Bill Text: NJ S3058 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes inflationary State school aid growth limit; permits certain school districts to apply for Necessary Stabilization Aid.
Spectrum: Bipartisan Bill
Status: (Introduced) 2024-04-08 - Introduced in the Senate, Referred to Senate Education Committee [S3058 Detail]
Download: New_Jersey-2024-S3058-Introduced.html
Sponsored by:
Senator TROY SINGLETON
District 7 (Burlington)
Co-Sponsored by:
Senator Tiver
SYNOPSIS
Establishes inflationary State school aid growth limit; permits certain school districts to apply for Necessary Stabilization Aid.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning State school aid 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. a. (1) Notwithstanding the provisions of P.L.2007, c.260 (C.18A:7F-43 et al.) or of any other law, rule, or regulation to the contrary, the amount of State school aid provided to a school district shall be increased by no more than the inflationary State school aid growth limit when compared to the amount of State school aid provided in the prebudget year. The inflationary State school aid growth limit shall apply regardless of whether a school district is, pursuant to the provisions of P.L.2007, c.260 (C.18A:7F-43 et al.) or P.L.2018, c.67 (C.18A:7F-67 et al.) as applicable, to experience: an increase in State school aid that is greater than or less than the inflationary State school aid growth limit; a reduction in State school aid; or no change in State school aid pursuant to the applicable provisions of subsection c. of section 4 of P.L.2018, c.67 (C.18A:7F-68). The provisions of this section shall not apply to a county vocational school district receiving vocational expansion stabilization aid pursuant to section 5 of P.L.2018, c.67 (C.18A:7F-69).
(2) In the case of a school district other than a district factor group A school district, the inflationary State school aid growth limit shall be equal to the increase, expressed as a decimal, in the average annualized consumer price index for the New York City and Philadelphia areas over a 12-month period beginning October 1 of the year prior to the prebudget year and ending September 30 of the prebudget year. In the case of a district factor group A school district, the inflationary State school aid growth limit shall be equal to the inflationary State school aid growth limit for all other school districts plus 0.01.
b. (1) For the 2024-2025 school year, State school aid for the purposes of this section shall include equalization aid, special education categorical aid, security categorical aid, transportation aid, and adjustment aid calculated in accordance with the provisions of sections 11, 13, 14, 15, and 16 of P.L.2007, c.260 (C.18A:7F-53, C.18A:7F-55, C.18A:7F-56, C.18A:7F-57, and C.18A:7F-58).
(2) For the 2025-2026 school year and each school year thereafter, State school aid for the purposes of this section shall include equalization aid, special education categorical aid, security categorical aid, and transportation aid 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).
2. a. Beginning in the 2024-2025 school year, a qualifying school district may receive Necessary Stabilization Aid in an amount that shall not exceed the difference between:
(1) the amount of State school aid that the district would have otherwise received pursuant to the provisions of P.L.2007, c.260 (C.18A:7F-43 et al.) or P.L.2018, c.67 (C.18A:7F-67 et al.) as applicable, without consideration of the inflationary State school aid growth limit pursuant to section 1 of this act; and
(2) the amount of State school aid received with consideration of the inflationary State school aid growth limit.
b. A qualifying school district may only receive Necessary Stabilization Aid upon the approval of the Commissioner of Education. A qualifying school district shall submit an application to the commissioner in a manner and form to be prescribed by the commissioner, except that an application shall provide sufficient details to justify the awarding of aid pursuant to this section and include a written plan explaining how the district intends to use the aid that may be awarded to it.
c. As used in this section, "qualifying school district" means a school district that, pursuant to the provisions of P.L.2007, c.260 (C.18A:7F-43 et al.) or P.L.2018, c.67 (C.18A:7F-67 et al.) as applicable, would have received an increase in State school aid that is greater than the amount of State school aid the district receives with consideration of the inflationary State school aid growth limit, as calculated pursuant to section 1 of this act, when compared to State school aid received in the prebudget year.
3. This act shall take effect immediately.
STATEMENT
This bill establishes an inflationary State school aid growth limit, which is generally to be applied to all school districts. The bill also establishes a new category of State school aid called Necessary Stabilization Aid for school districts that receive a smaller increase in State school aid with the implementation of the inflationary State school aid growth limit.
Under the bill, the amount of State school aid provided to a school district is to be increased by no more than the inflationary State school aid growth limit when compared to the amount of State school aid provided in the prior school year. The inflationary State school aid growth limit would apply regardless of whether a school district is, under current law, to experience: an increase in State school aid that is greater than or less than the inflationary State school aid growth limit; a reduction in State school aid; or no change in State school aid under certain provisions of current law. The bill does not apply, however, to county vocational school districts receiving vocational expansion stabilization aid.
For most school districts, the inflationary State school aid growth limit is to be consistent with the increase in the consumer price index for the New York City and Philadelphia areas. The limit for district factor group A school districts is to be the same rate plus one percentage point.
The bill provides that a school district receiving a smaller increase in State school aid pursuant to the bill's provisions, when compared to current law, can apply to the Commissioner of Education for Necessary Stabilization Aid. A school district may receive an amount up to the difference between: 1) aid calculated pursuant to current law; and 2) aid calculated with consideration of the inflationary State school aid growth limit established by the bill. A qualifying school district is required to submit an application to the commissioner, which is to provide sufficient details justifying the awarding of aid and include a written plan explaining how the district intends to use the aid that may be awarded to it.
