SDA money flow

TRENTON – The New Jersey Schools Development Authority and the New Jersey Department of Education are implementing the next phase of a joint initiative to address projects in more than 100 schools requiring immediate repair in the state’s special-needs districts.
Though the DOE and SDA have approved and funded emergent projects over past years, the need existed to implement a new process to ensure that SDA (formerly Abbott) districts could evaluate all their facilities and advance potential emergent projects. Hand in hand with that effort was establishing a process to evaluate these requests and expedite funding as needed.
The SDA districts were given instruction to evaluate all their facilities for potential emergent conditions (health-and-safety type conditions requiring immediate action) and provide the information to DOE.
Site visits involving the DOE, SDA, the Department of Community Affairs and school district officials were then conducted. The site-visit teams reviewed 400 potential emergent conditions at 250 schools identified by the districts. After the teams conducted site visits, DOE developed a list of 137 emergent conditions to be addressed at 114 schools. This list was then submitted to SDA for funding and repair. Some schools will have multiple projects.
Preliminary cost estimates for the emergent projects total $57 million to $60 million. The SDA established a reserve for emergent projects and other unforeseen events in April 2007, and this reserve will be used to fund the emergent projects. This leaves the new $2.9 billion in funding for the SDA districts for longer-term, typically larger projects, and a new reserve will be created for additional emergent projects identified over time.
About 30 percent of projects deal with roof repair or replacement. Other problems to be addressed will include deteriorating façades; water infiltration; heating and cooling system issues; and plumbing, electrical, mechanical and security systems.
Projects will be fully funded by the SDA. About half will be managed by the SDA, with the remainder to be delegated to the individual school districts, based on the scope and complexity of the project.
The SDA is completing evaluation of the scope of the emergent projects. While individual project estimates are currently unavailable, they are expected to range from $100,000 to $3 million, depending on the work involved. Estimates are expected to be completed shortly. Once the scope of work is completed and approved, the SDA will move to initiate construction expeditiously.
Moving forward, the SDA districts will submit potential emergent projects to the DOE for consideration as they arise. These requests will be evaluated using the procedures developed under this initiative. Each potential emergent project will be evaluated on a case-by-case basis and include input from the DOE, SDA and the Department of Community Affairs. The SDA has set aside funds in the new Capital Plan to address future emergent conditions.
To date, the SDA has completed 81 major projects: 39 new schools; 39 extensive additions, renovations and/or rehabilitations; and three demonstration projects, which promote urban revitalization. It has completed nearly 400 health, safety and other projects.
On July 9, Governor Jon S. Corzine signed legislation authorizing an additional $3.9 billion for the program, including $2.9 billion for SDA Districts. The remaining $1 billion, including $50 million for vocational schools, will be disbursed as grants toward Regular Operating District (ROD) projects.
The day before the bill was signed, the SDA approved the 2008 New Funding Allocation and Capital Plan for SDA Districts. The plan identifies 53 projects to be funded for construction with additional funds, including 26 new school projects. Twenty-seven projects that had been deferred in April 2007 due to a funding shortfall also will proceed.
The ROD grant program will begin in upcoming months. DOE is currently working to develop an application and review process. The program will incorporate a prioritization methodology anticipated by the legislation.