Regular Operating District Grants
On July 9, 2008 legislation was signed providing $1 billion in funding for Regular Operating Districts (RODs), including $50 million for vocational schools. The Department of Education (DOE) has developed an application process to allocate these new funds, which are disbursed by the SDA. More information on the Grant Program for School Facilities Projects in Regular Operating Districts is available on the DOE Web site at: www.state.nj.us/education/facilities.
In 2000, the Educational Facilities Construction and Financing Act provided an initial authorization of $2.6 billion for grants to RODs, including $100 million for vocational schools. This funding has been fully obligated.
GRANT ELIGIBILITY
School districts are eligible to receive at least 40 percent of eligible project costs. For a school facilities project to be considered for grant funding, the proposed scope of work must be 100 percent eligible for State support. Funds may be used to address health and safety, overcrowding, provide spaces to deliver in-district programs for disabled students, or deliver full-day kindergarten facilities for school districts required to provide full-day preschool. Only projects that are 100 percent eligible for state support and included in one of at least three prioritization "levels" are being considered by DOE, although districts may request debt-service aid for other projects.
AWARDS
The first round of grant funding was announced in March 2009, preliminarily approving $181 million in state funding for 400 projects with total estimated project costs of $448 million. Funds are contingent on budget or voter approval by the local districts.
PAYMENT
Grants are paid out as districts attain specific project milestones.
For projects with a final eligible cost of more than $250,000:
| Design phase payment (representing reimbursement of payments to design and other consultants) |
10% |
| 35% Construction Completion |
30% |
| 65% Construction Completion |
40% |
| Substantial Completion |
15% |
| Final Completion |
5% |
For projects with a final eligible cost that is less than or equal to $250,000:
| 50% Construction Completion |
50.5% |
| Substantial Completion |
45% |
| Final Completion |
0.5% |
At each request for payment by the district, SDA sends a Grant Inspection Team to review documents justifying disbursement. Teams also physically inspect the school.
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