A new law in New Jersey will soon allow school districts to fund large-scale capital improvement projects without needing voter approval through referendums. Instead, districts can borrow funds through their county improvement authorities, a process that has previously required direct voter consent.
Little Falls in Passaic County is expected to be the first district in the area to use this new method after two failed attempts to gain voter approval for a $36 million project. School officials had planned a third referendum but decided against it upon learning they could seek financing from the Passaic County Improvement Authority instead. The authority, established in 2002, helps finance public projects such as infrastructure and schools.
Marc Pfeiffer, senior policy fellow at Rutgers University’s Edward J. Bloustein School of Planning and Public Policy, said the change responds to ongoing challenges faced by districts trying to upgrade facilities due to enrollment growth or state mandates. “It allows the state, which is responsible for providing a thorough and efficient education, to act,” Pfeiffer said.
Repeated rejection of referendums by voters has left some school districts unable to address pressing needs. In Little Falls, proposals were voted down in both 2021 and 2022. Pfeiffer noted that voters may reject measures for various reasons unrelated to school needs, including dissatisfaction with municipal governance or broader economic concerns.
“It’s an attempt to balance competing interests,” Pfeiffer said. “Times change. People change. Laws change.” He added that he is not surprised public officials are reluctant to comment on the record since property taxes remain highly unpopular.
