Bill Text: NJ A1039 | 2010-2011 | Regular Session | Introduced


Bill Title: Implements the economic indicator recommendations of the Commissioner of Education on Abbott district designation.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced - Dead) 2010-01-12 - Introduced, Referred to Assembly Education Committee [A1039 Detail]

Download: New_Jersey-2010-A1039-Introduced.html

ASSEMBLY, No. 1039

STATE OF NEW JERSEY

214th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION

 


 

Sponsored by:

Assemblyman  JOSEPH R. MALONE, III

District 30 (Burlington, Mercer, Monmouth and Ocean)

Assemblyman  RONALD S. DANCER

District 30 (Burlington, Mercer, Monmouth and Ocean)

 

Co-Sponsored by:

Assemblywoman McHose, Assemblymen O'Scanlon and Amodeo

 

 

 

 

SYNOPSIS

     Implements the economic indicator recommendations of the Commissioner of Education on Abbott district designation.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

  


An Act concerning Abbott district designation, amending P.L.1996, c.138 and P.L.2000, c.72 and supplementing Title 18A of the New Jersey Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.  (New section) The Legislature finds and declares that:

     a.  As directed under the provisions of subsection k. of section 4 of the "Educational Facilities Construction and Financing Act," P.L.2000, c.72 (C.18A:7G-4), the Commissioner of Education released a report dated June 15, 2005 detailing the commissioner's recommendations for the criteria and process for the designation of Abbott school districts;

     b.  While that report clearly delineated the economic indicators recommended to be applied in the determination of Abbott district status, the report provided only general recommendations on the educational adequacy standards to be applied as opposed to providing specific benchmarks to be utilized in that determination;

     c.  While the commissioner's report was clear in its statement that districts with durable and concentrated poverty should continue to be designated as Abbott districts even in those instances in which significant educational improvement has occurred in order to ensure that the improved educational process has been institutionalized, it was less direct in its recommendations in regard to those districts which do not meet the economic indicators of poverty included in the report;

     d.  It must be noted, however, that the commissioner did indicate that the Abbott remedies are intended to improve student achievement through the application of resources and support that the community, because of its economic conditions, is unable to provide;

     e.  In light of the economic underpinnings of the Abbott remedies as noted by the commissioner, it would be inherently unfair to continue Abbott district status for those districts which no longer exhibit the concentrated poverty reflected in the economic criteria recommended to the Legislature and which in fact have a socioeconomic status similar to many non-Abbott districts in the State;

     f.  To require the State to continue to finance the local educational costs of school districts in which the socioeconomic indicators suggest that the community has the ability to support those costs, reduces the ability of the State to adequately support the educational efforts of all districts in the State;

     g. In those instances in which former Abbott districts have improved economically but continue to face challenges educationally, those districts will continue to be supported by the State through its monitoring system which provides for technical and targeted assistance and intervention in those districts which are not operating at a high level of performance;

     h.  It is therefore appropriate that the Legislature move forward to implement the recommendations of the commissioner concerning the economic ability of Abbott district communities to support their schools, while at the same time providing the commissioner with the opportunity to provide to the Legislature specific educational adequacy benchmarks that might influence Abbott district designation.

 

     2.  Section 3 of P.L.1996, c.138 (C.18A:7F-3) is amended to read as follows:

     3.  As used in this act, unless the context clearly requires a different meaning:

     "Abbott district" means [one of the 28 urban districts in district factor groups A and B specifically identified in the appendix to Raymond Abbott, et al. v. Fred G. Burke, et al. decided by the New Jersey Supreme Court on June 5, 1990 (119 N.J.287, 394) or any other district classified as a special needs district under the "Quality Education Act of 1990," P.L.1990, c.52 (C.18A:7D-1 et al.), or ] Asbury Park City School District, Bridgeton City School District, Camden City School District, City of Orange Township School District, East Orange School District, Elizabeth City School District, Irvington Township School District,  Keansburg Boro School District, New Brunswick City School District, Newark City School District, Passaic City School District, Paterson City School District, Penns Grove-Carney's Point Regional School District, Perth Amboy City School District, Plainfield City School District, Pleasantville City School District, Salem City School District, Trenton City School District, Union City School District, and West New York Town School District;

     "Bilingual education pupil" means a pupil enrolled in a program of bilingual education or in an English as a second language program approved by the State Board of Education;

     "Budgeted local share" means the sum of designated general fund balance, miscellaneous revenues estimated consistent with GAAP, and that portion of the district's local tax levy contained in the T&E budget certified for taxation purposes;

     "Capital outlay" means capital outlay as defined in GAAP;

     "Commissioner" means the Commissioner of Education;

     "Concentration of low-income pupils" shall be based on prebudget year pupil data and means, for a school district or a county vocational school district, the number of low-income pupils among those counted in modified district enrollment, divided by modified district enrollment.  For a school, it means the number of low-income pupils recorded in the registers at that school, divided by the total number of pupils recorded in the school's registers;

     "CPI" means the average annual increase, expressed as a decimal, in the consumer price index for the New York City and Philadelphia areas during the fiscal year preceding the prebudget year as reported by the United States Department of Labor;

     "County special services school district" means any entity established pursuant to article 8 of chapter 46 of Title 18A of the New Jersey Statutes;

     "County vocational school district" means any entity established pursuant to article 3 of chapter 54 of Title 18A of the New Jersey Statutes;

     "County vocational school, special education services pupil" means a pupil who is attending a county vocational school and who is receiving specific services pursuant to chapter 46 of Title 18A of the New Jersey Statutes;

     "Debt service" means and includes payments of principal and interest upon school bonds and other obligations issued to finance the purchase or construction of school facilities, additions to school facilities, or the reconstruction, remodeling, alteration, modernization, renovation or repair of school facilities, including furnishings, equipment, architect fees and the costs of issuance of such obligations and shall include payments of principal and interest upon bonds heretofore issued to fund or refund such obligations, and upon municipal bonds and other obligations which the commissioner approves as having been issued for such purposes.  Debt service pursuant to the provisions of P.L.1978, c.74 (C.18A:58-33.22 et seq.), P.L.1971, c.10 (C.18A:58-33.6 et seq.) and P.L.1968, c.177 (C.18A:58-33.2 et seq.) is excluded;

     "District factor group A district" means a school district, other than an Abbott district or a school district in which the equalized valuation per pupil is more than twice the average Statewide equalized valuation per pupil and in which resident enrollment exceeds 2,000 pupils, which based on the 1990 federal census data is included within the Department of Education's district factor group A;

     "District income" for the 1997-98 school year means the aggregate income of the residents of the taxing district or taxing districts, based upon data provided by the Bureau of the Census in the United States Department of Commerce for 1989.  Beginning with the 1998-99 school year and thereafter, district income means the aggregate income of the residents of the taxing district or taxing districts, based upon data provided by the Division of Taxation in the New Jersey Department of the Treasury and contained on the New Jersey State Income Tax forms for the calendar year ending prior to the prebudget year.  The commissioner may supplement data contained on the State Income Tax forms with data available from other State or federal agencies in order to better correlate the data to that collected on the federal census.  With respect to regional districts and their constituent districts, however, the district income as described above shall be allocated among the regional and constituent districts in proportion to the number of pupils resident in each of them;

     "Estimated minimum equalized tax rate" for a school district means the district's required local share divided by its equalized valuation; for the State it means the sum of the required local shares of all school districts in the State, excluding county vocational and county special services school districts as defined pursuant to this section, divided by the sum of the equalized valuations for all the school districts in the State except those for which there is no required local share;

     "Equalized valuation" means the equalized valuation of the taxing district or taxing districts, as certified by the Director of the Division of Taxation on October 1, or subsequently revised by the tax court by January 15, of the prebudget year.  With respect to regional districts and their constituent districts, however, the equalized valuations as described above shall be allocated among the regional and constituent districts in proportion to the number of pupils resident in each of them. In the event that the equalized table certified by the director shall be revised by the tax court after January 15 of the prebudget year, the revised valuations shall be used in the recomputation of aid for an individual school district filing an appeal, but shall have no effect upon the calculation of the property value multiplier, Statewide equalized valuation per pupil, estimated minimum equalized tax rate for the State, or Statewide average equalized school tax rate;

     "GAAP" means the generally accepted accounting principles established by the Governmental Accounting Standards Board as prescribed by the State board pursuant to N.J.S.18A:4-14;

     "Household income" means income as defined in 7CFR 245.2 and 245.6 or any subsequent superseding federal law or regulation;

     "Lease purchase payment" means and includes payments of principal and interest for lease purchase agreements in excess of five years approved pursuant to subsection f. of N.J.S.18A:20-4.2 to finance the purchase or construction of school facilities, additions to school facilities, or the reconstruction, remodeling, alteration, modernization, renovation or repair of school facilities, including furnishings, equipment, architect fees and issuance costs.  Approved lease purchase agreements in excess of five years shall be accorded the same accounting treatment as school bonds;

     "Low-income pupils" means those pupils from households with a household income at or below the most recent federal poverty guidelines available on October 15 of the prebudget year multiplied by 1.30;

     "Minimum permissible T&E budget" means the sum of a district's core curriculum standards aid, and required local share calculated pursuant to sections 5, 14 and 15 of this act;

     "Modified district enrollment" means the number of pupils other than preschool pupils, evening school pupils, post-graduate pupils, and post-secondary vocational pupils who, on the last school day prior to October 16, are enrolled in the school district or county vocational school district; or are resident in the school district or county vocational school district and are:  (1) receiving home instruction, (2) enrolled in an approved private school for the handicapped, (3) enrolled in a regional day school, (4) enrolled in a county special services school district, (5) enrolled in an educational services commission including an alternative high school program operated by an educational services commission, (6) enrolled in a State college demonstration school, (7) enrolled in the Marie H. Katzenbach School for the Deaf, or (8) enrolled in an alternative high school program in a county vocational school. Modified district enrollment shall be based on the prebudget year count for the determination of concentration of low-income pupils, and shall be projected to the current year and adjusted pursuant to section 5 of this act when used in the calculation of aid;

     "Net budget" unless otherwise stated in this act, means the sum of the net T&E budget and the portion of the district's local levy that is above the district's maximum T&E budget;

     "Net T&E budget" means the sum of the T&E program budget, early childhood program aid, demonstrably effective program aid, instructional supplement aid, transportation aid, and categorical program aid received pursuant to sections 19 through 22, 28, and 29 of this act;

     "Prebudget year" means the school fiscal year preceding the year in which the school budget is implemented;

     "Prebudget year equalized tax rate" means the amount calculated by dividing the district's general fund levy for the prebudget year by its equalized valuation certified in the year prior to the prebudget year;

     "Prebudget year net budget" for the 1997-98 school year means the sum of the foundation aid, transition aid, transportation aid, special education aid, bilingual education aid, aid for at-risk pupils, technology aid, and county vocational program aid received by a school district or county vocational school district in the 1996-97 school year pursuant to P.L.1996, c.42, and the district's local levy for the general fund;

     "Report on the Cost of Providing a Thorough and Efficient Education" or "Report" means the report issued by the Governor pursuant to section 4 of this act;

     "Resident enrollment" means the number of pupils other than preschool pupils, post-graduate pupils, and post-secondary vocational pupils who, on the last school day prior to October 16 of the current school year, are residents of the district and are enrolled in:  (1) the public schools of the district, excluding evening schools, (2) another school district, other than a county vocational school district in the same county on a full-time basis, or a State college demonstration school or private school to which the district of residence pays tuition, or (3) a State facility in which they are placed by the district; or are residents of the district and are:  (1) receiving home instruction, or (2) in a shared-time vocational program and are regularly attending a school in the district and a county vocational school district. In addition, resident enrollment shall include the number of pupils who, on the last school day prior to October 16 of the prebudget year, are residents of the district and in a State facility in which they were placed by the State.  Pupils in a shared-time vocational program shall be counted on an equated full-time basis in accordance with procedures to be established by the commissioner.  Resident enrollment shall include regardless of nonresidence, the enrolled children of teaching staff members of the school district or county vocational school district who are permitted, by contract or local district policy, to enroll their children in the educational program of the school district or county vocational school district without payment of tuition.  Handicapped children between three and five years of age and receiving programs and services pursuant to N.J.S.18A:46-6 shall be included in the resident enrollment of the district;

     "School district" means any local or regional school district established pursuant to chapter 8 or chapter 13 of Title 18A of the New Jersey Statutes;

     "School enrollment" means the number of pupils other than preschool pupils, evening school pupils, post-graduate pupils, and post-secondary vocational pupils who, on the last school day prior to October 16 of the current school year, are recorded in the registers of the school;

     "Special education services pupils" means a pupil receiving specific services pursuant to chapter 46 of Title 18A of the New Jersey Statutes;

     "Spending growth limitation" means the annual rate of growth permitted in the net budget of a school district, county vocational school district or county special services school district as measured between the net budget of the prebudget year and the net budget of the budget year as calculated pursuant to subsection d. of section 5 of this act;

     "Stabilization aid growth limit" means 10% or the rate of growth in the district's projected resident enrollment over the prebudget year, whichever is greater.  For the 1997-98 school year, this means 8% or one-half the rate of growth in the district's projected resident enrollment and preschool enrollment between the October 1991 enrollment report as contained on the district's Application for State School Aid for 1992-93 and the 1997-98 school year, whichever is greater.  For the 1998-99 and 1999-2000 school years, this means the greatest of the following:  10%, one-half the district's rate of growth in projected resident enrollment and preschool enrollment over the October 1991 enrollment report as contained on the district's Application for State School Aid for 1992-93, or the district's projected rate of growth in resident enrollment over the prebudget year;

     "State facility" means a State developmental center; a State Division of Youth and Family Services' residential center; a State residential mental health center; a DHS Regional Day School; a State training school/Secure care facility; a State juvenile community program; a juvenile detention center or a boot camp under the supervisional authority of the Juvenile Justice Commission pursuant to P.L.1995, c.284 (C.52:17B-169 et seq.); or an institution operated by or under contract with the Department of Corrections or Human Services, or the Juvenile Justice Commission;

     "Statewide average equalized school tax rate" means the amount calculated by dividing the general fund tax levy for all school districts, which excludes county vocational school districts and county special services school districts as defined pursuant to this section, in the State for the prebudget year by the equalized valuations certified in the year prior to the prebudget year of all taxing districts in the State except taxing districts for which there are no school tax levies;

     "Statewide equalized valuation per pupil" means the equalized valuations of all taxing districts having resident enrollment in the State, divided by the resident enrollment for the State;

     "T&E amount" means the cost per elementary pupil of delivering the core curriculum content standards and extracurricular and cocurricular activities necessary for a thorough regular education under the assumptions of reasonableness and efficiency contained in the Report on the Cost of Providing a Thorough and Efficient Education;

     "T&E flexible amount" means the dollar amount which shall be applied to the T&E amount to determine the T&E range;

     "T&E program budget" means the sum of core curriculum standards aid, supplemental core curriculum standards aid, stabilization aid, designated general fund balance, miscellaneous local general fund revenue and that portion of the district's local levy that supports the district's T&E budget;

     "T&E range" means the range of regular education spending which shall be considered thorough and efficient.  The range shall be expressed in terms of T&E budget spending per elementary pupil, and shall be delineated by alternatively adding to and subtracting from the T&E amount the T&E flexible amount;

     "Total Statewide income" means the sum of the district incomes of all taxing districts in the State.

(cf:  P.L.2004, c.61, s.1)

     3.  Section 4 of P.L.2000, c.72 (C.18A:7G-4) is amended to read as follows:

     4.  a.  Beginning in the 1999-2000 school year and in every school year thereafter ending with a "0" or a "5", each district shall prepare and submit to the commissioner a long-range facilities plan that details the district's school facilities needs and the district's plan to address those needs for the ensuing five years.  The long-range facilities plan shall incorporate the facilities efficiency standards and shall be filed with the commissioner no later than December 15, 2000 and no later than October 1 of the other filing years for approval in accordance with those standards.  For those Abbott districts that have submitted long-range facilities plans to the commissioner prior to the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.), this subsection shall not be read to require an additional filing by October 1, 2000.

     b.  Notwithstanding any other law or regulation to the contrary, an application for a school facilities project pursuant to section 5 of this act shall not be approved unless the district has filed a long-range facilities plan that is consistent with the application and the plan has been approved by the commissioner; except that prior to October 1, 2000, the commissioner may approve an application if the project is necessary to protect the health or safety of occupants of the school facility, or is related to required early childhood education programs, or is related to a school facility in which the functional capacity is less than 90% of the facilities efficiency standards based on current school enrollment, or the district received bids on the school facilities project prior to the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.) and the district demonstrates that further delay will negatively affect the cost of the project.

     c.  An amendment to a long-range facilities plan may be submitted at any time to the commissioner for review and approval.

     d.  Each long-range facilities plan shall include a cohort survival methodology or other methodology approved by the commissioner, accompanied by a certification by a qualified demographer retained by the district that serves as the basis for identifying the capacity and program needs detailed in the long-range facilities plan.

     e. The long-range facilities plan shall include an educational adequacy inventory of all existing school facilities in the district, the identification of all deficiencies in the district's current inventory of school facilities, which includes the identification of those deficiencies that involve emergent health and safety concerns, and the district's proposed plan for future construction and renovation. The long-range facilities plan submissions shall conform to the guidelines, criteria and format prescribed by the commissioner.

     f.  Each district shall determine the number of "unhoused students" for the ensuing five-year period calculated pursuant to the provisions of section 8 of this act.

     g.  Each district shall submit the long-range facilities plan to the planning board of the municipality or municipalities in which the district is situate for the planning board's review and findings.

     h.  The commissioner shall develop, for the March 2002 Report on the Cost of Providing a Thorough and Efficient Education and for subsequent reports, facilities efficiency standards for elementary, middle, and high schools consistent with the core curriculum school delivery assumptions in the report and sufficient for the achievement of the core curriculum content standards, including the provision of required programs in Abbott districts and early childhood  education programs in the districts in which these programs are required by the State.  The area allowances per FTE student in each class of the district shall be derived from these facilities efficiency standards.

     The facilities efficiency standards developed by the commissioner shall not be construction design standards but rather shall represent the instructional spaces, specialized instructional areas, and administrative spaces that are determined by the commissioner to be educationally adequate to support the achievement of the core curriculum content standards including the provision of required programs in Abbott districts and early childhood education programs in the districts in which these programs are required by the State.  A district may design, at its discretion, the educational and other spaces to be included within the school facilities project.  The design of the project may eliminate spaces in the facilities efficiency standards, include spaces not in the facilities efficiency standards, or size spaces differently than in the facilities efficiency standards upon a demonstration of the adequacy of the school facilities project to deliver the core curriculum content standards pursuant to paragraph (2) of subsection g. of section 5 of this act.

     Within a reasonable period of time after the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.), the commissioner shall publish the facilities efficiency standards developed for the 2000-2001, 2001-2002, and 2002-2003 school years in the New Jersey Register. Within a reasonable period of time after 30 days after publication in the New Jersey Register, the commissioner shall file the facilities efficiency standards with the Office of Administrative Law and those standards shall become effective immediately upon filing with the Office of Administrative Law.  During the 30-day period the commissioner shall provide an opportunity for public comment on the proposed facilities efficiency standards.

     i.  Within 90 days of the commissioner's receipt of a long-range facilities plan for review, the commissioner shall determine whether the plan is fully and accurately completed and whether all information necessary for a decision on the plan has been filed by the district.  If the commissioner determines that the plan is complete, the commissioner shall promptly notify the district in writing and shall have 60 days from the date of that notification to determine whether to approve the plan or not.  If the commissioner determines that the plan is not complete, the commissioner shall notify the district in writing.  The district shall provide to the commissioner whatever information the commissioner determines is necessary to make the plan accurate and complete.  The district shall submit that information to the commissioner, and the commissioner shall have 60 days from the date of receipt of accurate and complete information to determine whether to approve the plan or not.

     j.  Notwithstanding any provision in subsection i. of this section, if at any time the number of long-range facilities plans filed by school districts with the commissioner and pending review exceeds 20% of the number of school districts in New Jersey, the commissioner may extend by 60 days the deadline for reviewing each plan pending at that time.

     k.  By March 1, 2002 and every five years thereafter, the commissioner shall recommend to the Legislature economic and educational adequacy criteria to be used in the designation of districts as Abbott districts and a list of the school districts which meet the criteria for designation.  The economic criteria may include, but not be limited to: the number of residents per 1,000 within the municipality or municipalities in which the district is situate who receive TANF; the district's equalized valuation per resident pupil as equalized valuation is defined in section 3 of P.L.1996, c.138 (C.18A:7F-3); the district's income per resident pupil as district income is defined in section 3 of P.L.1996, c.138 (C.18A:7F-3); the population per square mile of the municipality or municipalities in which the district is situate; and the municipal overburden of the municipality or municipalities in which the district is situate as that term is defined by the New Jersey Supreme Court in Abbott v. Burke.  The educational adequacy criteria may include, but need not be limited to, results of school district monitoring conducted pursuant to P.L.1975, c.212 (C.18A:7A-1 et seq.), variety of course offerings, teacher qualifications and experience, teacher-pupil ratios, student attendance, student drop out rates, ability of grade three students to read at grade level, and Statewide test scores.

     l. By July 1, 2001, the commissioner shall provide the Legislature with recommendations to address the circumstances of districts which are contiguous with two or more Abbott districts.  The recommendations shall address the issues of the financing of school facilities projects and the funding of the educational and other programs required within these districts as a result of their unique demographic situation.

     m.  By July 1, 2001, the commissioner shall study the Safe Schools Design Guidelines, prepared by the Florida Center for Community Design and Research, which address the issues of school safety and security through the design of school facilities. Based upon the commissioner's study, the commissioner shall issue recommendations to districts on the appropriateness of including the Safe Schools Design Guidelines in the design and construction of school facilities projects.

(cf:  P.L.2000, c.72, s.4)

 

     4.  (New section) a.  In the case of a school district which was designated as an Abbott district prior to the effective date of P.L.    , c.     (C.    ) (now pending before the Legislature as this bill), but is not designated as an Abbott district upon the effective date of that act,  the Commissioner of Education, in consultation with the district, shall develop a plan that provides for the phase-out of the Abbott remedies over a four-year period.  The plan shall ensure an orderly transition in the financial and educational operations of the district.  The plan shall provide that the district shall continue to receive 100% State support  of the final eligible costs of any school facilities project that was in the design or construction phase prior to the effective date of P.L.    , c.    (C.    ) (now pending before the Legislature as this bill).

     A school district may make application to the commissioner for an adjustment to the phase-out plan and the commissioner may provide such an adjustment if he determines that the plan will impose a particular financial or educational hardship on the district.

     b.  In the case of a school district which was not designated as an Abbott district prior to the effective date of  P.L.   c.    (C.    ) (now pending before the Legislature as this bill), but is designated as an Abbott district upon the effective date of that act, the commissioner, in consultation with the district, shall develop a plan that provides for the phase-in of the Abbott remedies.  In the first school year following Abbott district designation, the district shall receive the State funds required to undertake a comprehensive needs assessment and to develop an operational plan for each school in the district and for the district's central office.

     The commissioner shall approve the operational plan developed pursuant to this subsection and shall provide Abbott remedy funding as required to implement the plan.

 

     5.  (New section) a.  Within 90 days of the effective date of P.L.     , c.    (C.    ) (now pending before the Legislature as this bill) and prior to the phase-out or phase-in of Abbott remedies as required pursuant to section 4 of that act, the commissioner shall provide to the Senate and General Assembly Education Committees the specific educational adequacy benchmarks the commissioner recommends as applicable to determination of Abbott district status and a list of those districts which meet both the economic and educational adequacy criteria.  Upon receipt of those recommendations, the committees shall report to the President of the Senate and the Speaker of the General Assembly the conclusions of the committees on whether further revision of Abbott districts as designated pursuant to section 3 of P.L.1996, c.138 (C.18A:7F-3) is advisable.

     b.  Nothing in this section shall be construed to limit the authority of the commissioner to provide to the Legislature such information or recommendations on Abbott district designation that the commissioner deems advisable prior to date established pursuant to subsection a. of this section.

 

     6.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill implements the recommendations contained in the June 15, 2005 report of the Commissioner of  Education to the Legislature concerning the economic indicators that should be applied to the designation of Abbott school districts. Despite the fact that the commissioner's report stated that Abbott designation should rest on a two-part test, concentrated poverty and educational adequacy, the report failed to include specific benchmarks of educational adequacy.  The commissioner did note in the report, however, that the Abbott remedies were intended to improve student achievement through the application of resources and the support that the community, because of its economic conditions, is unable to provide.  It is appropriate therefore, that the Legislature move ahead to revise the designation of Abbott districts so that the Abbott remedies are directed at those districts whose socio-economic status clearly demonstrates the community's inability to support its schools.  Such action is warranted in light of the fact that all non-Abbott communities within the State are required to finance the local share of educational expenditure; and the continuation of State support of the local share in Abbott districts which no longer meet the economic criteria  reduces the State's ability to equitably support all other districts.

     Under the bill's provisions, the definition of Abbott district is amended to list those districts that meet the economic criteria contained in the commissioner's report.  This will result in a total of 20 Abbott districts as opposed to the current total of 31.  The bill directs the commissioner, in consultation with a school district that loses its Abbott designation, to devise a plan that provides for a phase-out of the Abbott remedies over a four-year period.  The plan must ensure an orderly transition in the financial and educational operations of the district. A district will have an opportunity to make application to the commissioner for an adjustment to the phase-out plan based upon a particular financial or educational hardship.

     In the case of any newly-designated Abbott districts, the bill directs the commissioner, in consultation with the school district, to develop a plan for the phase-in of the Abbott remedies.  In the first school year following Abbott district designation, the district will receive the State funds required to undertake a comprehensive needs assessment and to develop an operational plan for each school in the district and for the district's central office.

     The bill also provides the commissioner with another opportunity to provide to the Legislature the actual benchmarks of educational adequacy that the commissioner feels should be applicable to Abbott district designation.  Within 90 days of the bill's effective date and prior to the phase-out or phase-in of the Abbott remedies, the commissioner is directed to provide to the Senate and General Assembly Education Committees the specific educational adequacy benchmarks.  Upon receipt of the benchmarks, the committees are to report to the President of the Senate and the Speaker of the General Assembly the committees' conclusions on whether further revisions of the designated Abbott districts is advisable.

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