Bill Text: NJ S2632 | 2022-2023 | Regular Session | Introduced


Bill Title: Establishes Stabilization Aid for certain school districts experiencing reductions in State school aid or other budgetary imbalances; establishes Education Rescue Grants for certain school districts experiencing reductions in teaching staff.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2022-05-16 - Introduced in the Senate, Referred to Senate Education Committee [S2632 Detail]

Download: New_Jersey-2022-S2632-Introduced.html

SENATE, No. 2632

STATE OF NEW JERSEY

220th LEGISLATURE

 

INTRODUCED MAY 16, 2022

 


 

Sponsored by:

Senator  SAMUEL D. THOMPSON

District 12 (Burlington, Middlesex, Monmouth and Ocean)

 

 

 

 

SYNOPSIS

     Establishes Stabilization Aid for certain school districts experiencing reductions in State school aid or other budgetary imbalances; establishes Education Rescue Grants for certain school districts experiencing reductions in teaching staff.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning State school aid for certain school districts and supplementing P.L.2007, c.260 (C.18A:7F-43 et al.).

 

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

 

     1.    In addition to any other State school aid provided pursuant to the provisions of P.L.2007, c.260 (C.18A:7F-43 et al.), a school district may receive Stabilization Aid if the school district experiences a reduction in State school aid compared to the prior school year or otherwise confronts a structural budgetary imbalance. To receive Stabilization Aid, a school district shall submit an application to the Commissioner of Education, in a manner and form to be prescribed by the commissioner except that an application submitted pursuant to this section shall include a written plan explaining how the district intends to fund operations in future school years in which the district does not receive Stabilization Aid or similar supplemental State school aid.

 

     2.    In addition to any other State school aid provided pursuant to P.L.2007, c.260 (C.18A:7F-43 et al.), a school district may receive an Education Rescue Grant to support the costs of rehiring or retraining a teaching staff member, or if such a person is not able to be rehired, the costs of hiring a similarly qualified teaching staff member. The proceeds of each grant shall be dedicated to the salaries, not including the fringe benefits or other non-monetary compensation, payable to the teaching staff members by the recipient school district. To be eligible for an Education Rescue Grant, a school district shall have experienced a reduction in teaching staff compared to the most recent prior school year. A school district seeking an Education Rescue Grant shall submit an application to the Commissioner of Education, which application shall be in a manner and form to be prescribed by the commissioner.

 

     3.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill codifies in the permanent statutes two categories of State school aid, namely Stabilization Aid and Education Rescue Grants. These categories of aid would be provided to certain school districts in addition to aid provided under P.L.2007, c.260, also referred to as the "School Funding Reform Act of 2008" or the SFRA. The SFRA was amended by P.L.2018, c.67, which established a mechanism for allocating State school aid from the 2019-2020 through 2024-2025 school years. Since its enactment, P.L.2018, c.67 has resulted in often steep reductions in State aid to certain school districts across New Jersey, including several in the sponsor's legislative district. 

     Under the bill, Stabilization Aid may be available to a school district that experiences a reduction in State school aid compared to the prior school year or that otherwise confronts a structural budgetary imbalance. To receive Stabilization Aid, a school district is required to submit an application to the Commissioner of Education. The bill requires that the application include a written plan explaining how the district intends to fund operations in future school years in which the district does not receive Stabilization Aid or similar supplemental State school aid.

     The bill also authorizes the distribution of Education Rescue Grants. A school district may receive an Education Rescue Grant to support the costs of rehiring or retraining a teaching staff member, or if such a person is not able to be rehired, the costs of hiring a similarly qualified teaching staff member. The proceeds of each grant would be dedicated to the salaries, not including the fringe benefits or other non-monetary compensation, payable to the teaching staff members by the recipient school district. To be eligible for an Education Rescue Grant, a school district is required to have experienced a reduction in teaching staff compared to the most recent prior school year. A school district seeking an Education Rescue Grant is required to submit an application to the Commissioner of Education.

     It is the belief of the sponsor that this bill is an appropriate measure to ease the future financial impact of P.L.2018, c.67 on school districts until such time as the State school funding formula can be reformed.  

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