Politics & Government

State Aid To School Districts To Increase By $250 Million

Christie's budget gives back some of state aid slashed last year

Gov. Chris Christie unveiled his $29.4 billion state budget today, promising deep cuts in spending but striking a decidedly upbeat tone.

Christie to a joint session of the Legislature in Trenton.

Among the spending cuts to various state agencies, Christie’s spending plan also had two bright spots for the state’s municipalities: Christie announced there would be no cuts to aid to local governments in the 2012 plan and state aid to school districts will be increased by $250 million.

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“Today, because of the hard and necessary choices we have made, I am pleased to report we are able to provide an increase of $250 million in school aid,’’ Christie said. “This will allow every district in the state to receive increased aid.”

Mayor Ann Marie Conte could not be immediately reached for comment Tuesday. But Doug Wild, head of the Board of Education’s finance and facilities committee, was cautiously optimistic about Christie's announcement. 

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"It was certainly good news, no doubt,'' Wild said in an interview following the speech. "I think the best case scenario we had was no further reduction in aid, so that we're getting anything is positive.''

But, Wild said, while he was optimistic about the direction the governor is taking, he would wait until Thursday, when the state aid figures were released, for a full judgement.

The announcement of increased state aid is key to the Wall Township school system, which is currently considering whether it can afford to keep all four elementary schools open.

The district is expected to receive the results of a study to determine whether it is feasible to shutter West Belmar School, the township’s oldest.

, district officials have said, prompting the school system to consider closing West Belmar School to help close the district’s budget gap.

, which is currently under study by Middletown-based T & M Associates,  intent on blocking the school from closure. Results of the T&M feasibility study are due later this month, officials have said.

State Sen. Sean Kean, R-Monmouth, specifically lauded the increase in state aid, Christie's fiscal approach generally.

"Suburban schools that have become accustomed to having their state aid cut the most, will instead see the biggest increases in state aid next year under the Governor’s plan,'' Kean said in a release. "This is all proof that fiscal discipline is the best form of tax relief."

Christie said he also wants to cut the size of state government and force state workers to contribute more to their own health care premiums. The budget also calls for a $1.3 billion cut from projected Medicaid spending for the disabled and aged.

The 2012 spending plan calls for starting a budget process with a blank slate and building in what is absolutely necessary for that year. Christie called it "zero-based budgeting,'' and said the procedure is Trenton's "new normal.'' 

"For too many years, our government has operated under the belief that the baseline – the place you begin – is to continue to fund every program in the budget.  Not anymore," he said. "You need to build a realistic budget from the bottom up. You fund what you need – this year – to succeed, not every relic from two decades ago that is still on the books."

Christie spent some time comparing New Jersey's fiscal dilemma to that of other states, invoking the financial difficulties in California and in Michigan and lauding New Jersey for making the "difficult choices'' that other states are now making.

"Today, states as diverse as California and Wisconsin, Ohio and Florida, New York and New Mexico are following the New Jersey model we fought for last year," Christie said.

Christie targeted state worker benefits, saying that state workers do not pay enough for their health coverage, shifting responsibility to taxpayers who already pay far more for their own coverage.

The average state employee pays only 8 percent of their health benefits, as opposed to federal employees who pay 34 percent. Private sector employees pay significantly more, along with the taxes to support state workers' benefits, Christie said.

"The time to change this system is now," Christie said.  "We must bring this system into line with comparable public systems. I propose that by 2014, the state should pay 70 percent of the cost of employee health benefits, and the employee should pay 30 percent."


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