grants are paid out as districts attain specific project milestones.
For projects with a final eligible cost of more than $250,000:
|Design phase payment (representing reimbursement of payments to design and other consultants)||10%|
|35% Construction Completion||30%|
|65% Construction Completion||40%|
For projects with a final eligible cost that is less than or equal to $250,000:
|50% Construction Completion||50.5%|
At each request for payment by the district, SDA sends a Grant Inspection Team to review documents justifying disbursement. Teams also physically inspect the school.