|FOR IMMEDIATE RELEASE||
CONTACT: Tom Vincz
|May 30, 2004||
Treasurer’s Statement on Supplemental Abbott Aid
TRENTON — New Jersey Treasurer John E. McCormac issued the following statement today regarding supplemental aid to Abbott school districts in the FY 2005 budget:
“As I had warned in testimony before the Legislature’s budget committees earlier in May, New Jersey’s improving revenue picture for FY 2005 had not yet taken into account the supplemental Abbott district aid necessary to satisfy the funding requirements mandated by the State Supreme Court.
"Based on the Department of Education’s notice to the Abbott districts, I am requesting that the Legislature provide $195 million in additional funding for these districts in FY 2005. Approximately $155 million of this increase will meet the Department of Education total award of $336 million. The balance of Treasury’s commitment -- $40 million – will be placed on reserve in anticipation of subsequent Abbott funding needs. Based on past experiences with Supreme Court mandates, establishing a special reserve as a contingency for future awards from appeals is prudent budgeting.
funding will take the FY 2005 surplus, which was revised upward to
$700 million just last week, down to $505 million.
This recommendation utilizes the balance of the surplus account so
that each and every action taken in the next 30 days to reduce revenues
or increase appropriations has to be matched by a corresponding revenue
increase or appropriation decrease."