Bill Text: NJ S3525 | 2018-2019 | Regular Session | Introduced
Bill Title: Revises schedule of State school aid reductions for school districts.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-04 - Introduced in the Senate, Referred to Senate Education Committee [S3525 Detail]
Download: New_Jersey-2018-S3525-Introduced.html
Sponsored by:
Senator VIN GOPAL
District 11 (Monmouth)
SYNOPSIS
Revises schedule of State school aid reductions for school districts.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the allocation of State aid to school districts and amending P.L.2018, c.67.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 4 of P.L.2018, c.67 (C.18A:7F-68) is amended to read as follows:
4. a. Notwithstanding the provisions of P.L.2007, c.260 (C.18A:7F-43 et al.) or any other law to the contrary, in the 2019-2020 through 2024-2025 school years, a school district or county vocational school district in which the State aid differential calculated is negative shall receive State school aid in an amount equal to the sum of the district's State aid in the prior school year plus the district's proportionate share of the sum of any increase in State aid included in the annual appropriations act for that fiscal year and the total State aid reduction pursuant to subsection b. of this section based on the district's State aid differential as a percent of the Statewide total State aid differential among all school districts and county vocational school districts for which the State aid differential is negative. Any increase in State aid pursuant to this subsection shall first be allocated to equalization aid, followed by special education categorical aid, security categorical aid, and transportation aid, except that no category shall exceed the total amount as calculated in accordance with the provisions of sections 11, 13, 14, and 15 of P.L.2007, c.260 (C.18A:7F-53, C.18A:7F-55, C.18A:7F-56, and C.18A:7F-57), respectively.
b. Except as provided pursuant to subsection c. of this section, and notwithstanding the provisions of P.L.2007, c.260 (C.18A:7F-43 et al.) or any other law to the contrary, in the 2019-2020 through [2024-2025] 2027-2028 school years, a school district or county vocational school district in which the State aid differential is positive shall receive State school aid in an amount equal to the district's State aid in the prior school year minus a percent of the State aid differential according to the following schedule:
(1) 13 percent in the 2019-2020 school year;
(2) [23] 14 percent in the 2020-2021 school year;
(3) [37] 15 percent in the 2021-2022 school year;
(4) [55] 30 percent in the 2022-2023 school year;
(5) [76] 45 percent in the 2023-2024 school year; [and]
(6) [100] 60 percent in the 2024-2025 school year;
(7) 75 percent in the 2025-2026 school year;
(8) 90 percent in the 2026-2027 school year; and
(9) 100 percent in the 2027-2028 school year.
c. (1) An SDA district that is located in a municipality in which the equalized total tax rate is greater than the Statewide average equalized total tax rate for the most recent available calendar year and is spending below adequacy as calculated pursuant to section 1 of P.L.2018, c.67 (C.18A:7F-70) shall not be subject to a reduction in State aid pursuant to subsection b. of this section.
(2) An SDA district that is located in a municipality in which the equalized total tax rate is greater than the Statewide average equalized total tax rate for the most recent available calendar year and is spending above adequacy as calculated pursuant to section 1 of P.L.2018, c.67 (C.18A:7F-70) shall be subject to a reduction not to exceed the amount by which the district is spending above adequacy multiplied by the corresponding percentage included in subsection b. of this section.
(3) A school district, other than an SDA district, that is located in a municipality in which the equalized total tax rate is at least 10 percent greater than the Statewide average equalized total tax rate for the most recent available calendar year and is spending at least 10 percent below adequacy as calculated pursuant to section 1 of P.L.2018, c.67 (C.18A:7F-70) shall not be subject to a reduction in State aid pursuant to subsection b. of this section.
(4) A school district, other than an SDA district, in which: the budgetary cost per pupil, as reported in the Taxpayers' Guide to Education Spending for the most recent school year for which audited expenditure data are available, is less than the Statewide average budgetary cost per pupil; and the projected resident enrollment for the budget year is no less than 10,000 students and no greater than 12,000 students, shall not be subject to a reduction in State aid pursuant to subsection b. of this section.
d. Any decrease in State aid pursuant to subsection b. or c. of this section shall first be deducted from a school district's or county vocational school district's allotment of adjustment aid. Any additional reduction shall be deducted from the school district's or county vocational school district's allotment of non-SFRA aids, followed by equalization aid, special education categorical aid, security aid, and transportation aid.
e. Any remaining adjustment aid or non-SFRA aids shall be reallocated to other State aid categories in a manner to be determined by the commissioner.
(cf: P.L.2018, c.67, s.4)
2. This act shall take effect immediately.
STATEMENT
P.L.2018, c.67 stipulated that State aid to certain school districts would be reduced in accordance with a schedule detailed in the law. Specifically, the law defines a school district's "State aid differential" as the difference between the amount of State aid received, not including preschool education, educational adequacy, and school choice aids, and the sum of equalization, special education, security, and transportation aids that the district would receive under the corresponding sections of the "School Funding Reform Act of 2008," P.L.2007, c.260. If a school district's State aid differential is positive, the differential is reduced annually by the following percentages: 13% in the 2019-2020 school year, 23% in the 2020-2021 school year, 37% in the 2021-2022 school year, 55% in the 2022-2023 school year, 76% in the 2023-2024 school year, and 100% in the 2024-2025 school year. Under the law, the total amount by which State aid is reduced among these districts would be reallocated to school districts in which the State aid differential is negative.
This bill makes two changes to the law. First, it modifies the schedule under which the State aid reductions would occur. Under the bill, school districts' State aid differential would be eliminated in the 2027-2028 school year, rather than the 2024-2025 school year.
Second, the bill would exempt a school district with a positive State aid differential from the State aid reduction if the school district: 1) has a per pupil expenditure less than the State average; and 2) has a projected resident enrollment for the budget year that is no less than 10,000 students and no more than 12,000 students. Based on currently available data, the provision would eliminate a projected State aid reduction for the Freehold Regional School District.
