Referendum Voting - What will I see on the Ballot?
Bond Proposal Question
The Board of Education of the Delaware Valley Regional High School District in the County of Hunterdon, New Jersey (the "Board") is authorized to:
(a) purchase and install a fire alarm system at Delaware Valley Regional High School to replace the existing 20-year old system equipment;
(b) appropriate $926,000 for such acquisition and improvements; and
(c) issue bonds in an amount not to exceed $926,000.
The final eligible costs for the projects approved by the New Jersey Commissioner of Education are $926,000.
The project includes $0 for school facility construction elements in addition to the facilities efficiency standards developed by the Commissioner of Education or not otherwise eligible for State of New Jersey (the "State") support pursuant to N.J.S.A. 18A:7G-5(g).
The State debt service aid percentage is equal to 40% of the annual debt service with respect to the final eligible costs of the projects.
Debt Service Aid - 34% vs 40%
Why does the referendum question reference 40% state aid but the district's information is only references 34% state aid?
The Educational Facilities and Construction Act provides funding for new construction and renovation projects. Funding is stated in the law at 40%. When a district secures it's share of the project through a bond referendum, this aid is called Debt Service Aid.
However, through the Annual Budget Appropriation Bill that the state passes each year, the level of funding for Debt Service Aid has been funded at 85%. Therefore, .40 times .85 = .34. The state has funded debt service at at 85% for the last 12 years. We are using the 34% to estimate the amount we will receive in an effort to be transparent and conservative about the amount the district will receive.
34% is a more realistic estimate of the debt service amount.
