Murphy Administration Approves $450 Million in School Construction Funding

Use of $350 Million in State Debt Prevention Funds Will Save Taxpayers Millions

September 7, 2023

Trenton, NJ – Today the New Jersey Department of Education (NJDOE) and the New Jersey Schools Development Authority (SDA) announced the approval of nearly $450 million in school construction funds to address critical facilities needs in 261 school districts throughout the state.

Of this $450 million in construction, $350 million will come from the State’s Debt Defeasance and Prevention Fund, which was established two years ago to help pay down existing debt and avoid incurring new debt by funding projects outright rather than incurring new borrowing. This move is expected to save the State and taxpayers roughly $350 million in total as opposed to issuing 30-year bonds at current interest rates.

“This funding is part of a state and local partnership that will invest in hundreds of school projects while saving a significant amount of taxpayer dollars. Coupled with an infusion of local funding, this collaboration will generate more than $1 billion in important upgrades to schools throughout New Jersey,” said Governor Phil Murphy. “Ensuring our students receive a world-class education in a first-rate learning environment while relieving the pressure on local taxpayers is a top priority of my Administration.”

“This funding demonstrates our ongoing commitment to providing safe, modern learning environments,” said Dr. Angelica Allen-McMillan, Acting Commissioner of Education. “In addition, improving the physical and safety conditions of school buildings improves working conditions for teachers and elevates the pride and support of the school community as a whole. This funding will benefit countless students in hundreds of schools throughout New Jersey.”

“The advancement of these projects further ensures high-quality learning environments for students and staff, addressing issues that can affect health and safety including replacement of leaky roofs and inefficient boilers,” said Manuel Da Silva, SDA Chief Executive Officer. “This grant funding impacts hundreds of local communities around the state by helping districts leverage resources to pay for important school facility projects while continuing to bolster the State’s construction industry.”

The NJDOE determined the selection of school projects receiving grant funds, and the grants are administered by the Schools Development Authority. School projects were identified by need, such as essential building systems upgrades like the repair or replacement of structural components, mechanical/heating and cooling, and electrical systems; building roofs; and to resolve building code issues. The funding will provide for numerous high-priority upgrades including 320 HVAC systems, 79 boilers or water heaters, and 211 roofs.

Besides the $449.9 million in state funding, local contributions totaling $598.5 million are estimated to bring the total cost of construction to more than $1 billion. The state-funded grants represent at least 40 percent of eligible costs for projects in the Regular Operating Districts (RODs) to address health and safety issues and other critical needs.

Statewide Summary of 2023 ROD Grants
Total Cost of Projects$1,044,599,377
State Share$449,993,347

Funding for the school construction initiative was made possible through legislation signed in 2022 and grant funding from SDA allocations.

A list of districts receiving state construction funding is attached to the bottom of this news release.

“Where we invest taxpayer money reflects our priorities and we will always put our kids first,” said Senate President Nicholas Scutari. “Now, with the help of union workers, our schools will be safer, and more inviting for our children and teachers.”

“This critical funding is the latest investment we are making in New Jersey’s school districts,” said Assembly Speaker Craig J. Coughlin. “By providing financial support for these construction projects, our school districts can focus on investing in our children and our teachers, without worrying about allocating funds for costly building repairs. This is another example of how our prudent fiscal management is enabling us to give money back to local communities. This funding serves as local tax relief. Without it, the costs for these necessary repairs would otherwise come from local taxpayers.”

“With schools closing early all over the state this week due to the heat, it is clear our educational infrastructure is not only dated and deteriorating but also ill equipped to handle our changing climate,” said Senate Majority Leader Teresa Ruiz. “While it is just a start, it is wonderful to see money getting out the door to allow districts to make much needed improvements to their facilities. I look forward to seeing the impact these projects have on the children of New Jersey.”

“This investment affirms our commitment to provide all New Jersey students with a high-quality education,” said Assembly Majority Leader Louis D. Greenwald. “We know that a safe and comfortable learning environment is critical for student focus. These construction projects are essential for our school facilities to continue to live up to the high standards we have set for our best-in-the-nation public education system. I’m thrilled for the hundreds of communities across the state that will benefit from today’s announcement.”

“Schools are the centers of children’s lives and they deserve buildings and facilities that encourage progress during this critical time in their development,” said Senator Paul Sarlo, Chair of the Senate Budget and Appropriations Committee. “In collaboration with our local partners, we are making much needed investments in the classrooms and other physical spaces that will support their academic growth.”

“Many New Jersey schools are in need of serious improvements and repairs, whether it be a new roof or the installation of central air conditioning,” said Senator Gopal, Chair of the Senate Education Committee. “This funding will go a long way in ensuring our children can continue to receive the high quality education we’ve come to expect.”

“Today’s announcement demonstrates our commitment to working together with the Governor to advance school improvement projects throughout New Jersey,” said Assemblywoman Pamela Lampitt, Chair of the Assembly

Education Committee. “These funds are a result of collaborative efforts in the most recent budget and beyond. We look forward to seeing districts utilize this funding to help complete critical repairs so that administrators and teachers can focus on providing the best possible education for our children.”

CountyDistrictEstimated Project CostState Share
AtlanticAbsecon City832,000332,800
 Egg Harbor City673,608516,665
 Egg Harbor Township15,162,0006,591,932
 Galloway Township4,000,0001,624,664
 Greater Egg Harbor Regional2,000,0001,076,500
 Hamilton Township697,840353,959
 Linwood City423,950169,580
 Margate City2,628,9631,051,585
 Ventnor City1,454,838581,935
 Cliffside Park1,791,966716,786
 East Rutherford685,820274,328
 Elmwood Park1,706,900682,760
 Englewood City7,382,0002,952,800
 Fair Lawn3,797,6651,519,066
 Fort Lee1,417,500567,000
 Glen Rock774,548309,819
 Hackensack City5,092,9592,037,184
 Ho Ho Kus334,909133,964
 Mahwah Township11,041,3374,416,535
 New Milford6,038,3502,415,340
 North Arlington2,988,7001,195,480
 Northern Valley Regional1,525,125610,050
 Palisades Park1,086,600434,640
 Park Ridge836,700334,680
 Pascack Valley Regional1,872,058748,823
 Ridgefield Park Township6,230,4102,492,164
 Ridgewood Village12,745,6655,098,266
 River Edge3,052,0001,220,800
 Rochelle Park Township777,926311,170
 Saddle Brook Township4,133,5001,653,400
 Upper Saddle River2,973,2951,189,318
CountyDistrictEstimated Project CostState Share
 Westwood Regional13,482,0845,392,834
 Woodcliff Lake2,878,1501,151,260
 Wyckoff Township3,445,0001,378,000
BurlingtonBeverly City1,246,926498,770
 Bordentown Regional595,000238,000
 Burlington County Vocational8,499,0003,399,600
 Burlington Co Special Services14,239,7495,695,900
 Burlington Co. Vocational10,192,0414,076,816
 Edgewater Park Township1,696,885921,755
 Evesham Township86,40034,560
 Lenape Regional4,635,9361,854,374
 Moorestown Township4,237,0601,694,824
 Mount Holly Township650,717260,287
 Eastern Camden County Regional5,069,2502,027,700
 Gloucester Township17,035,5248,027,041
 Laurel Springs27,60014,991
 Pennsauken Township858,450548,280
 Sterling HS District609,839368,986
 Voorhees Township1,216,000486,400
 Voorhees Township2,937,0001,174,800
 Winslow Township6,406,5402,821,447
Cape MayCape May City6,375,0002,550,000
 Ocean City10,501,8164,200,726
CumberlandDeerfield Township1,249,250563,693
 Hopewell Township295,201125,931
 Upper Deerfield Township868,912483,971
EssexBloomfield Township43,147,57017,259,028
 Caldwell-West Caldwell9,178,5203,671,408
 Cedar Grove Township123,00049,200
 Fairfield Township130,00052,000
 Glen Ridge3,087,7601,235,104
 Livingston Township4,049,0001,619,600
 Millburn Township7,768,9353,107,574
 South Orange-Maplewood8,687,7713,475,108
 West Orange Town141,90056,760
CountyDistrictEstimated Project CostState Share
 Franklin Township3,398,7901,359,516
 Harrison Township567,112226,845
 Monroe Township4,008,0251,946,205
 South Harrison Township585,000234,000
 Washington Township9,921,2573,968,503
 West Deptford Township2,993,4191,197,368
 Woodbury City930,000635,114
HudsonBayonne City11,028,5704,654,589
 East Newark670,000413,415
 Kearny Town6,396,0463,073,652
 Secaucus Town9,447,7003,779,080
HunterdonAlexandria Township992,100396,840
 Clinton Town3,799,9981,519,999
 Delaware Township1,338,000535,200
 Delaware Valley Regional1,524,750609,900
 East Amwell Township480,000192,000
 Holland Township516,700206,680
 Hunterdon Central Regional15,170,0076,068,003
 Kingwood Township804,700321,880
 Lebanon Township2,522,6001,009,040
 Readington Township552,115220,846
 South Hunterdon Regional2,350,000940,000
 Tewksbury Township2,079,520831,808
MercerEast Windsor Regional14,259,5205,959,595
 Hamilton Township24,480,6309,792,252
 Hopewell Valley Regional10,892,0004,356,800
 Mercer Co Special Service14,627,2965,850,918
 Robbinsville Township17,125,0006,850,000
 Cranbury Township1,738,638695,455
 Edison Township3,341,1641,336,466
 Highland Park776,697310,679
 Monroe Township10,125,1704,050,068
 North Brunswick Township8,661,1003,464,440
 Old Bridge Township23,067,1209,226,848
 South Plainfield3,330,0001,332,000
 South River1,589,118783,879
 Woodbridge Township1,582,192632,877
MonmouthAtlantic Highlands1,084,015433,606
 Freehold Regional1,080,000432,000
 Freehold Township3,536,0001,414,400
 Hazlet Township2,986,7501,194,700
CountyDistrictEstimated Project CostState Share
 Henry Hudson Regional853,613341,445
 Howell Township17,395,6256,958,250
 Little Silver2,860,6001,144,240
 Marl Township1,749,510699,804
 Matawan-Aberdeen Regional22,120,0008,848,000
 Middletown Township7,499,7012,999,880
 Millstone Township3,727,9431,491,177
 Ocean Township4,622,7601,849,104
 Red Bank1,014,000405,600
 Red Bank Regional4,732,0001,892,800
 Rumson-Fair Haven Regional1,095,791438,316
 Sea Girt483,600193,440
 Shore Regional2,123,130849,252
 Spring Lake2,834,6241,133,850
 West Long Branch817,463326,985
 Chester Township4,009,4871,603,795
 Dover Town3,997,5002,836,626
 Florham Park4,744,8811,897,952
 Hanover Township1,701,600680,640
 Harding Township1,906,620762,648
 Jefferson Township1,892,200756,880
 Long Hill Township930,000372,000
 Mendham Township1,979,459791,784
 Montville Township3,257,8221,303,129
 Morris Hills Regional706,146282,458
 Morris Plains3,426,1801,370,472
 Morris School District8,441,6503,376,660
 Mount Olive Township3,334,0001,333,600
 Mountain Lakes2,260,500904,200
 Parsippany-Troy Hills Township468,176187,270
 Pequannock Township2,905,5001,162,200
 Randolph Township4,000,5031,600,201
 Rockaway Township1,263,064505,226
 School District of the Chathams4,373,2201,749,288
 West Morris Regional3,378,2501,351,300
OceanBerkeley Township563,904225,562
 Brick Township11,484,9664,593,986
 Central Regional3,354,3921,341,757
 Lacey Township5,600,0002,240,000
 Little Egg Harbor Township1,251,900500,760
 Plumsted Township2,706,0001,082,400
 Point Pleasant6,721,5382,688,615
 Stafford Township4,546,6851,818,674
CountyDistrictEstimated Project CostState Share
 Toms River Regional200,00080,000
 Clifton City15,094,3006,037,720
 North Haledon1,213,886485,554
 Pompton Lakes1,139,051455,620
 Prospect Park4,052,4002,948,255
 Wayne Township2,387,029954,812
 Woodland Park3,807,5401,523,016
SalemMannington Township131,54652,618
 Oldmans Township1,668,315667,326
 Pittsgrove Township2,100,0001,063,602
 Quinton Township260,665120,785
SomersetBedminster Township5,576,6202,230,648
 Bernards Township20,545,2998,218,120
 Bound Brook4,635,0401,854,016
 Branchburg Township3,025,9131,210,365
 Bridgewater-Raritan Regional17,745,3047,098,122
 Green Brook Township3,195,0051,278,002
 Hillsborough Township1,018,650407,460
 Montgomery Township6,167,5502,467,020
 North Plainfield6,639,3194,292,672
 Warren Township879,700351,880
SussexAndover Regional1,217,100486,840
 Byram Township1,393,300557,320
 Frankford Township787,700315,080
 Green Township324,300129,720
 Hampton Township856,000342,400
 Hardyston Township1,078,000431,200
 High Point Regional1,200,100480,040
 Kittatinny Regional999,764399,906
 Lafayette Township755,700302,280
 Newton Town5,369,5452,686,169
 Sandyston-Walpack Township255,527102,211
 Sussex County Vocational1,153,100461,240
 Sussex-Wantage Regional485,300194,120
 Vernon Township4,352,6461,741,058
UnionClark Township1,440,250576,100
 Hillside Township1,196,500555,208
 Linden City5,021,4682,008,587
CountyDistrictEstimated Project CostState Share
 New Providence124,31049,724
 Rahway City1,018,120448,081
 Roselle Park4,595,0002,064,460
 Springfield Township2,676,2871,070,515
 Summit City12,606,5005,042,600
 Union Township326,500130,600
WarrenAllamuchy Township11,734,1984,693,679
 Franklin Township1,369,380547,752
 Great Meadows Regional592,500237,000
 Lopatcong Township2,694,8701,077,948
 Mansfield Township942,200376,880
 North Warren Regional1,474,725589,890
 Warren Hills Regional3,055,7801,222,312
 White Township1,050,457420,183