LEGISLATIVE FISCAL ESTIMATE

SENATE, No. 3943

STATE OF NEW JERSEY

219th LEGISLATURE

 

DATED: JUNE 22, 2021

 

 

SUMMARY

 

Synopsis:

Establishes State supplement for federal summer food service program meals.

Type of Impact:

Annual State expenditure increase from the General Fund; annual revenue increase to certain school districts.

Agencies Affected:

Department of Agriculture, Department of Education, certain school districts.

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 

Year 3 

 

State Expenditure Increase

Approximately $300,000

 

Local Revenue Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) determines that this bill would result in an annual expenditure increase by the Department of Agriculture from the General Fund of approximately $300,000.  According to a press release from the Department of Agriculture, approximately three million meals were served in New Jersey under the Summer Food Service Program in 2017.  Multiplying the number of meals by the $0.10 supplement per meal, as required under the bill, yields a $300,000 annual expenditure increase.

 

·         The OLS notes that some of the additional sums expended by the State would be transferred to school districts that participate in the Summer Food Service Program, thus the bill would also result in an annual local revenue increase.  The OLS cannot quantify this increase, however, because it is unclear what percentage of the funds will go to school districts, as opposed to nonprofit organizations that participate in the program.

 

·         The OLS also notes that the bill may result in marginal annual expenditure increases by the Department of Agriculture and the Department of Education to provide guidance and support to operators of the program, and to prepare an annual report required by the bill, but these additional duties can likely be subsumed by existing staff.

 

BILL DESCRIPTION

 

      This bill requires the Department of Agriculture, in consultation with the Department of Education, to develop and administer a summer food service program State supplement to provide an additional reimbursement to certain school districts and nonprofit organizations that participate in the federal summer food service program.

      Under the bill, the State would provide a $0.10 per meal supplement to the existing federal reimbursement to operators of the federal summer food service program.

      The bill directs the departments to provide guidance and support to operators of the federal summer food service program, and to prepare and issue an annual report detailing the annual cost of the State supplement per month and the number and percentage of additional students participating in the federal summer food service program.

      The bill specifies that the Legislature is to annually appropriate funds necessary to implement the bill.  The bill would take effect on June 1, 2023.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that this bill would result in an annual expenditure increase by the Department of Agriculture from the General Fund of approximately $300,000.  According to a press release from the Department of Agriculture, approximately three million meals were served in New Jersey under the Summer Food Service Program in 2017.  Multiplying that number of meals by $0.10 per meal yields a $300,000 annual State expenditure increase.  The OLS notes that the number of children participating in the program may have increased since 2017, in which case this estimate is low.  On the other hand, a spike in the participation rate due to the COVID-19 pandemic during 2020 and 2021 may subside by the time the bill goes into effect in 2023.  In any case, the annual expenditure increase would fluctuate from year to year based on the number of children participating in the program.

      The OLS notes that some of the additional sums expended by the State would be transferred to school districts that participate in the Summer Food Service Program, thus the bill would also result in an annual local revenue increase.  The OLS cannot quantify this increase, however, because it is unclear what percentage of the funds will go to school districts, as opposed to nonprofit organizations that participate in the program.

      The OLS also notes that the bill may result in marginal annual expenditure increases by the Department of Agriculture and the Department of Education to provide guidance and support to operators of the program, and to prepare an annual report required by the bill, but these additional duties can likely be subsumed by existing staff.

Section:

Environment, Agriculture, Energy, and Natural Resources

Analyst:

Eric Hansen

Associate Research Analyst

Approved:

Thomas Koenig

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.).