Bill Text: NJ S954 | 2014-2015 | Regular Session | Introduced
Bill Title: Modifies school funding law to incorporate recommendations of DOE's Education Funding Report and Educational Adequacy Report.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-01-27 - Introduced in the Senate, Referred to Senate Education Committee [S954 Detail]
Download: New_Jersey-2014-S954-Introduced.html
Sponsored by:
Senator JENNIFER BECK
District 11 (Monmouth)
SYNOPSIS
Modifies school funding law to incorporate recommendations of DOE's Education Funding Report and Educational Adequacy Report.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the provision of State school aid and amending P.L.2007, c.260.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.2007, c.260 (C.18A:7F-45) is amended to read as follows:
3. As used in this act and P.L.1996, c.138, unless the context clearly requires a different meaning:
"At-risk pupils" means those resident pupils from households with a household income at or below the most recent federal poverty guidelines available on October 15 of the prebudget year multiplied by 1.85;
"Base per pupil amount" means the cost per elementary pupil of delivering the core curriculum content standards and extracurricular and cocurricular activities necessary for a thorough and efficient education;
"Bilingual education pupil" means a resident pupil enrolled in a program of bilingual education or in an English as a second language program approved by the State Board of Education;
"Budgeted local share" means the district's local tax levy contained in the budget certified for taxation purposes;
"Capital outlay" means capital outlay as defined in GAAP;
"Combination pupil" means a resident pupil who is both an at-risk pupil and a bilingual education pupil;
"Commissioner" means the Commissioner of Education;
"Concentration of at-risk pupils" shall be based on prebudget year pupil data and means, for a school district or a county vocational school district, the number of at-risk pupils among those counted in resident enrollment, divided by resident enrollment;
"County special services school district" means any entity established pursuant to article 8 of chapter 46 of Title 18A of the New Jersey Statutes;
"County vocational school district" means any entity established pursuant to article 3 of chapter 54 of Title 18A of the New Jersey Statutes;
"CPI" means the increase, expressed as a decimal, in the average annualized consumer price index for the New York City and Philadelphia areas in the fiscal year preceding the prebudget year relative to the previous fiscal year as reported by the United States Department of Labor;
"Debt service" means payments of principal and interest upon school bonds and other obligations issued to finance the purchase or construction of school facilities, additions to school facilities, or the reconstruction, remodeling, alteration, modernization, renovation or repair of school facilities, including furnishings, equipment, architect fees, and the costs of issuance of such obligations and shall include payments of principal and interest upon bonds heretofore issued to fund or refund such obligations, and upon municipal bonds and other obligations which the commissioner approves as having been issued for such purposes;
"District attendance adjustment rate" means the lesser of 100% or the sum of the district's average daily attendance rate for the three most recent school years, as reported in the School Register Summary, and four percentage points;
"District income" means the aggregate income of the residents of the taxing district or taxing districts, based upon data provided by the Division of Taxation in the New Jersey Department of the Treasury and contained on the New Jersey State Income Tax forms for the calendar year ending two years prior to the prebudget year. The commissioner may supplement data contained on the State Income Tax forms with data available from other State or federal agencies in order to better correlate the data to that collected on the federal census. With respect to regional districts and their constituent districts, however, the district income as described above shall be allocated among the regional and constituent districts in proportion to the number of pupils resident in each of them;
"Equalized valuation" means the equalized valuation of the taxing district or taxing districts, as certified by the Director of the Division of Taxation on October 1, or subsequently revised by the tax court by January 15, of the prebudget year. With respect to regional districts and their constituent districts, however, the equalized valuations as described above shall be allocated among the regional and constituent districts in proportion to the number of pupils resident in each of them. In the event that the equalized table certified by the director shall be revised by the tax court after January 15 of the prebudget year, the revised valuations shall be used in the recomputation of aid for an individual school district filing an appeal, but shall have no effect upon the calculation of the property value rate, Statewide average equalized school tax rate, or Statewide equalized total tax rate;
"Full-day preschool" means a preschool day consisting of a six-hour comprehensive educational program in accordance with the district's kindergarten through grade 12 school calendar;
"GAAP" means the generally accepted accounting principles established by the Governmental Accounting Standards Board as prescribed by the State board pursuant to N.J.S.18A:4-14;
"General special education services pupil" means a pupil receiving specific services pursuant to chapter 46 of Title 18A of the New Jersey Statutes;
"Geographic cost adjustment" means an adjustment that reflects county differences in the cost of providing educational services that are outside the control of the district;
"Household income" means income as defined in 7 CFR ss.245.2 and 245.6 or any subsequent superseding federal law or regulation;
"Net budget" means the sum of the district's general fund tax levy, State aid received pursuant to the provisions of this act other than preschool education aid, miscellaneous revenue estimated pursuant to GAAP, and designated general fund balance;
"Prebudget year" means the school fiscal year preceding the year in which the school budget is implemented;
"Nonpreschool ECPA" means the amount of early childhood program aid, excluding prior year carry-forward amounts, included in a district's 2007-2008 school year budget certified for taxes that was allocated to grades K through 3;
"Report" means the Educational Adequacy Report issued by the commissioner pursuant to section 4 of this act;
"Resident enrollment" means the number of pupils other than preschool pupils, post-graduate pupils, and post-secondary vocational pupils who, on the last school day prior to October 16 of the current school year, are residents of the district and are enrolled in: (1) the public schools of the district, excluding evening schools, (2) another school district, other than a county vocational school district in the same county on a full-time basis, or a State college demonstration school or private school to which the district of residence pays tuition, or (3) a State facility in which they are placed by the district; or are residents of the district and are: (1) receiving home instruction, or (2) in a shared-time vocational program and are regularly attending a school in the district and a county vocational school district. In addition, resident enrollment shall include the number of pupils who, on the last school day prior to October 16 of the prebudget year, are residents of the district and in a State facility in which they were placed by the State. Pupils in a shared-time vocational program shall be counted on an equated full-time basis in accordance with procedures to be established by the commissioner. Resident enrollment shall include regardless of nonresidence, the enrolled children of teaching staff members of the school district or county vocational school district who are permitted, by contract or local district policy, to enroll their children in the educational program of the school district or county vocational school district without payment of tuition. Disabled children between three and five years of age and receiving programs and services pursuant to N.J.S.18A:46-6 shall be included in the resident enrollment of the district;
"School district" means any local or regional school district established pursuant to chapter 8 or chapter 13 of Title 18A of the New Jersey Statutes;
"State facility" means a State developmental center, a State Division of Youth and Family Services' residential center, a State residential mental health center, a Department of Children and Families Regional Day School, a State training school/secure care facility, a State juvenile community program, a juvenile detention center or a boot camp under the supervisional authority of the Juvenile Justice Commission pursuant to P.L.1995, c.284 (C.52:17B-169 et seq.), or an institution operated by or under contract with the Department of Corrections, Children and Families or Human Services, or the Juvenile Justice Commission;
"Statewide equalized school tax rate" means the amount calculated by dividing the general fund tax levy for all school districts, which excludes county vocational school districts and county special services school districts as defined pursuant to this section, in the State for the prebudget year by the equalized valuations certified in the year prior to the prebudget year of all taxing districts in the State except taxing districts for which there are not school tax levies;
"Tax levy growth limitation" means the permitted annual increase in the adjusted tax levy for a school district as calculated pursuant to sections 3 and 4 of P.L.2007, c.62 (C.18A:7F-38 and 18A:7F-39).
(cf: P.L.2010, c.44, s.6)
2. Section 8 of P.L.2007, c.260 (C.18A:7F-50) is amended to read as follows:
8. a. The weighted enrollment for each school district and county vocational school district shall be calculated as follows:
[WENR = (PW x PENR) + (EW x EENR) + (MW x MENR) + (HW x HENR)] WENR = DAAR x ((PW x PENR) + (EW x EENR) + (MW x MENR) + (HW x HENR))
where
DAAR is the district attendance adjustment rate;
PW is the applicable weight for kindergarten enrollment;
EW is the weight for elementary enrollment;
MW is the weight for middle school enrollment;
HW is the weight for high school enrollment;
PENR is the resident enrollment for kindergarten;
EENR is the resident enrollment for grades 1 - 5;
MENR is the resident enrollment for grades 6 - 8; and
HENR is the resident enrollment for grades 9 - 12.
For the purposes of this section, ungraded pupils shall be counted in their age-equivalent grade.
b. The base cost for each school district shall be calculated as follows:
BC = BPA x WENR; and
the base cost for each county vocational school district shall be calculated as follows:
BC = BPA x WENR x 1.31
where
BPA is the base per pupil amount; and
WENR is the weighted enrollment of the school district or county vocational school district.
(cf: P.L.2007, c.260, s.8)
3. Section 9 of P.L.2007, c.260 (C.18A:7F-51) is amended to read as follows:
9. a. The adequacy budget for each school district and county vocational school district shall be calculated as follows:
AB = (BC + AR Cost + LEP Cost + COMB Cost + SE Census) x GCA
where
BC is the district's or county vocational school district's base cost as calculated pursuant to section 8 of this act;
AR Cost is the cost of providing educational and other services for at-risk pupils as calculated pursuant to subsection b. of this section;
LEP Cost is the cost of providing educational and other services for bilingual education pupils as calculated pursuant to subsection c. of this section;
COMB Cost is the cost of providing educational and other services for pupils who are both at-risk and bilingual as calculated pursuant to subsection d. of this section;
SE Census is the cost of providing programs and services to general special education services pupils and speech-only pupils as calculated pursuant to subsection e. of this section; and
GCA is geographic cost adjustment.
The GCA shall be the geographic cost adjustment developed by the commissioner and revised by the commissioner every five years in accordance with receipt of census data.
b. AR Cost shall be calculated as follows:
AR Cost = BPA x ARWENR x DAAR x AR Weight
where
BPA is the base per pupil amount;
ARWENR is the weighted enrollment for at-risk pupils of the school district or county vocational school district, which shall not include combination pupils;
DAAR is the district attendance adjustment rate; and
AR Weight is the at-risk weight.
For the 2008-2009 through 2010-2011 school years the at-risk weight shall be as follows:
for a district in which the concentration of at-risk pupils is less than 20% of resident enrollment, the at-risk weight shall equal 0.47;
for a district in which the concentration of at-risk pupils is equal to 20% but less than 60% of resident enrollment, the at-risk weight shall equal the district's ((at-risk % - 0.20) x 0.25)) + 0.47; and
for a district in which the concentration of at-risk pupils is equal to or greater than 60% of resident enrollment, the at-risk weight shall equal 0.57.
For subsequent school years, the AR weight shall be established in the Educational Adequacy Report.
Notwithstanding the provisions of this subsection to the contrary, for the 2014-2015 school year, the at-risk weight shall be as follows:
for a district in which the concentration of at-risk pupils is less than 20% of the resident enrollment, the at-risk weight shall equal 0.42;
for a district in which the concentration of at-risk pupils is equal to 20% but less than 40% of the resident enrollment, the at-risk weight shall equal the district's ((at-risk % - 0.20) x 0.20)) + 0.42; and
for a district in which the concentration of at-risk pupils is equal to or greater than 40% of the resident enrollment, the at-risk weight shall equal 0.46.
c. LEP Cost shall be calculated as follows:
LEP Cost = BPA x LWENR x DAAR x LEP Weight
where
BPA is the base per pupil amount;
LWENR is the weighted enrollment for the bilingual education pupils of the school district or county vocational school district, which shall not include combination pupils;
DAAR is the district attendance adjustment rate; and
LEP Weight is the bilingual pupil weight.
For the 2008-2009 through 2010-2011 school years the LEP weight shall be 0.5. For subsequent school years, the LEP weight shall be established in the Educational Adequacy Report.
Notwithstanding the provisions of this subsection to the contrary, for 2014-2015 school year, the LEP weight shall be 0.46.
d. COMB Cost shall be calculated as follows:
COMB Cost = BPA x CWENR x DAAR x (AR Weight + COMB Weight)
where
BPA is the base per pupil amount;
CWENR is the weighted enrollment for pupils who are both at-risk and bilingual;
DAAR is the district attendance adjustment rate;
AR Weight is the at-risk weight; and
COMB Weight is the combination pupil weight.
For the 2008-2009 through 2010-2011 school years the COMB weight shall be 0.125. For subsequent school years, the COMB weight shall be established in the Educational Adequacy Report.
Notwithstanding the provisions of this subsection to the contrary, for the 2014-2015 school year, the COMB weight shall be 0.0981.
e. SE Census shall be calculated as follows:
SE Census = (RE x DAAR x SEACR x AEC x 2/3) + (RE x DAAR x SACR x SEC)
where
RE is the resident enrollment of the school district or county vocational school district;
DAAR is the district attendance adjustment rate;
SEACR is the State average classification rate for general special education services pupils;
AEC is the excess cost for general special education services pupils;
SACR is the State average classification rate for speech-only pupils; and
SEC is the excess cost for speech-only pupils.
For the 2008-2009 through 2010-2011 school years the State average classification rate shall be 14.69% for general special education services pupils and 1.897% for speech-only pupils. For subsequent school years, the State average classification rates shall be established in the Educational Adequacy Report.
For the 2008-2009 school year the excess cost shall be $10,898 for general special education services pupils and $1,082 for speech-only pupils. The excess cost amounts shall be adjusted by the CPI in the 2009-2010 and 2010-2011 school years as required pursuant to subsection b. of section 4 of this act. For subsequent school years, the excess cost amounts shall be established in the Educational Adequacy Report, with the amounts adjusted by the CPI for each of the two school years following the first school year to which the report is applicable.
(cf: P.L.2007, c.260. s.9)
4. Section 13 of P.L.2007, c.260 (C.18A:7F-55) is amended to read as follows:
13. a. Special education categorical aid for each school district and county vocational school district shall be calculated as follows:
SE = (RE x DAAR x SEACR x AEC x 1/3) x GCA
where
RE is the resident enrollment of the school district or county vocational school district;
DAAR is the district attendance adjustment rate;
SEACR is the State average classification rate for general special education services pupils;
AEC is the excess cost for general special education services pupils; and
GCA is the geographic cost adjustment as developed by the commissioner.
For the 2008-2009 school year the excess cost shall be $10,898 for general special education services pupils. The excess cost amount shall be adjusted by the CPI in the 2009-2010 and 2010-2011 school years as required pursuant to subsection b. of section 4 of this act. For subsequent school years, the excess cost amount shall be established in the Educational Adequacy Report, with the amount adjusted by the CPI for each of the two school years following the first school year to which the report is applicable.
b. Extraordinary special education aid for an individual classified pupil shall be available when the student is educated in a general education classroom, special education program, including but not limited to a resource program or special class program, or any combination of general education and special education programs and services, subject to the requirements and thresholds set forth in this section.
(1) In those instances in which a pupil is educated in an in-district public school program with non-disabled peers, whether run by a public school or by a private school for the disabled, and the cost of providing direct instructional and support services for an individual classified pupil exceeds $40,000, for those direct instructional and support services costs in excess of $40,000 a district shall receive extraordinary special education State aid equal to 90% of the amount of that excess in accordance with the provisions of paragraph (4) of this subsection.
(2) In those instances in which a pupil is educated in a separate public school program for students with disabilities and the cost of providing direct instructional and support services for an individual classified pupil exceeds $40,000, for those direct instructional and support services costs in excess of $40,000 a district shall receive extraordinary special education State aid equal to 75% of the amount of that excess in accordance with the provisions of paragraph (4) of this subsection.
(3) In those instances in which a pupil is educated in a separate private school for students with disabilities and the tuition for an individual classified pupil exceeds $55,000, for tuition costs in excess of $55,000 a district shall receive extraordinary special education State aid equal to 75% of the amount of that excess in accordance with the provisions of paragraph (4) of this subsection.
(4) Extraordinary special education State aid for an individual classified pupil shall be calculated as follows:
EA = ((ADC-$40,000) x .90) + (((AIC - $40,000) + (ASC - $55,000)) x .75)
where
ADC equals the district's actual cost for the direct instructional and support services in an in-district public school program as set forth in paragraph (1) of this subsection;
AIC equals the district's actual cost for direct instructional and support services in a separate public school program as set forth in paragraph (2) of this subsection; and
ASC equals the district's actual cost for tuition paid to a separate private school as set forth in paragraph (3) of this subsection.
(5) The receipt of extraordinary special education State aid for an individual classified pupil shall be conditioned upon a demonstration by the district that the pupil's Individualized Education Plan requires the provision of intensive services, pursuant to factors determined by the commissioner.
c. In order to receive funding pursuant to this section, a district shall file an application with the department that details the expenses incurred on behalf of the particular classified pupil for which the district is seeking reimbursement. Additional State aid awarded for extraordinary special education costs shall be recorded by the district as revenue in the current school year and paid to the district in the subsequent school year.
d. A school district may apply to the commissioner to receive emergency special education aid for any classified pupil who enrolls in the district prior to March of the budget year and who is in a placement with a cost in excess of $40,000 or $55,000, as applicable. The commissioner may debit from the student's former district of residence any special education aid which was paid to that district on behalf of the student.
e. The department shall review expenditures of federal and State special education aid by a district in every instance in which special education monitoring identifies a failure on the part of the district to provide services consistent with a pupil's Individualized Education Plan.
f. The commissioner shall commission an independent study of the special education census funding methodology to determine if adjustments in the special education funding formulas are needed in future years to address the variations in incidence of students with severe disabilities requiring high cost programs and to make recommendations for any such adjustments. The study and recommendations shall be completed by June 30, 2010.
g. A school district may apply to the commissioner to receive additional special education categorical aid if the district has an unusually high rate of low-incidence disabilities, such as autism, deaf/blindness, severe cognitive impairment, and medically fragile. In applying for the aid the district shall: demonstrate the impact of the unusually high rate of low-incidence disabilities on the school district budget and the extent to which the costs to the district are not sufficiently addressed through special education aid and extraordinary special education aid; and provide details of all special education expenditures, including details on the use of federal funds to support those expenditures.
(cf: P.L.2007, c.260, s.13)
5. Section 14 of P.L.2007, c.260 (C.18A:7F-56) is amended to read as follows:
14. Security categorical aid for each school district and county vocational school district shall be calculated as follows:
SA = DAAR x ((RE x $70) + (ARENR x ARSA)) x GCA
where
DAAR means the district attendance adjustment rate;
RE means the school district's or county vocational school district's resident enrollment;
ARENR means the district's number of at-risk pupils;
ARSA means the at-risk security amount; and
GCA is the geographic cost adjustment as developed by the commissioner.
For the 2008-2009 through 2010-2011 school years the at-risk security amount shall be calculated as follows:
for a district in which the concentration of at-risk pupils is less than 40% of resident enrollment, the at-risk security amount shall equal the district's (AR% x $10.15 x 100); and
for a district in which the concentration of at-risk pupils is equal to or greater than 40%, the at-risk security amount shall equal $406.
The security cost coefficients, $70, $10.15 and $406, used to determine the security amount, shall be adjusted by the CPI in the 2009-2010 and 2010-2011 school years as required pursuant to subsection b. of section 4 of this act. For subsequent school years, the cost coefficients shall be established in the Educational Adequacy Report, with adjustments by the CPI for each of the two school years following the first school year to which the report is applicable.
(cf: P.L.2007, c.260, s.14)
6. Section 16 of P.L.2007, c.260 (C.18A:7F-58) is amended to read as follows:
16. a. (1) For the 2008-2009 school year, each school district and county vocational school district shall receive adjustment aid in such amount as to ensure that the district receives the greater of the amount of State aid calculated for the district pursuant to the provisions of this act or the State aid received by the district for the 2007-2008 school year multiplied by 102%. The State aid received by the district for the 2007-2008 school year shall include the following aid categories: Core Curriculum Standards Aid, Supplemental Core Curriculum Standards Aid, Education Opportunity Aid, Above Average Enrollment Growth Aid, High Expectations for Learning Proficiency Aid, Instructional Supplement Aid, Demonstrably Effective Program Aid, Stabilization Aid, Supplemental Stabilization Aid, Adult and Postsecondary Education Grants, Bilingual Education Aid, Special Education Aid, County Vocational Program Aid, Transportation Aid, School Choice Aid, Consolidated Aid, Additional Formula Aid, Full-day Kindergarten Supplemental Aid, Targeted-At-Risk Aid, Abbott-Bordered District Aid, Nonpreschool ECPA, Extraordinary Special Education Aid paid in 2006-2007, and Aid for Enrollment Adjustments, taking into consideration the June 2008 payment made in July 2008.
(2) For the 2009-2010 and 2010-2011 school years a school district or county vocational school district shall receive adjustment aid in such amount as to ensure that the district receives the greater of the amount of State aid calculated for the district pursuant to the provisions of this act or the State aid, other than educational adequacy aid, received by the district for the 2008-2009 school year.
(3) For the 2011-2012 school year and for each school year thereafter, a school district or county vocational school district that does not have a decline in its weighted enrollment, adjusted for bilingual education pupils and at-risk pupils, between the 2008-2009 school year and the budget year that is greater than 5% shall receive adjustment aid in such amount as to ensure that the district receives the greater of the amount of State aid calculated pursuant to the provisions of this act or the State aid, other than educational adequacy aid, received by the district for the 2008-2009 school year.
(4) For the 2011-2012 school year and for each school year thereafter, a school district or county vocational school district that has a decline in its weighted enrollment, adjusted for bilingual education pupils and at-risk pupils, between the 2008-2009 school year and the budget year that is greater than 5% shall have its adjustment aid reduced in an amount equal to the district's 2008-2009 per pupil adjustment aid amount multiplied by the decline in its resident enrollment that is greater than 5%.
(5) For the 2014-2015 school year and for each school year thereafter, in the case of a school district that is spending above adequacy, the amount of adjustment aid calculated pursuant to paragraph (3) or paragraph (4) shall be reduced by an amount equal to 50% of the amount by which the district is spending above adequacy.
b. In the case of a school district that received education opportunity aid in the 2007-2008 school year and for which the sum of the district's 2007-2008 State aid under the State aid categories listed under paragraph (1) of subsection a. of this section and general fund local levy is less than the sum of the district's adequacy budget as calculated pursuant to section 9 of this act, special education categorical aid calculated pursuant to section 13 of this act, and security aid calculated pursuant to section 14 of this act, the district shall receive educational adequacy aid if it meets the following criteria:
(1) the district fails to meet educational adequacy standards as determined by the commissioner; or
(2) the district is located in a municipality with an equalized total tax rate that is greater than 130% of the Statewide average equalized total tax rate; or
(3) the district has an equalized school tax rate that is greater than 110% of the Statewide average equalized school tax rate and is located in a municipality with an equalized total tax rate that is greater than 120% of the Statewide average equalized total tax rate; and
(4) the district will not meet adequacy in the 2008-2009 school year based on the State aid increase received by the district for that school year.
An eligible district shall receive educational adequacy aid for the 2008-2009 school year in accordance with the following formula:
EA aid = ((AB + SE + SA) - (GFL + A08)) x .33) - ls - SA;
where AB is the district's adequacy budget as calculated pursuant to section 9 of this act;
SE is the district's special education categorical aid calculated pursuant to section 13 of this act;
SA is the district's security categorical aid calculated pursuant to section 14 of this act;
GFL is the district's prebudget year general fund local levy;
A08 is the sum of the district's 2007-2008 State aid under the State aid categories listed under paragraph (1) of subsection a. of this section;
ls is the district's prebudget year general fund local levy, multiplied by 4% in the case of a district which meets the criteria of paragraph (2) or paragraph (3) of this subsection, or in the case of a district which does not meet those criteria multiplied by 6%; and
SA is any increase in State aid between the prebudget and budget years.
An eligible district shall receive educational adequacy aid for the 2009-2010 school year in accordance with the following formula:
EA aid = ((AB - (GFL + PEQAID )) x .50) -ls; and
An eligible district shall receive educational adequacy aid for the 2010-2011 school year in accordance with the following formula:
EA aid = (AB - (GFL + PEQAID) -ls)
where
AB is the district's adequacy budget as calculated pursuant to section 9 of this act;
GFL is the district's prebudget year general fund local levy;
PEQAID is the district's prebudget year equalization aid calculated pursuant to section 11 of this act; and
ls is the district's prebudget year general fund local levy, multiplied by 4% in the case of a district which meets the criteria of paragraph (2) or paragraph (3) of this subsection, or in the case of a district which does not meet those criteria multiplied by 8% for the 2009-2010 school year and by 10% for the 2010-2011 school year;
For the 2011-2012 school year and for each school year thereafter, the district shall receive the amount of educational adequacy aid that the district received in the 2010-2011 school year.
(cf: P.L.2007, c.260, s.16)
7. This act shall take effect immediately.
STATEMENT
This bill amends the "School Funding Reform Act of 2008" (SFRA), P.L.2007, c.260 (C.18A:7F-43 et al.) to incorporate the certain modifications recommended by the Department of Education in its Education Funding Report issued February 23, 2012 and the Educational Adequacy Report issued December 14, 2012. Specifically, the bill makes three changes to the SFRA.
First, in the case of a school district in which the average daily attendance rate over the most recent three school years is less than 96%, the enrollment figures used to calculate the district's aid are reduced by a percentage equal to the difference between 96% and the district's average daily attendance rate for the three most recent school years, as reported in the School Register Summary.
Second, in the case of a district that is spending above its adequacy threshold, adjustment aid awarded to the district is reduced by 50% of the amount by which the district is spending above adequacy.
Third, the bill reduces the additional weights included in the SFRA for at-risk students (students who qualify for the federal free and reduced-price lunch program), bilingual students, and combination students (those who are both at-risk and bilingual). As enacted, the additional weight for at-risk students ranged from 0.47 to 0.57; under the bill, the at-risk weight would range from 0.42 to 0.46. The weight for bilingual students is reduced from 0.50 to 0.46, while the weight for combination students is reduced from 0.125 to 0.0981 (plus the weight for at-risk students).
