New Jersey Network - Transition

Transition

In 2008, in the face of a proposed 35 percent cut in funding, NJN officials asked the state legislature for permission to become an independent nonprofit entity. Under this proposal, the state network would likely be transferred to its nonprofit fundraising arm, the NJN Foundation. Two consultants looking into fundraising options say that breaking off from the state would trigger an avalanche of private funding.

After assuming the office of New Jersey Governor in 2010, Chris Christie voiced his support for transforming NJN into a not-for-profit organization in his March 2010 budget speech. On October 15, 2010, a bipartisan legislative task force called for a "dramatic reconfiguration" of the state network, but not full privatization. Christie nonetheless moved forward with plans to remove state funding. On November 17 NJN handed layoff notices to 130 workers, leading to speculation that the state network would shut down on January 1, 2011, when funding from the state would end. On December 17, 2010, Gov. Christie signed legislation for transferring the state network to independent funding. The legislation also suspended layoffs.