Bill Text: NJ S3861 | 2022-2023 | Regular Session | Introduced
Bill Title: Establishes New Jersey Property Tax Relief and Education Empowerment Program to provide both property tax relief to citizens and educational grants to certain students enrolled in nonpublic schools.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-05-15 - Introduced in the Senate, Referred to Senate Education Committee [S3861 Detail]
Download: New_Jersey-2022-S3861-Introduced.html
Sponsored by:
Senator EDWARD DURR
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Establishes New Jersey Property Tax Relief and Education Empowerment Program to provide both property tax relief to citizens and educational grants to certain students enrolled in nonpublic schools.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing the New Jersey Property Tax Relief and Education Empowerment Program and supplementing Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "New Jersey Property Tax Relief and Education Empowerment Act."
2. As used in this act:
"Department" means the Department of Education.
"Education empowerment grant" means a grant from a resident school district which is provided directly to a participating nonpublic school on behalf of an eligible student through the direction of the eligible student's parent or guardian. The education empowerment grant shall equal the lesser of the participating nonpublic school's per pupil cost to educate and fees or 50 percent of the resident school district's annual spending per pupil prorated based upon the number of days remaining in the school year. The education empowerment grant is the entitlement of the eligible student under the supervision of the eligible student's parent or guardian and not the entitlement or subsidy of any participating nonpublic school. A participating nonpublic school may not refund, rebate, or share a student's education empowerment grant with the eligible student's parent or guardian or with the eligible student in any manner. An eligible student's education empowerment grant may only be used for educational purposes. Upon the transfer of a student from the resident school district to a nonpublic school, the resident school district shall manage the average annual spending per student as follows: one half of the amount of the annual spending per pupil, or less depending on the amount of the nonpublic school yearly per pupil cost to educate and fees, shall be maintained in the school district budget for allocation to the education empowerment grant; and of the remaining portion of the amount of the annual spending per pupil, the amount derived from State aid shall be dedicated to the purposes of the "Homestead Property Tax Credit Act," P.L.1990, c.61 (C.54:4-8.57 et seq.), with the amount collected within each school district to be disbursed by the State to all eligible recipients residing within that school district, and the amount derived from local property taxes shall be deducted from the school district's budget in the subsequent school year. The reduction realized in the school district's budget shall be utilized by the local municipalities to lower the local school tax burden in the subsequent school year.
"Eligible student" means a student: from a household with an income that does not exceed 3.70 times the official federal poverty threshold for a family of four for the calendar year preceding the school year for which the education empowerment grant is initially distributed; who was not enrolled in a nonpublic school in the school year preceding the school year for which the education empowerment grant is initially distributed; who attended a public school for at least 100 school days in the school year preceding the school year for which the education empowerment grant is initially distributed; who is not classified as eligible for special education programs and services pursuant to chapter 46 of Title 18A of the New Jersey Statutes; and who is a New Jersey resident and eligible to enroll in the resident school district in a grade kindergarten through 12.
"Household income" means income as defined for the purposes of determining eligibility for a free or reduced price lunch pursuant to the National School Lunch Program.
"Participating nonpublic school" means a nonpublic school that provides education to students in grades kindergarten through 12, or any combination thereof, and complies with the program requirements.
"Program" means the New Jersey Property Tax Relief and Education Empowerment Program established pursuant to section 3 of this act.
"Resident school district" means the school district in which the eligible student resides.
3. a. The Department of Education shall oversee the implementation and execution of the New Jersey Property Tax Relief and Education Empowerment Program.
b. All nonpublic schools intending to participate in the program shall file an application with the Department of Education. The application shall include an agreement on the part of the nonpublic school to maintain safety and educational standards.
c. Under the program, an eligible student shall qualify for an education empowerment grant to enroll in a participating nonpublic school provided that:
(1) the parent or guardian has applied to a participating nonpublic school for the admission of the eligible student; and
(2) the nonpublic school has accepted the eligible student for admission and provided the parent or guardian of the student with an official notice of acceptance.
d. The parent or guardian of an eligible student who wishes to participate in the program shall apply to a participating nonpublic school either in person or on-line. The participating nonpublic school may be located anywhere in the State. The participating nonpublic school application process shall require the parent or guardian to provide it with verifiable information to support the student's eligibility for an education empowerment grant. If the participating nonpublic school accepts the eligible student, it shall issue an official acceptance notice to the parent or guardian of the eligible student which shall include the amount of the annual per pupil cost to educate and fees and the expected education empowerment grant under the program. If the participating nonpublic school rejects the application, a reason for rejecting the student shall be provided by the nonpublic school.
e. The parent or guardian of an eligible student who is accepted for admission to a participating nonpublic school shall apply to the resident school district for the education empowerment grant and provide the following: the official acceptance notice from the participating nonpublic school; and information to support the student's eligibility for the education empowerment grant. The resident school district shall immediately assign a school district employee to process the application for an education empowerment grant. The school district employee shall contact the parent or guardian to verify the information to support the student's eligibility for the education empowerment grant. Upon the verification of the information, the resident school district shall disburse the funds for the education empowerment grant to the participating nonpublic school. Disbursement of the funds shall be made to the participating nonpublic school within 10 business days of the first day of the student's attendance at the nonpublic school.
4. a. The resident school district shall provide public notice of the number of eligible students from the district participating in the program no later than September 15 of each school year.
b. The portion of the amount of the annual spending per pupil derived from State aid which is required to be allocated to the purposes of the "Homestead Property Tax Credit Act," P.L.1990, c.61 (C.54:4-8.57 et seq.), shall be used for no other purpose than to increase funding for the homestead benefit program. The increased funding for the homestead benefit program shall be applied to increase that tax credit benefit on a dollar-for-dollar basis and on a localized basis. The contribution to the homestead benefit program as a result of the provisions of this act shall be transparent and shall be itemized in the local tax bill. The portion of the amount of the annual spending per pupil derived from local property taxes which is required to be used reduce the school district budget shall be reflected in the school district budget in the subsequent school year. The savings shall be returned to the residents and businesses in the municipality or municipalities in which the school district is located through a reduction in their school tax rate.
c. The savings identified in subsection b. of this section shall be reflected as a separate line item in the school budget and individual tax bills.
5. A student shall remain
eligible for an education empowerment grant unless the student enrolls in a
public school, graduates from high school, no longer resides in the State, or
reaches the age of 21, whichever occurs first.
6. The parent or guardian of an eligible student receiving an education empowerment grant may at any time remove the student from the participating nonpublic school. In the event that a parent or guardian transfers the student to another participating nonpublic school, the amount of the education empowerment grant shall be prorated between the participating nonpublic schools according to the period of attendance at each nonpublic school.
7. a. A resident school district shall annually provide notification of the availability of the program to the parents and guardians of students enrolled in the district.
b. In the event that a participating nonpublic school admits an eligible student, the resident school district shall provide the participating nonpublic school with a copy of the student's records.
c. The resident school district shall provide transportation to and from the participating nonpublic school in accordance within the provisions of N.J.S.18A:39-1, to eligible students participating in the program.
8. a. To be eligible to participate in the program, a nonpublic school shall be located in the State, and the chief school administrator of the nonpublic school shall apply to the department and demonstrate that the nonpublic school:
(1) complies with all applicable health and safety codes;
(2) does not discriminate in admissions on the basis of race, color, national origin, or religion;
(3) does not teach or advocate any type of domestic subversion, including the violent overthrow of the government of the United States; and
(4) requires criminal background checks on school employees in accordance with procedures established pursuant to P.L.1989, c.229 (C.18A:6-4.13 et seq.).
b. To be eligible to participate in the program, the nonpublic school shall also demonstrate its financial viability as follows:
(1) the nonpublic school shall provide the department with a financial information report completed by a certified public accountant that complies with the standards adopted by the State Board of Education pursuant to section 11 of this act. The scope of the report shall be limited to those records that the department determines to be necessary to make grant payments to the school; and
(2) the certified public accountant certifies that the report is free of material misstatements.
c. Except as otherwise provided pursuant to the provisions of this act, the department may not regulate the education programs of a participating nonpublic school. The establishment of the program and the participation of nonpublic schools in the program shall not be construed to impose additional regulatory requirements on a nonpublic school beyond those reasonably necessary to enforce the provisions of this act. A participating nonpublic school shall be provided with maximum flexibility in providing for the educational needs of students participating in the program.
d. The department shall list the participating nonpublic schools on the department's Internet website and update the list on the first Monday of each month. The list shall include the address and contact information for each participating nonpublic school, including the Internet website of the school. A participating nonpublic school shall notify the department in writing if it ceases operation or determines to end its participation in the program.
9. In order to ensure academic accountability, a participating nonpublic school shall report on a regular basis to the parent or guardian of an eligible student on the student's academic progress.
10. The department may bar a nonpublic school from participating in the program if the department determines that the nonpublic school has failed to meet the eligibility requirements or has not met its educational responsibilities to eligible students or their parents or guardians. In the event that the department determines that a nonpublic school is no longer permitted to participate in the program, the department shall immediately notify the parents or guardians of the eligible students enrolled in the nonpublic school.
11. The State Board of Education shall adopt rules and regulations necessary for the implementation of the provisions of this act in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), including but not limited to:
a. the eligibility and participation of nonpublic schools, including timelines that maximize the participation of students and nonpublic schools; and
b. the calculation and distribution of education empowerment grants to eligible students.
12. This act shall take effect in the second full school year after the date of enactment.
STATEMENT
This bill directs the Department of Education to oversee the implementation and execution of the New Jersey Property Tax Relief and Education Empowerment Program. Under the program, an eligible student will qualify for an education empowerment grant to enroll in a participating nonpublic school. The grant will equal the lesser of the participating nonpublic school's per pupil cost to educate and fees or 50 percent of the annual spending per pupil of the district in which the eligible student resides. To be eligible, the student must be from a household with an income that does not exceed 3.70 times the federal poverty threshold for a family of four for the school year preceding the school year for which the education empowerment grant is initially distributed. In addition the student must be eligible for enrollment in the resident school district in grades kindergarten through 12, must not be classified as eligible for special education programs and services pursuant to chapter 46 of Title 18A of the New Jersey Statutes, must not have been enrolled in a nonpublic school in the school year preceding the school year for which the education empowerment grant is initially distributed, and must have attended a public school for at least 100 days in the school year preceding the school year for which the education empowerment grant is initially distributed.
A parent of a student who is accepted for admission to a participating nonpublic school must apply to the school district in which the student resides for the grant. Upon verification of certain information, the district will disburse the grant amount directly to the participating nonpublic school.
Savings generated from the program must be applied to property tax relief within the resident school district in the form of a reduced local school tax burden and a dollar-for-dollar increase in the homestead benefit program.
A nonpublic school that wishes to participate in the program must apply to the department and demonstrate that it:
· complies with all applicable health and safety codes;
· does not discriminate in admissions on the basis of race, color, national origin, or religion;
· does not teach or advocate any type of domestic subversion; and
· requires criminal background checks on school employees.
In order to participate in the program, a nonpublic school must also demonstrate its financial viability by providing the department a financial information report completed by a certified public accountant who must also certify that the report is free of material misstatements.
The bill stipulates that the amount of any reduction in school district budgets as a result of the bill's implementation must be used exclusively and for no other purpose than the reduction of the school tax levy portion of the property tax burden on individual taxpayers and business entities.
