Sponsored by:
Senator JAMES BEACH
District 6 (Burlington and Camden)
Co-Sponsored by:
Senators Diegnan, Singleton, McKnight and Cryan
SYNOPSIS
Requires Commissioner of Education to permit certain school districts losing State school aid to submit budgets after enactment of FY 2025 appropriations act.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning budget submissions for certain school districts.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding the provisions of any law, rule, or regulation to the contrary, the Commissioner of Education shall, for the 2024-2025 school year only, permit a school district, which is proposed to experience a State school aid reduction according to the State aid notice for the 2024-2025 school year distributed to school districts in March 2024, to first submit its budget to the commissioner no later than five days following the enactment of the appropriations act for the State fiscal year ending June 30, 2025, provided, however, that the reduction to be experienced by the school district is greater than the total amount of the district’s unused tax authority determined pursuant to subsection e. of section 4 of P.L.2007, c.62 (C.18A:7F-39). The commissioner is authorized to make any adjustments to the school budget calendar that are necessary to conform with the provisions of this section, which adjustments shall include a compressed schedule by which a school district can enact its budget.
2. This act shall take effect immediately.
STATEMENT
This bill requires the Commissioner of Education to permit certain school districts losing State school aid to submit budgets after enactment of the State fiscal year 2025 appropriations act. The commissioner is authorized under the bill to make any adjustments to the school budget calendar that are necessary to conform with the provisions of the bill, which adjustments include a compressed schedule by which a school district can enact its budget.
The bill would apply to school districts, which are proposed to receive a State school aid reduction and are experiencing a reduction that is greater than the total amount of the district’s unused tax authority permitted under current law. This unused tax authority is often referred to as “banked cap.” Under current law, a school district may add to its adjusted tax levy in any one of the next three succeeding budget years, the amount of the difference between the maximum allowable amount to be raised by taxation for the current school budget year and the actual amount to be raised by taxation for the current school budget year.