The Garden State Coalition of Schools just put out a press release regarding their conversation yesterday afternoon with Lucille Davy, who confirms that Corzine will “delay” the next state school aid payment until July. This enables him to do a little bookkeeping abracadabra with the $383 million due and defer the debt until next year.
Does it matter? Depends upon whom you ask. According to an A.P. story in Forbes, Corzine assured everyone that the delay won’t hurt school districts because the State will pay interest on the payment and it’s just a matter of timing. Jersey School Boards Association spokesman Frank Belluscio worried that in 2003, the last time the State deferred a payment, schools never saw the money: “It was almost like a permanent deferral.”
Hmm. What’s the difference between a “permanent deferral” and reneging on a commitment? Maybe it’s all in the timing.
Commissioner Davy recommends that districts “need to review their cash flow situation immediately to see if they will require borrowing,” according to Garden State Coalition, and suggest districts “use a ‘cash flow summary’ sheet already posted on DOE website.”