Bill Text: NJ A4161 | 2024-2025 | Regular Session | Comm Sub
Bill Title: Establishes Stabilized School Budget Aid Grant Program to restore certain portions of State school aid reductions; permits certain school districts to exceed tax levy growth limitation in 2024-2025 school year; appropriates $44.7 million.
Spectrum: Moderate Partisan Bill (Democrat 17-2)
Status: (Passed) 2024-05-14 - Approved P.L.2024, c.13. [A4161 Detail]
Download: New_Jersey-2024-A4161-Comm_Sub.html
ASSEMBLY COMMITTEE SUBSTITUTE FOR
ASSEMBLY, No. 4161
STATE OF NEW JERSEY
221st LEGISLATURE
ADOPTED APRIL 11, 2024
Sponsored by:
Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblywoman MITCHELLE DRULIS
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
Assemblywoman PAMELA R. LAMPITT
District 6 (Burlington and Camden)
Co-Sponsored by:
Assemblywomen Bagolie, Reynolds-Jackson, Assemblymen Simonsen, Conaway and Sauickie
SYNOPSIS
Establishes Stabilized School Budget Aid Grant Program to restore certain portions of State school aid reductions; permits certain school districts to exceed tax levy growth limitation in 2024-2025 school year; appropriates $71.4 million.
CURRENT VERSION OF TEXT
Substitute as adopted by the Assembly Appropriations Committee.
An Act concerning school district finances and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. As used in this section:
"Adjusted tax levy" means the amount raised by property taxation for the purposes of the school district, excluding any debt service payment.
"Aid grant" means a Stabilized School Budget Aid grant awarded to an eligible school district under the program.
"Commissioner" means the Commissioner of Education.
"Eligible school district" means a school district for which the State aid differential, as defined in section 3 of P.L.2018, c.67 (C.18A:7F-67), is positive in the 2024-2025 school year and that is subject to a State school aid reduction in the 2024-2025 school year pursuant to the provisions of P.L.2018, c.67 (C.18A:7F-67 et al.).
"Prebudget year" means the school fiscal year preceding the year in which the school budget is implemented.
"Program" means the Stabilized School Budget Aid Grant Program established pursuant to this section.
"SDA district" means an SDA district as defined in section 3 of P.L.2000, c.72 (C.18A:7G-3).
b. There is established in the Department of Education a Stabilized School Budget Aid Grant Program. The purpose of the program shall be to provide aid grants to eligible school districts equal to two-thirds of the amount of the school districts' State school aid reductions, as calculated pursuant to section 3 of P.L.2018, c.67 (C.18A:7F-67) and proposed in the State aid notices for the 2024-2025 school year distributed to school districts in March 2024. The Commissioner of Education shall provide an aid grant to an eligible school district, upon verification that the school district is subject to a State school aid reduction in the 2024-2025 school year. In addition, the commissioner shall ensure that a school district receiving an aid grant does not reduce the total number of school district employees compared to the total number of school district employees in the prebudget year, except that a school district may reduce the total number of school district employees if the commissioner approves the reduction in the district's resulting final budget submitted pursuant to subsection d. of this section. The commissioner may approve a reduction in a district's total number of school district employees if the reduction is being made due to an anticipated decline in enrollment in the 2024-2025 school year compared to the prebudget year.
c. (1) Notwithstanding the provisions of section 3 and section 4 of P.L.2007, c.62 (C.18A:7F-38 and C.18A:7F-39) or any other law or regulation to the contrary, for the 2024-2025 school year, the commissioner shall authorize an eligible school district to adopt a budget that includes increases in the adjusted tax levy that exceed the tax levy growth limitation set forth in section 3 of P.L.2007, c.62 (C.18A:7F-38) without submitting to the voters or the board of school estimate, as applicable, the proposal or proposals that are required pursuant to section 4 of P.L.2007, c.62 (C.18A:7F-39). The maximum allowable increase to the adjusted tax levy pursuant to this paragraph shall be equal to one-third of the amount of the school district's State school aid reduction, as calculated pursuant to section 3 of P.L.2018, c.67 (C.18A:7F-67) and as proposed in the State aid notice for the 2024-2025 school year distributed to school districts in March 2024; provided, however, that an eligible school district shall not increase its adjusted tax levy by more than 9.9 percent of the prebudget year adjusted tax levy. The district may request additional increases to its adjusted tax levy that are authorized pursuant to section 2 of this act.
(2) The ability to request increases to the adjusted tax levy pursuant to this section shall not apply to an SDA district. This section shall not be construed as prohibiting an SDA district from increasing its adjusted tax levy pursuant to section 3 and section 4 of P.L.2007, c.62 (C.18A:7F-38 and C.18A:7F-39).
d. An eligible school district that receives an aid grant pursuant to this section and is authorized to increase its adjusted tax levy pursuant to paragraph (1) of subsection c. of this section shall submit a resulting final budget to the commissioner within a timeframe, and in a manner and form, to be determined by the commissioner. In the event that the school district has already certified its adjusted tax levy prior to receiving authorization to increase its adjusted tax levy, the secretary of the board of education shall re-certify to the county board of taxation the sum or sums to be raised for the school year. The amount re-certified shall be included in the taxes assessed, levied, and collected in the municipality or municipalities comprising the district.
2. a. As used in this section:
"Adjusted tax levy" means the amount raised by property taxation for the purposes of the school district, excluding any debt service payment.
"Commissioner" means the Commissioner of Education.
"Prebudget year" means the school fiscal year preceding the year in which the school budget is implemented.
"Prebudget year adjusted tax levy" means the amount raised by property taxation in the prebudget year for the purposes of the school district, excluding any debt service payment.
"SDA district" means an SDA district as defined in section 3 of P.L.2000, c.72 (C.18A:7G-3).
b. Notwithstanding the provisions of section 3 and section 4 of P.L.2007, c.62 (C.18A:7F-38 and C.18A:7F-39) or any other law or regulation to the contrary, for the 2024-2025 school year, the Commissioner of Education shall authorize a school district, which experienced a net reduction in State school aid during the 2020-2021 through 2024-2025 school years, to adopt a budget that includes increases in its adjusted tax levy that exceed the tax levy growth limitation set forth in section 3 of P.L.2007, c.62 (C.18A:7F-38) without submitting to the voters or the board of school estimate, as applicable, the proposal or proposals that are required pursuant to section 4 of P.L.2007, c.62 (C.18A:7F-39). The commissioner shall approve increases requested pursuant to this section, upon verification that the school district experienced a net reduction in State school aid during the 2020-2021 through 2024-2025 school years and that the increase is within the limits established pursuant to subsection c. of this section.
c. (1) In the case of a school district that receives an aid grant under the Stabilized School Budget Aid Grant Program established pursuant to section 1 of this act, the increases requested pursuant to this section shall be no more than the amount of the school district's net reduction in State school aid during the 2020-2021 through 2023-2024 school years. The increases requested pursuant to this section shall be in addition to any increases requested by the school district pursuant to paragraph (1) of subsection c. of section 1 of this act; provided, however, that the school district shall not increase its adjusted tax levy by more than 9.9 percent of the prebudget year adjusted tax levy.
(2) In the case of a school district that does not receive an aid grant under the Stabilized School Budget Aid Grant Program established pursuant to section 1 of this act, the requested increases shall be no more than the amount of the school district's net reduction in State school aid during the 2020-2021 through 2024-2025 school years; provided, however, that the school district shall not increase its adjusted tax levy by more than 9.9 percent of the prebudget year adjusted tax levy.
d. The ability to request increases to the adjusted tax levy pursuant to this section shall not apply to an SDA district. This section shall not be construed as prohibiting an SDA district from increasing its adjusted tax levy pursuant to section 3 and section 4 of P.L.2007, c.62 (C.18A:7F-38 and C.18A:7F-39).
e. A school district that is approved for increases in its tax levy pursuant to this section shall submit a resulting final budget to the commissioner within a timeframe, and in a manner and form, to be determined by the commissioner. In the event that the school district has already certified its adjusted tax levy prior to approval, the secretary of the board of education shall re-certify to the county board of taxation the sum or sums to be raised for the school year. The amount re-certified shall be included in the taxes assessed, levied, and collected in the municipality or municipalities comprising the district.
3. There is appropriated from the Property Tax Relief Fund to the Department of Education the sum of $71,437,562 to effectuate the provisions of section 1 of this act.
4. This act shall take effect immediately.
