Member Login

Commissioner Schundler Provides State Board Information on FY2011 Proposed Budget March 17

Moratorium of NJQSAC Also Proposed

March 17, 2010

Acting Commissioner Bret Schundler provided the New Jersey State Board of Education details on the Governor’s proposed FY2011 budget during the March 17 State Board Meeting. Schundler indicated that state aid figures for districts will be released later today. In addition, Schundler proposed a one (1) year moratorium on NJQSAC for districts who are considered high performing.

The State Board also approved the 2010 Religious Calendar but declined to approve a delay in implementation of the financial literacy regulations. 

Commissioner’s Report

The Budget

The Commissioner focused almost exclusively on the elements of the Governor’s “reform proposal” which embrace “tools” for districts to help control costs. Schundler stated that higher contract settlements, health benefit costs and retirement benefit packages were stifling what could be accomplished in local districts. Specifically, the Governor’s plan would seek to modify existing law associated with collective bargaining, as well as those provisions which establish employee pension and benefits.

The “tools” also include changes in employee arbitration to include a return of “last best offer” as well as a recognition of spending caps and an award’s impact on property taxes during the arbitration process. Schundler stated that during the 2008/9 time frame inflation was at zero (0) percent but simultaneously employees received settlements of around 4.5 percent. The Governor’s proposal would connect the consumer price index rate to increments for collective bargaining units. This, the administration argues, would slow the pace of payroll costs over time.

Stating that a 26 percent increase in health benefit premiums for 2011 was unacceptable, the Commissioner indicated that management and labor had to have a “unified interest” in finding lower costs. This, he indicated, would occur by adding a consumer price index (CPI) escalator to the annual salary percentage employees may pay for health benefits if current legislation (A-2460 (Oliver, DeCroce) / S-3 (Doherty, Whelan)) is enacted. That legislation passed in the Senate, and proposed in the Assembly, would require employees to pay 1.5 percent of their salary toward health benefits costs (NJ Assembly To Hear Legislation Impacting Your Pension & Benefits March 18). Schundler argued that there is a decreased incentive today to find high quality, but inexpensive, plans today on the part of labor. He indicated that the Governor believes that there will be immediate savings with labor and management shared interest in finding the best policy for best price. 

In the area of pension reform, Schundler argued that the State not paying into the pension fund was not a fundamental function of the plan’s unfunded liability. Rather, he argued that even if the state had made all payments within the last ten (10) years the fund would be merely 74, rather than 64, percent funded and the plan would still be moving toward bankruptcy. Schundler stated that while non-payment exacerbates the problem, the State can’t afford the current program. Schundler argued the current bi-partisan package, although more humble pension benefits, would be more affordable for districts and the State, thereby increasing the solvency of the current pension fund. This would ensure that although each pensioner would get less, they would still get something. Schundler claimed that the State cannot makeup the losses in the current fund and that the fund will go bankrupt without fundamental changes.

Schundler also addressed the Governor’s proposal for institution of Proposition 2 1/2 , a constitutional amendment which would bar state and local government, including school districts, from increasing budgets by more than 2.5 percent each year. Unlike the current 4 percent limit, the new "hard" 2.5 percent cap on municipal, school and county property tax levies would be all-encompassing, without exceptions for such essentials as rising health insurance or debt payments. The tax could be raised higher only if local voters grant their approval in referendums.

The proposed constitutional amendment — which would have to pass the Legislature, and be approved by voters statewide — is modeled after Proposition 2½, adopted by Massachusetts voters in the 1980s. But while that proposal also capped property taxes at 2.5 percent of the assessed value of a community’s property, New Jersey — where many communities already exceed that threshold — would only adopt the piece limiting annual increases to 2.5 percent.

The Commissioner argued that the caps on state spending for direct state services, as well as those at the local level, coupled with the other reform tools proposed, would lead to increased money for districts over the long haul. He based this on a review over the last twenty (20) years of rapid state spending, leading to decreased funds for local districts. He argued that politicians at the state level had difficulty in sending money to other levels of government when revenue could be spent at the state level on pet projects. He further argued that this would have equated to billions of dollars for kids in the classroom. He also stated these changes will provide more money for pre-school, smaller class sizes, special education support and after-school programming.

Moratorium on NJQSAC

The Commissioner proposed a one year moratorium on NJQSAC for those districts who are deemed to be high performing. The moratorium will provide the department time to review the current system.

As of the end of this year, all districts have been through the NJQSAC process with many returning through the process more than once. Those districts which are not high performing will continue be remain in the “loop” until they become high performing. While some of the State Board members were supportive of the moratorium, several expressed concerns about those districts who had not yet reached high performing status and ensuring proper support for them. A resolution authorizing the moratorium will be put before the State Board next month.

Transition Report

The State Board also heard from Commissioner Schundler on the Governor’s Transition Report. Schundler stated that while the Governor had not written the report it represents a lot of what the Governor believes. The Governor wants to reduce regulatory and reporting burdens as local districts lack resources, as does the State, to accomplish many of these tasks. The Governor’s goal is reflected in the moratorium of NJQSAC.

The Governor believes that resources would better be directed toward the classroom. The Commissioner also stated that this was in concert with what the Obama Administration is advocating for at the federal level. The Governor’s approach is streamlined standards, a hands-off approach but accountability for failure. In addition, performance and the Governor’s approach to evaluation considers the different skills sets children possess.

Status of Charter Schools

Approximately eleven (11) charter schools were approved to open this coming year. Simultaneously one (1) charter school will be closing in June after a long review. According to the Commissioner, a number of Urban Superintendents are advocating for authority to approve charter schools in order to facilitate a closer relationship between districts and charters within them. This may not lead to an increased number of charters but may improve the relationship between districts and charter.

Common Core Standards for Language Arts and Math

The history and process of development of the common core standards was also discussed by the Board. The National Association of School Boards of Education held a conference in early March on the subject. Podcasts are available at www.nasbe.org for review. The standards are tentatively scheduled for adoption in August.

Items for Consideration

Religious Holiday Calendar 

Reporting: Division of Field Services

Stage: Adoption

Commissioner’s Recommendation:
That the State Board adopt the resolution pertaining to the annual calendar of religious holidays for the 2010-2011 school year as established at N.J.A.C. 6A:32-8.3(j), pursuant to N.J.S.A. 18A:36-14-16.

Background:
Currently the Commissioner of Education, with approval of the State Board, is charged with establishing a calendar of religious holidays annually. Students absent from school because of a religious holiday may not be deprived of any award or of eligibility or opportunity to compete for any award because of such absence. Similarly, students who miss a test or examination because of absence on a religious holiday must be given the right to take an alternate test or examination. To be entitled to the privileges set forth above, the student must present a written excuse signed by a parent or person standing in place of a parent.

Absences because of a religious holiday must be recorded in the school register or in any group or class attendance record as an excused absence. Absences cannot be recorded on any transcript or application or employment form or on any similar forms. Boards of education, at their discretion, may add other days to the list for the schools of their districts. 

Discussion: No discussion

Outcome: Approved

High School Graduation Requirements

Reporting: Division of Educational Standards and Programs

Stage: Resolution

Commissioner’s Recommendation: That the State Board adopt the resolution pertaining to the annual calendar of religious holidays for the 2010-2011 school year as established at N.J.A.C. 6A:32-8.3(j), pursuant to N.J.S.A. 18A:36-14-16.

Background:

The department recommended delaying the implementation of a personal financial literacy course as a graduation requirement for the upcoming school year. P.L.2009, c.153 calls for a three year pilot program. The department likes the idea of having an initial target group and seeks to delay implementation of its personal financial literacy graduation requirement to give this pilot program an opportunity to complete its course. The department proposed a resolution to delay implementation of this requirement till 2013.

Discussion:

Board members were highly opposed to the idea of delaying this requirement. There was discussion of delaying the implementation for one year instead of two. The Board amended the resolution to reflect this change, but even this change failed to carry the necessary votes to permit a delay in implementation.

Outcome: Not approved

Professional Licensure and Standards

Reporting: Division of Educational Standards and Programs

Stage: First Discussion

Commissioner’s Recommendation:

That the State Board discuss amendments to the regulations pertaining to alternate route instruction candidates proposed at N.J.A.C. 6A:9, Professional Licensure and Standards pursuant to N.J.S.A. 18A:1-1, 18A:4-15, 18A:6-34, 18A:6-38, 18A:26-10 and 18A:26-2.7

Background:

The department recommended amending current regulation to allow completion of content study to be documented directly on the transcript of a two-year, regionally accredited college. This amendment is consistent with both the State Board Strategic Plan and the Department’s mission statement.

Due to current regulatory restriction, individuals seeking alternate route certification who only need to take an associates level class to obtain certification and take a class at a community college must reach out to a four-year institution to have the class referenced on a four-year transcript at a cost of approximately $600. This change will allow presentment of such classes on the transcript of a two-year institution so long as it is regionally accredited.

Discussion:

All Board Members expressed that this was a great idea.

Outcome: The proposal will move to the adoption phase next month.

President’s Report

President Hernandez also indicated that the Board’s will be scheduling their retreat and strategic planning session in the near future.