New Jersey Governor Corzine Lauds $891 Million in State Fiscal Stabilization Funds

June 05, 2009 -- NEWARK - New Jersey Governor Jon S. Corzine today welcomed the announcement by U.S. Department of Education Secretary Arne Duncan that New Jersey's State Fiscal Stabilization Fund application has been approved in the amount of $891 million, and New Jersey will be eligible to apply for another $440 million in the fall. Duncan was in New Jersey for a visit to North Star Middle School Academy's Clinton Hill campus in Newark.

The stop is part of the Secretary's "Listening and Learning: A Conversation about Education Reform" tour.

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"We are proud of our commitment to education in New Jersey," Governor Corzine said. "While these difficult economic times have led other states to reduce aid and support for public education, we have remained steadfast by increasing direct school aid in the Fiscal Year 2010 budget by about $270 million. This increase was made possible by the State Fiscal Stabilization Fund dollars. We are also deeply appreciative of the increases in funding for Title I and IDEA for districts under the American Recovery and Reinvestment Act."

The State Fiscal Stabilization Fund (SFSF) program is a one-time appropriation of $53.6 billion under the American Recovery and Reinvestment Act (ARRA). Of the amount appropriated, the U. S. Department of Education will award governors approximately $48.6 billion by formula under the SFSF program in exchange for a commitment to advance essential education reforms to benefit students from early learning through post-secondary education. These funds also will help stabilize state and local government budgets in order to minimize and avoid reductions in education and other essential public services.

The application approved today by the U.S. Department of Education describes how New Jersey will use the total $1.33 billion in funding that is available under the State Fiscal Stabilization Fund. Of the total $1.33 billion for the State Fiscal Stabilization Fund about $1.057 billion will be used for elementary and secondary education, about $74 million for higher education, and $200 million for other budget relief in both FY 2009 and FY 2010.

As proposed in the Governor's budget, the funds for elementary and secondary education will be used to implement the new school funding formula, the School Funding Reform Act, which ensures that the needs of all students are met regardless of where they reside. The New Jersey Supreme Court recently affirmed that the School Funding Reform Act is constitutional and ensures a thorough and efficient system of public education for children.

The State Fiscal Stabilization Fund dollars will also be used to restore cuts for higher education that were included in the Governor's proposed budget for FY 2010. These cuts will be restored if certain conditions, including limits on tuition increase are met. Furthermore, the increase in funding for Tuition Aid Grants (TAG) proposed in the Governor's FY 2010 budget will be supported with State Fiscal Stabilization Fund dollars. The bulk of the funds from the government services portion of the State Fiscal Stabilization Fund are likely to be used to offset some of the existing costs the State faces for the remainder of FY 2009 for health care and seniors.

To date, over $20 billion in Recovery Act funding under the State Fiscal Stabilization Fund has been approved for 26 states.

Governor Corzine and Secretary Duncan also toured several classrooms, participated in a community circle to celebrate student academic achievement, and held a roundtable with students and their parents.

North Star Academy, a charter school, has set the bar high for its students by instituting a challenging curriculum, offering a longer school day and extended school year. The school's Clinton Hill campus ranks among the highest performing middle schools in the state of New Jersey.

"We are proud to have a partner in Washington who recognizes the high quality of so many of our schools across New Jersey, who understands the value of a quality education, and has the foresight and dedication to do the right thing for the future of our nation and by extension, the future of New Jersey," the Governor said. "I want to thank Secretary Duncan for his leadership and his interest in improving educational opportunities for students across the nation, and specifically, our next generation of leaders in the Garden State."

For additional information on the American Recovery and Reinvestment Act and the state's recovery efforts, visit www.recovery.gov and www.nj.gov/recovery/.

Source: New Jersey Governor