A3869

A Supplement to "An Act making appropriations for the support of the State Government and the several public purposes for the fiscal year ending June 30, 2017 and regulating the disbursement thereof," approved June , 2016 (P.L.2016, c. ).

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

1. In addition to the amounts appropriated under P.L.2016, c. , there is appropriated out of the Property Tax Relief Fund the following sum for the purpose specified:

34 DEPARTMENT OF EDUCATION *30 Educational, Cultural, and Intellectual Development* *31 Direct Educational Services and Assistance* STATE AID
01-5120 General Formula Aid... ......................................................		$50,000,000
Total State Aid Appropriation,		$50,000,000
Direct Educational Services and Assistance ....................
*State Aid*:
01 Supplementary Under Adequacy Aid (PTRF)..	($50,000,000)

The amounts hereinabove appropriated for Supplementary Under Adequacy Aid shall be allotted to certain school districts that satisfy the following criteria: 1) the school district’s prebudget year spending level is more than five percent below the school district’s budget year adequacy spending level, where the prebudget year spending level equals the sum of the school district’s equalization aid, special education categorical aid, security categorical aid, adjustment aid, and general fund tax levy for the 2015-2016 school year, and the budget year adequacy spending level equals the sum of the school district’s adequacy budget, as calculated pursuant to section 9 of P.L.2007, c.260 (C.18A:7F-51), special education categorical aid, as calculated pursuant to section 13 of P.L.2007, c.260 (C.18A:7F-55), and security categorical aid, as calculated pursuant to section 14 of P.L.2007, c.260 (C.18A:7F-56); and either 2) the school district’s equalized property valuation per pupil is no greater than 75 percent of the Statewide average equalized property valuation per pupil; or 3) the school district’s October 2010 resident enrollment was greater than 1,000 and its October 2015 resident enrollment exceeded its October 2010 enrollment by more than 25 percent. School districts that satisfy these criteria shall be ranked, using data from the most recent school year for which audited expenditure data are available, with respect to: 1) classroom instruction costs, as a percent of total budgetary costs; and 2) student support services costs, as a percent of total budgetary costs. Each school district that ranks in the 75th percentile or higher on either ranking shall receive an amount of aid, not to exceed $2,000,000, equal to the school district’s projected resident enrollment multiplied by the per pupil funding amount obtained by dividing the total amount appropriated by the total projected resident enrollment of such school districts. Any remaining appropriation shall be allotted to each school district that ranks in the 65th percentile or higher, but less than the 75th percentile on either ranking. Each such school district shall receive an amount of aid, not to exceed $2,000,000, equal to the school district’s projected resident enrollment multiplied by the per pupil funding amount obtained by dividing the total amount of unallocated appropriations by the total projected resident enrollment of such school districts.

2. This act shall take effect July 1, 2016, or upon the enactment of P.L.2016, c. , the annual appropriations act for fiscal year 2016-2017, whichever occurs later.

STATEMENT

This bill makes a supplemental appropriation of $50 million in fiscal year 2016-2017 from the Property Tax Relief Fund to the Department of Education to provide additional State school aid to certain school districts that are spending below the adequacy spending level. A school district may receive an allotment of Supplementary Under Adequacy Aid if the school district: 1) spends below its adequacy spending level by more than five percent, and either: 2) has an equalized property valuation per pupil that is no greater than 75 percent of the State average equalized property valuation per pupil; or 3) had a resident enrollment in October 2010 greater than 1,000, and, in October 2015, the resident enrollment exceeded the October 2010 resident enrollment by more than 25 percent.

School districts that satisfy these criteria would then be ranked on two measures: 1) classroom instruction costs as a percent of total budgetary costs; and 2) student support services costs as a percent of total budgetary costs. A per pupil aid amount would be calculated by divided the $50 million appropriation by the total projected resident enrollment of all school districts that rank in the 75th percentile or higher on either ranking. These school districts would receive an aid allotment equal to their projected resident enrollment multiplied by the per pupil amount, not to exceed $2 million.

To the extent that any of the appropriated funds remain unallocated, as a result of the $2 million limit, a second per pupil amount would be calculated by dividing the total unallocated appropriation by the projected resident enrollment of school districts that rank in the 65th percentile or higher, but lower than the 75th percentile, on either ranking. These districts would receive an amount of aid equal to this per pupil amount multiplied by their projected resident enrollment, not to exceed $2 million.