ASSEMBLY BUDGET COMMITTEE

 

STATEMENT TO

 

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 4181

 

STATE OF NEW JERSEY

 

DATED:  JUNE 18, 2018

 

      The Assembly Budget Committee reports favorably an Assembly Committee Substitute for Assembly Bill No. 4181.

      This substitute requires each renaissance school district to establish a common enrollment system, clarifies that employees of renaissance school projects are members of the State-administered retirement systems, and modifies the definition of “urban campus area” under the “Urban Hope Act,”  N.J.S.A.18A:36C-1 et seq.

      Renaissance school districts are districts with a history of poor performance on Statewide assessments that elect to enter into an agreement with a nonprofit entity for the construction and operation of new public schools in that district.  These schools are known as renaissance school projects.  The Camden City School District is the only district that has entered into such an agreement and is the only district affected by the substitute’s provisions.  The substitute makes three changes that affect the district.

     First, the substitute requires that the superintendent or State superintendent, as applicable, of a renaissance school district establish a common enrollment system, meaning a system under which students are required to apply to public schools located in the district through a single application.  All public schools located in the district, including schools operated by the district, charter schools, and renaissance school projects, would be required to participate.

     Second, the substitute modifies the definition of an “urban campus area.”  A renaissance school project must be in an urban campus area.  Currently, an urban campus area is defined to mean the area within a 1.5-mile radius of the site of the initial school of a renaissance school project, except in the case of a high school building which may be located within a two-mile radius of the initial school of a renaissance school project.  This substitute provides that the 1.5-mile or 2-mile radius would apply to any building of the renaissance school designated by the nonprofit entity that operates the renaissance school project, not to the initial building of the renaissance school project.

     Third, the substitute also clarifies that individuals employed by renaissance school projects are members of the State-administered retirement systems. 

 

FISCAL IMPACT:

      The Office of Legislative Services (OLS) notes that the substitute will have no fiscal impact on the school district.  First, the Camden School District already employs a common enrollment system, and all public schools in the district, except for one charter school, currently participate in it.  Given that the infrastructure to operate a common enrollment system already exists, the OLS does not believe that the inclusion of one additional school would change the cost.  Second, while the substitute provides clarification that renaissance school project employees are members of the State-administered retirement systems, the OLS notes that these individuals are currently considered members of the State-administered retirement systems.  Third, while the revised definition of “urban campus area” may allow a nonprofit entity to establish a school building in a different area of the renaissance school district than is allowed under current law, any such action would be subject to a contractual agreement between the nonprofit entity and the renaissance school district.