School agency cited for waste is back seeking $3.25 billion Wednesday, February 07, 2007 • BY JOE DONOHUE • Star-Ledger Staff Representatives of the Schools Construction Corp. began efforts yesterday to persuade state lawmakers to allow the agency to build another $3.25 billion in new schools despite a long record of mismanagement. "There's a critical need now for legislative action which commits future funding for the schools program," SCC Chairman Barry Zubrow told the Legislature's Joint Committee on the Public Schools. Scott Weiner, the agency's chief executive officer, said he is "very comfortable we can handle the next $3 billion" now that the agency has drastically revamped its operations. Six years ago, the Legislature allowed the SCC to borrow $8.6 billion to build new schools. Since then, 28 new schools have been erected, while 50 more have undergone major renovations. The remaining funds are needed to complete work on 34 school projects now underway. Gov. Jon Corzine overhauled the agency last year after investigations found rampant cost overruns and weak management that left the program vulnerable to "waste, fraud and abuse." While many lawmakers wanted to abolish the agency, Zubrow and Weiner said sweeping operational changes, including more openness, tough ethical standards and stronger project oversight, have bolstered the agency enough so it warrants a second chance. They are seeking approval of legislation to let the agency borrow $3.25 billion -- including $2.25 billion for construction in Newark, Camden and 29 more of the state's neediest districts, and at least $750 million for wealthier districts. Zubrow, who once worked with Corzine at Goldman Sachs, said borrowing money may not be the ideal way to finance the next wave of construction. He said new schools would be prime candidates for funding if the state proceeds with the sale or lease of assets like the New Jersey Turnpike or the Lottery. One example of the agency's new ways: It announced yesterday it is seeking $749,000 in restitution from Hunt Construction Corp. of Scottsdale, Ariz., the general contractor for the $88 million Science Park High School in Newark. The SCC contends the company missed several deadlines that delayed the project's completion. Weiner said the SCC hopes to collect $5 million this year through such assessments against contractors. The officials generally were well received by the Democratic-controlled committee. Sen. Ronald Rice (D-Essex), co-chairman, did warn them to hire more minorities and women in top-level jobs. But Assemblywoman Jennifer Beck (R-Monmouth), who hopes to oust Democrat Ellen Karcher from the 12th district Senate seat, cited recent reports of $15 million in questionable spending in the state's largest and poorest school districts, and said there "isn't going to be a stomach for additional funding" for those districts. Assemblyman Craig Stanley (D-Essex), another co-chairman whose legislative district includes two of the so-called "Abbott" school districts, called her remarks "inflammatory" and "divisive" and cut short her questioning. © 2006 The Star-Ledger. Used by NJ.com with permission.