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Tuesday, April 18, 2006 • BY JOHN MOONEY • Star-Ledger Staff

On the eve of today's school budget votes, Gov. Jon Corzine called for greater examination -- and, in some cases, tighter controls -- of public school spending in both suburban and urban districts.

Corzine yesterday signed a bill that would give the state added powers to intervene in and monitor financially troubled districts. The School District Fiscal Accountability Act was aimed, in part, at the deficit-ridden Willingboro schools in Burlington Township, but applies to any district in distress, he said.

And it was not lost on the new governor that a vast majority of districts' spending plans will go today before their respective voters -- albeit not that many voters. Turnout rates for school elections are typically in the teens.

"We need to make sure we are spending those dollars wisely, and I hope the public will take very seriously those votes (today)," Corzine said. "We know turnouts are very, very low, and the scrutiny is very limited to what goes on in these budgets."

Corzine also used the occasion to talk about separate plans to step up financial oversight in the mostly urban districts that fall under the state Supreme Court's Abbott v. Burke school equity rulings.

Earlier this month, the Corzine administration asked the court to allow him to freeze funding for the 31 Abbott districts and to subject them to outside audits to insure the money they currently have is properly spent.

The audits would start in Newark, Paterson, Jersey City and Camden.

The first three are currently under state operation, the fourth under strict state oversight, and each has already seen voluminous financial reports in the last several years, by both the state Department of Education and outside auditors.

But Corzine said yesterday he wants to see the evaluations for himself, convinced these four districts, all among the state's largest, could especially use greater review.

"I don't have the confidence that up to now it has been done the way I want to see it done," he said.

Corzine's pledge to rein in education spending is in keeping with his firm approach so far with public schools. Blaming an inherited $4.5 billion deficit, Corzine froze overall education funding in his proposed state budget for next year and has spoken several times about finding greater efficiencies and savings in school spending.

"It is not enough any more to put money into solving our problems," he said yesterday. "As we put money in, we feel the accountability is as important as the investment."

The new accountability act would specifically provide districts with no-interest loans of up to $10 million over 10 years in the form of advanced state aid payments. The first to apply would be Willingboro schools, which this year suffered a $10 million deficit due to financial mismanagement.

But with the loan comes greater scrutiny in the form of state monitors, officials said. And the new law requires that any district that runs a deficit or has repeated financial accounting problems would face the same monitoring and intervention.

"These are real audits, forensic audits to find out where the problems are, and monitors to make sure the money is thoroughly and efficiently used," Corzine said.

The state school boards association did not take a stand on the legislation, but yesterday spokesman Frank Belluscio said the extent of problems faced in Willingboro is "an exceptional situation."

"That does not reflect what happens in most school business offices by any stretch of the imagination," Belluscio said. "Generally, we agree there should be accountability, but also believe the accountability has been there."

Corzine backs new scrutiny of school district spending

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