Bill Text: NJ A1463 | 2012-2013 | Regular Session | Introduced
Bill Title: Requires nonpublic secondary schools and independent institutions of higher education to reimburse school districts for educational costs of students residing in tax-exempt housing and adjusts recipient districts' tax levy growth limit.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2012-01-10 - Introduced, Referred to Assembly Education Committee [A1463 Detail]
Download: New_Jersey-2012-A1463-Introduced.html
STATE OF NEW JERSEY
215th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2012 SESSION
Sponsored by:
Assemblyman REED GUSCIORA
District 15 (Hunterdon and Mercer)
Assemblywoman BONNIE WATSON COLEMAN
District 15 (Hunterdon and Mercer)
SYNOPSIS
Requires nonpublic secondary schools and independent institutions of higher education to reimburse school districts for educational costs of students residing in tax-exempt housing and adjusts recipient districts' tax levy growth limit.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act concerning the educational costs of students residing on certain tax-exempt property, supplementing Title 18A of the New Jersey Statutes and amending P.L.2007, c.62.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) a. Notwithstanding any provision of law or regulation to the contrary, a nonpublic school located in this State which offers an educational program for students in grades 9 through 12 or in any one or more of those grade levels, shall annually make a payment for any student who resides in a tax-exempt facility located on property owned by the nonpublic school and is who enrolled in a public school district or a charter school. The amount of the payment shall equal the district's per pupil general fund local levy amount for the budget year which shall be calculated by dividing the general fund local levy by the resident enrollment.
b. Annually, by November 1 of each budget year, the board of education shall notify the nonpublic school of the number of resident students enrolled in the school district or the charter school who reside in a tax-exempt facility owned by the nonpublic school on the last school day prior to October 16 of the current school year. The district shall also notify the nonpublic school of the per pupil general fund local levy amount for the budget year and the total payment owed to the district by the nonpublic school. The nonpublic school shall forward payment to the board of education within 60 days of receipt of the notice of the required payment.
2. (New section) a. Notwithstanding any provision of law or regulation to the contrary, an independent institution of higher education located in this State shall annually make a payment for any student who resides in a tax-exempt facility located on property owned by the independent institution of higher education and who is enrolled in a public school district or a charter school. The amount of the payment shall equal the district's per pupil general fund local levy amount for the budget year which shall be calculated by dividing the general fund local levy by the resident enrollment.
b. Annually, by November 1 of each budget year, the board of education shall notify the independent institution of higher education of the number of resident students enrolled in the school district or the charter school who reside in a tax-exempt facility owned by the independent institution of higher education on the last school day prior to October 16 of the current school year. The district shall also notify the independent institution of higher education of the per pupil general fund local levy amount for the budget year and the total payment owed to the district by the independent institution of higher education. The independent institution of higher education shall forward payment to the board of education within 60 days of receipt of the notice of the required payment.
3. Section 3 of P.L.2007, c.62 (C.18A:7F-38) is amended to read as follows:
3. a. Notwithstanding the provisions of any other law to the contrary, a school district shall not adopt a budget pursuant to sections 5 and 6 of P.L.1996, c.138 (C.18A:7F-5 and 18A:7F-6) with an increase in its adjusted tax levy that exceeds, except as provided in subsection e. of section 4 of P.L.2007, c.62 (C.18A:7F-39), the tax levy growth limitation calculated as follows: the sum of the prebudget year adjusted tax levy and the adjustment for increases in enrollment multiplied by 2.0 percent reduced by the difference in the amount of any payments received from a nonpublic secondary school or an independent institution of higher education pursuant to sections 1 and 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) in the prebudget year and the amount of any such payment received in the year prior to the prebudget year, and adjustments for an increase in health care costs, and increases in amounts for certain normal and accrued liability pension contributions set forth in sections 1 and 2 of P.L.2009, c.19 amending section 24 of P.L.1954, c.84 (C.43:15A-24) and section 15 of P.L.1944, c.255 (C.43:16A-15) for the year set forth in those sections.
b. (1) The allowable adjustment for increases in enrollment authorized pursuant to subsection a. of this section shall equal the per pupil prebudget year adjusted tax levy multiplied by EP, where EP equals the sum of:
(a) 0.50 for each unit of weighted resident enrollment that constitutes an increase from the prebudget year over 1%, but not more than 2.5%;
(b) 0.75 for each unit of weighted resident enrollment that constitutes an increase from the prebudget year over 2.5%, but not more than 4%; and
(c) 1.00 for each unit of weighted resident enrollment that constitutes an increase from the prebudget year over 4%.
(2) A school district may request approval from the commissioner to calculate EP equal to 1.00 for any increase in weighted resident enrollment if it can demonstrate that the calculation pursuant to paragraph (1) of this subsection would result in an average class size that exceeds 10% above the facilities efficiency standards established pursuant to P.L.2000, c.72 (C.18A:7G-1 et al.).
c. (Deleted by amendment, P.L.2010, c.44)
d. (1) The allowable adjustment for increases in health care costs authorized pursuant to subsection a. of this section shall equal that portion of the actual increase in total health care costs for the budget year, less any withdrawals from the current expense emergency reserve account for increases in total health care costs, that exceeds 2.0 percent of the total health care costs in the prebudget year, but that is not in excess of the product of the total health care costs in the prebudget year multiplied by the average percentage increase of the State Health Benefits Program, P.L.1961, c.49 (C.52:14-17.25 et seq.), as annually determined by the Division of Pensions and Benefits in the Department of the Treasury.
(2) The allowable adjustment for increases in the amount of normal and accrued liability pension contributions authorized pursuant to subsection a. of this section shall equal that portion of the actual increase in total normal and accrued liability pension contributions for the budget year that exceeds 2.0 percent of the total normal and accrued liability pension contributions in the prebudget year.
e. (Deleted by amendment, P.L.2010, c.44)
f. The adjusted tax levy shall be increased or decreased accordingly whenever the responsibility and associated cost of a school district activity is transferred to another school district or governmental entity.
(cf: P.L.2010, c.44, s.4)
4. This act shall take effect immediately and shall first apply to the 2011-2012 school year.
STATEMENT
This bill would require a nonpublic school which offers an educational program for students in grades 9 through 12, or in any one or more of those grade levels, or an independent institution of higher education to annually make a payment for any student who resides in a tax-exempt facility located on property owned by the entity and is enrolled in a public school district or a charter school. The amount of the payment will equal the district's per pupil general fund local levy amount for the budget year.
Under the bill's provisions, annually by November 1 of the budget year, a board of education would notify the nonpublic school or independent college or university of the number of resident students enrolled in the school district or a charter school who reside in a tax-exempt facility owned by the entity, the per pupil general fund local levy amount, and the total payment owed to the district. The payment must be forwarded to the board of education within 60 days of receipt of the notice of the required payment. The recipient district's tax levy growth cap for the subsequent school year will be reduced by the amount of the total payment received under this bill, thus ensuring that the additional revenue is used to reduce property taxes.
