S2879

An Act establishing the “School Finance Reform Commission.”

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

1. a. There is established the “School Finance Reform Commission” in, but not of, the Department of Education. The commission shall consist of 13 members as follows:

(1) the Commissioner of Education, ex officio, or the commissioner’s designee;

(2) the President of the State Board of Education, ex officio, or the president’s designee;

(3) 11 public members appointed as follows:

(a) two members appointed by the President of the Senate;

(b) two members appointed by the Minority Leader of the Senate;

(d) two members appointed by the Minority Leader of the General Assembly; and

(e) three members, no more than two of whom shall be of the same political party, appointed by the Governor.

b. The appointments to the commission shall be made within 30 days of the effective date of this act. Vacancies in the membership of the commission shall be filled in the same manner as the original appointments were made. Members of the commission shall serve without compensation, but shall be reimbursed for necessary expenditures incurred in the performance of their duties as members of the task force within the limits of funds appropriated or otherwise made available to the task force for its purposes.

c. The commission shall organize as soon as practicable, but no later than 30 days following the appointment of its members. The commission shall choose a chairperson from among its members and shall appoint a secretary who need not be a member of the task force.

d. Professional, clerical, and administrative staff and related support services shall be provided to the commission by the Department of Education. The commission is authorized to call upon any department, office, division or agency of the State, or of any county, municipality or school district of the State, to supply data, reports and other information, personnel, and assistance as it deems necessary to discharge its duties and responsibilities pursuant to this act.

2. a. It shall be the duty of the “School Finance Reform Commission” established pursuant to section 1 of this act to study the effectiveness of, and provide recommendations on improving, various aspects of school budgeting, finance, and funding, with a particular emphasis on the following topics:

(1) school district property tax levies and the tax levy growth limitation established by section 3 of P.L.2007, c.62 (C.18A:7F-38); and

(2) the calculation of local share enumerated in section 10 of P.L.2007, c.260 (C.18A:7F-52), which is used in determining a district’s allocation of equalization aid pursuant to section 11 of P.L.2007, c.260 (C.18A:7F-53).

b. The commission shall submit a report to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), no later than one year after the organization of the commission. The report shall include the findings of the commission and recommendations to improve school budgeting, finance, and funding. The report shall be posted in a prominent location on the Internet website of the Department of Education.

3. This act shall take effect immediately, and shall expire 30 days after the commission issues its final report.

STATEMENT

This bill establishes the School Finance Reform Commission. The purpose of the commission is to study the effectiveness of, and provide recommendations on improving, various aspects of school budgeting, finance, and funding, including but not limited to: school district property tax levies and the tax levy growth limitation; and the calculation of local share used in determining a district’s allocation of equalization aid.

The commission is to consist of 13 members, including the Commissioner of Education and the President of the State Board of Education, or their designees, and 11 public members appointed by the President of the Senate, the Minority Leader of the Senate, the Speaker of the General Assembly, the Minority Leader of the General Assembly, and the Governor.

The commission is to issue a report no later than one year after its organization detailing the findings of the commission and making recommendations for the improvement of school budgeting, finance, and funding.