New Jersey-2016-A1043-Introduced

An Act concerning school property tax reduction through bequests, legacies, and gifts, amending N.J.S.18A:22-8 and N.J.S.18A:22-11, and supplementing chapter 22A of Title 18A of the New Jersey Statutes.

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

1. N.J.S.18A:22-8 is amended to read as follows:

18A:22-8. The budget shall be prepared in such detail and upon such forms as shall be prescribed by the commissioner and to it shall be annexed a statement so itemized as to make the same readily understandable, in which shall be shown:

a. In tabular form there shall be set forth the following:

(1) The total expenditure for each item for the preceding school year, the amount appropriated for the current school year adjusted for transfers as of February 1 of the current school year, and the amount estimated to be necessary to be appropriated for the ensuing school year, indicated separately for each item as determined by the commissioner;

(2) The amount of the surplus account available at the beginning of the preceding school year, at the beginning of the current school year and the amount anticipated to be available for the ensuing school year;

(3) The amount of revenue available for budget purposes for the preceding school year, the amount available for the current school year as of February 1 of the current school year and the amount anticipated to be available for the ensuing school year in the following categories:

(a) Total to be raised by local property taxes

(b) Total State aid

(i) Core curriculum standards aid

(ii) Special education aid

(iii) Transportation aid

(iv) Early childhood program aid

(v) Demonstrably effective program aid

(vi) Instructional supplement aid

(vii) Supplemental core curriculum standards aid

(viii) Distance learning network aid

(ix) Bilingual aid

(x) Other (detailed at the discretion of the commissioner)

(i) Elementary and Secondary Education Act of 1965 (20 U.S.C. s.2701 et seq.)

(ii) Handicapped

(iii) Impact Aid

(iv) Vocational

(v) Other (detailed at the discretion of the commissioner)

(d) Other sources, including any funding made available pursuant to section 3 of P.L. , c. ( ) (pending before the Legislature as this bill) (detailed at the discretion of the commissioner).

b. (Deleted by amendment, P.L.1993, c.117).

c. In the event that the total expenditure for any item of appropriation is equal to $0.00 for: (1) the preceding school year, (2) the current school year, and (3) the amount estimated to be necessary to be appropriated for the ensuing school year, that item shall not be required to be published pursuant to N.J.S.18A:22-11.

d. The instruction function of the budget shall be divided at a minimum into elementary (K-5), middle school (6-8), and high school (9-12) cost centers, each of which shall be further divided by the core curriculum content areas. The commissioner shall phase in these requirements as soon as practicable.

(cf: P.L.1996, c.138, s.53)

2. N.J.S.18A:22-11 is amended to read as follows:

18A:22-11. The board of education shall cause notice of such public hearing and the statement annexed to the budget to be published at least once in at least one newspaper published in the district and if no newspaper be published therein, then in at least one newspaper circulating in said district not less than four days prior to the date fixed for such public hearing. The board of education shall also publish in such notice the amount of funding to be made available pursuant to section 3 of P.L. , c. ( ) (pending before the Legislature as this bill).

(cf: P.L.1995, c.278, s.41)

3. (New section) The board of education of any school district may adopt a resolution for the establishment of a school property tax relief trust fund. A board of education that has established a school property tax relief trust fund is authorized and empowered to accept bequests, legacies and gifts for deposit into the trust fund. The net proceeds of the trust fund shall be used for the exclusive purpose of reducing or offsetting the amount of local property taxes to be collected. The Commissioner of Education, in consultation with the Director of the Division of Investment in the Department of the Treasury, shall promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L. 1968, c.410 (C.52:14B-1 et seq.), necessary for the establishment of any trust fund as provided for in this section. The counsel, advice, and assistance of the Division of Investment in the Department of the Treasury shall be available to any board of education for the purpose of establishing and maintaining a school property tax relief trust fund, including the investment and conversion of trust assets. The board of education shall select a trustee by a majority vote of its membership, who shall not be a board member or an employee of the school district. The trustee shall serve as the fiduciary agent and may be compensated for managing the trust fund within an annual limitation set forth by regulation. The conditions set forth in the trust fund shall clearly state the manner in which local property taxes will be reduced or offset. The trustee shall notify the board secretary of the amount of funding being made available in any given school year, as determined by the conditions set forth in the trust document, and shall remit such funding to the local tax collector or tax collectors in the same school year. The local tax collector, upon receiving payment from the trustee, shall credit the trustee's payment by deducting the payment from the total property tax levy for the school year. The secretary of the board of education shall have the responsibility of certifying to the proper taxing officials the amount of funding made available for a given school year as determined by the conditions set forth in the trust fund for the purpose of reducing or offsetting the amount to be collected in local property taxes. The establishment of a trust fund pursuant to this section shall not be construed in anyway to limit the school district's ability to secure State aid.

4. This act shall take effect immediately.

STATEMENT

This bill authorizes the board of education of any school district to establish a school property tax relief trust fund by resolution. Any trust fund established pursuant to this bill must be used solely for the purpose of reducing or offsetting the amount of property taxes to be collected by the municipalities comprising the school district. The board of education by a majority vote must select a trustee to serve as the fiduciary agent of the trust fund. The trustee has the responsibility of remitting to the tax collector the amount of funding being made available for any school year for the purpose of reducing the amount to be collected in local property taxes. The Division of Investment in the Department of the Treasury will provide advice, counsel, and any assistance to any school board in establishing a school property tax relief trust fund.