LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

SENATE, No. 1832

STATE OF NEW JERSEY

218th LEGISLATURE

 

DATED: JULY 17, 2019

 

 

SUMMARY

 

Synopsis:

Establishes loan redemption program and tuition reimbursement program for certain teachers of science, technology, engineering, and mathematics.

Type of Impact:

Annual State expenditure increase

Agencies Affected:

Higher Education Student Assistance Authority

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

Annual

 

 

State Expenditure Increase

 

Indeterminate

 

 

 

 

 

·         The Office of Legislative Services (OLS) estimates that the bill will lead to an indeterminate annual increase in State expenditures by the Higher Education Student Assistance Authority (HESAA).  Factors that would determine the total State expenditure increase include the number of teachers that teach a science, technology, engineering, or mathematics (STEM) course, the amount of eligible tuition costs, and the loan balances of program participants.

 

·         The OLS notes that, based on State assessments administered in the 2016-2017 and 2017-2018 school years, approximately 292 schools in 164 districts satisfy the bill’s criteria to be designated as low performing public schools under the loan redemption program.

 

 

BILL DESCRIPTION

 

      The bill establishes a loan redemption program and a tuition reimbursement program for public school teachers who teach STEM classes.  Under the loan redemption program, the redemption of loans will equal 25 percent of the participant’s eligible student loan expenses, up to $5,000, in return for each consecutive year of full-time employment as a teacher of a STEM subject area in a public school.  The total amount of eligible student loan expenses which may be redeemed under the program, for four full school years, cannot exceed $20,000.  The program will provide for the loan redemption following the fourth consecutive year of full-time employment as a teacher of a STEM subject.

      HESAA is directed to give priority to teachers of STEM subjects employed in a low performing public school.  The bill defines a low performing public school as one in which either: 1) in the prior two school years, the sum of the percent of students scoring in the “not yet meeting expectations” and “partially meeting expectations” categories in both the language arts and mathematics subject areas exceeded 40 percent, or 2) in the prior two school years, the sum of the percent of students scoring in these categories in either the language arts or mathematics subject areas exceeded 65 percent. 

      The tuition reimbursement program established under the bill will provide for the reimbursement of a portion of the eligible tuition expenses incurred by a program participant in completing a master’s degree or Ph.D. program in a STEM subject or in completing 30 credits in a coherent sequence of courses in a STEM subject.  An eligible participant for tuition reimbursement must teach STEM classes at a public school for four years to receive the reimbursement.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that the bill will lead to an indeterminate annual increase in State expenditures.

      Under the loan redemption program, the redemption of loans equals 25 percent of the participant’s eligible student loan expenses, up to $5,000, in return for each consecutive year of full-time employment as a teacher of a STEM subject area in a public school.  The total amount of eligible student loan expenses which may be redeemed under the program, for four full school years, cannot exceed $20,000 and a teacher will be required to complete four full school years to be eligible to receive loan redemption under the program.  HESAA is directed to give priority for the loan redemption program to teachers who teach STEM courses at low performing public schools.  The OLS notes that, based on State assessments administered in the 2016-2017 and 2017-2018 school years, approximately 292 schools in 164 districts satisfy the bill’s criteria to be designated as low performing public schools.  The OLS is not able to estimate the potential cost of this program due to a lack of information on the number of teachers eligible to participate in the program and the total loan balances that would be eligible for redemption.

      Under the tuition reimbursement program, reimbursement will equal 25 percent of the participant’s tuition expenses, up to $5,000, in return for each full year of teaching STEM classes. Total tuition reimbursement cannot exceed $20,000 and a teacher will be required to complete four full school years to be eligible to receive tuition reimbursement under the program.  The OLS is not able to estimate the potential cost of this program due to the lack of information on the number of public school teachers who would be eligible for this program and the tuition costs for which they may seek reimbursement.

 

Section:

Education

Analyst:

William Owens

Assistant Fiscal Analyst

Approved:

Frank W. Haines III

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).