Sponsored by:
Senator LINDA R. GREENSTEIN
District 14 (Mercer and Middlesex)
SYNOPSIS
Appropriates funds up to $25 million for distribution to certain school districts to support health care cost increases.
CURRENT VERSION OF TEXT
As introduced.
An Act appropriating funds to support health care cost increases in certain school districts.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. There is appropriated from the Property Tax Relief Fund such amounts, not to exceed $25,000,000 as determined by the Commissioner of Education and subject to the approval of the Director of the Division of Budget and Accounting, as are necessary to support a qualifying school district that has implemented the allowable adjustment to the adjusted tax levy for increases in health care costs pursuant to paragraph (1) of subsection d. of section 3 of P.L.2007, c.62 (C.18A:7F-38) in the 2026-2027 school year. Funds received by a qualifying school district pursuant to this section shall be the product of the amount of funds, not to exceed $25,000,000, determined to be available for the purposes of this section and the district’s proportionate share of the Statewide total increase in health care costs among all school districts.
b. As used in this section, “qualifying school district” means a school district meeting the following criteria:
(1) the district is spending below adequacy as calculated pursuant to section 1 of P.L.2018, c.67 (C.18A:7F-70);
(2) the district’s maximum adjusted tax levy increase authority in the 2026-2027 school year pursuant to section 3 and section 4 of P.L.2007, c.62 (C.18A:7F-38 and C.18A:7F-39) is less than the difference between the district’s local share in the 2026-2027 school year calculated pursuant to section 10 of P.L.2007, c.260 (C.18A:7F-52) and the district’s adjusted tax levy in the 2025-2026 school year;
(3) the district has no available banked cap to apply to the adjusted tax levy in the 2026-2027 school year pursuant to subsection e. of section 4 of P.L.2007, c.62 (C.18A:7F-39); and
(4) the district has, in the 2026-2027 school year, utilized its maximum adjusted tax levy increase authority pursuant to section 3 and section 4 of P.L.2007, c.62 (C.18A:7F-38 and C.18A:7F-39).
2. This act shall take effect immediately.
STATEMENT
This bill authorizes the appropriation of funds, not to exceed $25 million, to support certain school districts that have increased their property tax levies to fund increased health care costs.
School districts qualifying for funds under the bill are those that meet various criteria demonstrating use of the full level of statutorily authorized, allowable local tax levy increases. The amount of funds a qualifying school district would receive under the bill will be equal to the product of the amount of funds available for the purposes of the bill, not to exceed $25 million, and the qualifying district’s proportionate share of the Statewide total increase in health care costs among all school districts.