Bill Text: NJ A880 | 2016-2017 | Regular Session | Introduced
Bill Title: Requires State to make charter school payments for initial year of charter school's operation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2016-01-27 - Introduced, Referred to Assembly Education Committee [A880 Detail]
Download: New_Jersey-2016-A880-Introduced.html
STATE OF NEW JERSEY
217th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2016 SESSION
Sponsored by:
Assemblywoman ELIZABETH MAHER MUOIO
District 15 (Hunterdon and Mercer)
SYNOPSIS
Requires State to make charter school payments for initial year of charter school's operation.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning certain charter school payments and amending P.L.1995, c.426.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 12 of P.L.1995, c.426 (C.18A:36A-12) is amended to read as follows:
12. a. (Deleted by amendment, P.L.2007, c.260).
b. (1) The school district of residence shall pay directly to the charter school for each student enrolled in the charter school who resides in the district an amount equal to 90% of the sum of the budget year equalization aid per pupil and the prebudget year general fund tax levy per pupil inflated by the CPI rate most recent to the calculation. In addition, the school district of residence shall pay directly to the charter school the security categorical aid attributable to the student and a percentage of the district's special education categorical aid equal to the percentage of the district's special education students enrolled in the charter school and, if applicable, 100% of preschool education aid. The district of residence shall also pay directly to the charter school any federal funds attributable to the student.
(2) Notwithstanding the provisions of paragraph (1) of this subsection to the contrary, in the initial year of a charter school's operation, the State shall make the payments required pursuant to that paragraph. The State shall make the required payments directly to the charter school.
In the three subsequent school years, the resident school district shall pay directly to the charter school 100% of the payments required for the school year pursuant to paragraph (1) of this subsection and shall reimburse the State for one-third of the amount of the payments made by the State pursuant to this paragraph. The commissioner shall deduct from the State aid payable to the resident district an amount equal to the repayment amount required to be made to the State in that school year. If, for any school district, the amount to be deducted pursuant to this paragraph is greater than the State aid payable to the district, the district shall pay to the Department of Education the difference between the amount to be deducted and the State aid payable to the district.
c. (Deleted by amendment, P.L.2007, c.260).
d. Notwithstanding the provisions of subsection b. of this section, in the case of a student who was not included in the district's projected resident enrollment for the school year, the State shall pay 100% of the amount required pursuant to subsection b. of this section for the first year of the student's enrollment in the charter school.
e. The State shall make payments required pursuant to subsection d. of this section directly to the charter school.
(cf: P.L.2007, c.260, s.58)
2. This act shall take effect immediately and shall first be applicable to the school year beginning on July 1 next following enactment.
STATEMENT
This bill provides that in the initial year of a charter school's operation, the State will make the charter school payments on behalf of a student's resident school district. The State will make the required payments directly to the charter school. In the three subsequent school years, the resident school district will make the payments required for that school year directly to the charter school, and will also reimburse the State for one-third of the amount that the State paid on the district's behalf in the initial year of the charter school's operation.
The purpose of this bill is to protect a resident school district from the fiscal problems that may occur when a new charter school opens. In light of the fact that student enrollment can be difficult to project in that initial year, some resident school districts have found themselves in the difficult position of having to set aside funds or increase tax levy much more than proves to be necessary. Having the State make the payments in the initial year of charter school operation will enable school districts to plan fiscally based on actual student interest in charter school enrollment.
