Abbott district program comes under scrutiny

Allegations of waste and mismanagement surface. Lawmakers to question state education officials.
Wednesday, April 12, 206 • By TERRENCE DOPP • The Express-Times

TRENTON | A spokesman for the Assembly Budget Committee chairman said Tuesday reports of waste and mismanagement in the state's court-mandated preschool program need to be investigated.

Assemblyman Louis Greenwald, D-Camden, said he plans to grill Department of Education officials when they come before his committee during hearings on Gov. Jon Corzine's proposed $30.9 billion budget.

"These are very serious allegations that have been raised, and they certainly will be part of the budget committee's questioning of state education officials when they come before the committee," said Derek Roseman," Greenwald's spokesman.

"That's all I can say now. It's premature to suggest anything until we get answers to questions this committee may have."

New Jersey's 31 poorest school systems, known as Abbott Districts after the series of court cases that created them, are under Supreme Court mandate to phase in free pre-school for 3- and 4-year-olds. The roster of schools includes Salem, Phillipsburg, and other mostly urban, poor communities.

Under the current system, taxpayers throughout the state collectively fund the districts at a level equal to the richest schools.

According to a spokesman for the Department of Education, the Supreme Court's 1999 order left urban and low-income districts without the classroom space to comply.

As a result, they contracted with 400-plus private, state licensed centers to do so in the 2002-03 school year and didn't require quarterly financial reports until the following year, DOE officials said.

The recent revelations are a sign the agency is "getting its arms around" the issue of waste, said chief auditor Bob Ortley.

Among the reported abuses recorded by The Record of Hackensack are $900,000 in personal loans to administrators at a dozen North Jersey pre-kindergarten providers, owners writing off pet food, chocolates and even a Caribbean time share.

Assemblyman Michael Doherty, R-Warren/Hunterdon, has called for an end to the Abbott system of funding, which he said means schools in his district get just $1 in state funding for every $5 that go to Abbott districts.

Doherty, a member of the Assembly Appropriations Committee, said the Abbott system does not foster accountability by school administrators in those communities.

"Clearly it was an abuse and consistent with what you've seen in the Abbott districts and with the (School Construction Corp.). People are not as careful spending someone else's money as they are their own," said Doherty, whose district includes Phillipsburg. "They see in essence free money from Trenton."


Terrence Dopp is Trenton correspondent for The Express-Times. He can be reached at 609-292-5154.
© 2006 The Express-Times. Used with permission.

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