Bill Text: NJ S120 | 2022-2023 | Regular Session | Introduced


Bill Title: Provides that school districts spending below adequacy will not be subject to certain State school aid reductions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-01-11 - Introduced in the Senate, Referred to Senate Education Committee [S120 Detail]

Download: New_Jersey-2022-S120-Introduced.html

SENATE, No. 120

STATE OF NEW JERSEY

220th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION

 


 

Sponsored by:

Senator  JAMES W. HOLZAPFEL

District 10 (Ocean)

 

 

 

 

SYNOPSIS

     Provides that school districts spending below adequacy will not be subject to certain State school aid reductions.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  


An Act concerning State school aid 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 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 percent in the 2020-2021 school year;

     (3)   37 percent in the 2021-2022 school year;

     (4)   55 percent in the 2022-2023 school year;

     (5)   76 percent in the 2023-2024 school year; and

     (6) 100 percent in the 2024-2025 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)] (2)   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] 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.

     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 (C.18A:7F-67 et al.), commonly referred to as "S-2," stipulates that State school aid to certain school districts will be reduced in accordance with a schedule detailed in the law.  Under section 4 of P.L.2018, c.67 (C.18A:7F-68), two groups of school districts are not subject to State aid reductions: 1) SDA (former Abbott) districts that spend below adequacy and are located in a municipality in which the equalized total tax rate exceeds the Statewide average; and 2) non-SDA districts that spend below adequacy by at least 10 percent and are located in a municipality in which the equalized total tax rate exceeds the Statewide average by more than 10 percent. 

     This bill provides that any school district that is spending below adequacy will not be subject to State school aid reductions under P.L.2018, c.67.

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