Bill Text: NJ A915 | 2014-2015 | Regular Session | Introduced
Bill Title: Provides that certain districts are not penalized in the calculation of State debt service aid for school facilities projects in which bonds were authorized but not issued prior to effective date of P.L.2008, c.39.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-01-16 - Introduced, Referred to Assembly Financial Institutions and Insurance Committee [A915 Detail]
Download: New_Jersey-2014-A915-Introduced.html
STATE OF NEW JERSEY
216th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2014 SESSION
Sponsored by:
Assemblyman CHRIS A. BROWN
District 2 (Atlantic)
SYNOPSIS
Provides that certain districts are not penalized in the calculation of State debt service aid for school facilities projects in which bonds were authorized but not issued prior to effective date of P.L.2008, c.39.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning the calculation of State debt service aid for school facilities projects in certain school districts and amending P.L.2000, c.72.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 9 of P.L.2000, c.72 (C.18A:7G-9) is amended to read as follows:
9. a. State debt service aid for capital investment in school facilities for a district other than an SDA district which elects not to finance the project under section 15 of P.L.2000, c.72 (C.18A:7G-15), shall be distributed upon a determination of preliminary eligible costs by the commissioner, according to the following formula:
Aid is the sum of A for each issuance of school bonds issued for a school facilities project approved by the commissioner after the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.)
where
A = B x AC/P x DAP x M, with AC/P =1
whenever AC/P would otherwise yield a number greater than one, and where:
B is the district's debt service for the individual issuance for the fiscal year;
AC is the preliminary eligible costs determined pursuant to section 7 of P.L.2000, c.72 (C.18A:7G-7);
P is the principal of the individual issuance plus any other funding sources approved for the school facilities project;
DAP is the district's district aid percentage as defined pursuant to section 3 of P.L.2000, c.72 (C.18A:7G-3) and where DAP shall not be less than 40%; and
M is a factor representing the degree to which a district has fulfilled maintenance requirements for a school facilities project determined pursuant to subsection b. of this section.
For county special services school districts, DAP shall be that of the county vocational school district in the same county.
b. The maintenance factor (M) shall be 1.0 except when one of the following conditions applies, in which case the maintenance factor shall be as specified:
(1) Effective ten years from the date of the enactment of P.L.2000, c.72 (C.18A:7G-1 et al.), the maintenance factor for aid for reconstruction, remodeling, alteration, modernization, renovation or repair, or for an addition to a school facility, shall be zero for all school facilities projects for which the district fails to demonstrate over the ten years preceding issuance a net investment in maintenance of the related school facility of at least 2% of the replacement cost of the school facility, determined pursuant to subsection b. of section 7 of P.L.2000, c.72 (C.18A:7G-7) using the area cost allowance of the year ten years preceding the year in which the school bonds are issued.
(2) For new construction, additions, and school facilities aided under subsection b. of section 7 of P.L.2000, c.72 (C.18A:7G-7) supported by financing issued for projects approved by the commissioner after the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.), beginning in the fourth year after occupancy of the school facility, the maintenance factor shall be reduced according to the following schedule for all school facilities projects for which the district fails to demonstrate in the prior fiscal year an investment in maintenance of the related school facility of at least two-tenths of 1% of the replacement cost of the school facility, determined pursuant to subsection b. of section 7 of P.L.2000, c.72 (C.18A:7G-7).
Maintenance Percentage Maintenance Factor (M)
.199% - .151% 75%
.150% - .100% 50%
Less than .100% Zero
(3) Within one year of the enactment of P.L.2000, c.72 (C.18A:7G-1 et al.), the commissioner shall promulgate rules requiring districts to develop a long-range maintenance plan and specifying the expenditures that qualify as an appropriate investment in maintenance for the purposes of this subsection.
c. Any district which obtained approval from the commissioner since September 1, 1998 and prior to the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.) of the educational specifications for a school facilities project or obtained approval from the Department of Community Affairs or the appropriately licensed municipal code official since September 1, 1998 of the final construction plans and specifications, and the district has issued debt, may elect to have the final eligible costs of the project determined pursuant to section 5 of P.L.2000, c.72 (C.18A:7G-5) and to receive debt service aid under this section or under section 10 of P.L.2000, c.72 (C.18A:7G-10).
Any district which received approval from the commissioner for a school facilities project at any time prior to the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.), and has not issued debt, other than short term notes, may submit an application pursuant to section 5 of P.L.2000, c.72 (C.18A:7G-5) to have the final eligible costs of the project determined pursuant to that section and to have the New Jersey Economic Development Authority construct the project; or, at its discretion, the district may choose to receive debt service aid under this section or under section 10 of P.L.2000, c.72 (C.18A:7G-10) or to receive a grant under section 15 of P.L.2000, c.72 (C.18A:7G-15).
For the purposes of this subsection, the "issuance of debt" shall include lease purchase agreements in excess of five years.
d. For school bonds issued for a school facilities project after the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.) and prior to the effective date of P.L.2008, c.39 (C.18A:7G-14.1 et al.), State debt service aid shall be calculated in accordance with the provisions of this section as the same read before the effective date of P.L.2008, c.39 (C.18A:7G-14.1 et al.).
e. In any district in which school bonds for a school facilities project were authorized but not issued prior to the effective date of P.L.2008, c.39 (C.18A:7G-14.1 et al.), State debt service aid shall be calculated in accordance with the provisions of this section as the same read before the effective date of P.L.2008, c.39 (C.18A:7G-14.1 et al.).
(cf: P.L.2008, c.39, s.3)
2. This act shall take effect immediately.
STATEMENT
Under the provisions of the "Educational Facilities Construction and Financing Act," as originally enacted, the State's share of a district's school facilities project was calculated using the product of the district's district aid percentage and 1.15, with a minimum State share of 40%.
P.L.2008, c.39 (C.18A:7G-14.1 et al.) eliminated the provision of the school construction law that increased a school district's district aid percentage by 15% for the purposes of the calculation of the State share of a school facilities project. This bill will ensure that districts in which school bonds had been authorized but not issued prior to the effective date of P.L.2008, c.39, will receive State debt service aid as it would have been calculated prior to the effective date of P.L.2008, c.39. These districts will therefore be entitled to receive State debt serve aid on these bonds equal to 115% of their district aid percentage rather than 100% of their district aid percentage.
