ASSEMBLY, No. 20

 

STATE OF NEW JERSEY

 

INTRODUCED JULY 18, 1996

 

 

By Assemblymen STUHLTRAGER, ROCCO, Assemblywoman Murphy, Assemblymen Felice, Bagger, DiGaetano, Wolfe and DeCroce

 

 

An Act providing for the maintenance and support of a thorough and efficient system of free public schools and revising parts of the statutory law.

 

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

 

    1. (New section) This act shall be known and may be cited as the "Comprehensive Educational Improvement and Financing Act of 1996."

 

    2. (New section) a. The Legislature finds and declares that:

    (1) Each child in New Jersey must be guaranteed access to a free public education based on rigorous standards which define the knowledge and skills all children must have in order to function in the contemporary setting as a citizen and competitor in the labor market, and each school district must be guaranteed access to resources to provide that education in an efficient manner;

    (2) The New Jersey Constitution requires the Legislature to provide for the maintenance and support of a thorough and efficient system of free public schools for the instruction of all the children in the State between the ages of 5 and 18 years;

    (3) Prior school funding laws have not succeeded in ensuring that every child has access to a constitutionally sufficient system of schools regardless of where the child resides, or that public funds expended in support of schools are appropriately directed, in part because of the lack of specific definition of what constitutes a thorough and efficient education;

    (4) Prior laws have also led to funding systems which have permitted spending levels in many districts without reference to specific educational results, required State and local governments to seek ever-increasing levels of taxation and funding in order to keep pace with high spending districts, and failed to generate measurable improvement in parity of academic achievement even in those districts in which funding has been increased to higher levels; and

    (5) Existing school budget development, approval and appeal processes, and incorporation of local goals into State approval procedures for review of thoroughness and efficiency have further encouraged a system that defines a thorough and efficient education as the sum of whatever elements each district determines to include in its own individual budget.

    b. It is, therefore, necessary for the Legislature to provide, and the Legislature does hereby establish:

    (1) A process for the establishment, and the periodic review and revision, of a clear and comprehensive definition of the substantive elements of a thorough and efficient system of education as required by the New Jersey Constitution, uniformly applicable to districts Statewide, specifying what students ought to learn and what academic standards they should meet in order to function as citizens and competitors in the contemporary world and workplace, as well as the types of programs and services that will accomplish these ends in a thorough and efficient manner;

    (2) The level of fiscal support necessary to provide those programs and services;

    (3) A funding mechanism that will ensure such support, shared by the State and local school districts in a fair and equitable manner;

    (4) A system that directs that expenditure of public funds for the maintenance and support of a thorough and efficient system of education will be undertaken with prudence and sound management while at the same time recognizing those expenditure levels which have previously been approved by the voters;

    (5) A system that provides a degree of flexibility for local school districts in achieving standards established for the provision of a thorough and efficient education and which safeguards the educational programs which have previously been approved and established within school districts as mechanisms to advance student achievement, the dismantling of which will create undue disruption of the educational process, the students those programs are intended to serve, and the school district personnel responsible for the implementation of those programs; and

    (6) A system of accountability with mechanisms for enforcement when districts fail to meet standards.

 

    3. (New section) As used in this act, unless the context clearly requires a different meaning:

    "Abbott District" means one of the 28 urban districts in district factor groups A and B specifically identified in the appendix to Raymond Abbott, et al. v. Fred G. Burke, et al. decided by the New Jersey Supreme Court on June 5, 1990 (119 N.J.287, 394);

    "Area cost allowance" means, commencing annually with January 1996, an average determined by multiplying the average estimated five-city historical cost index for construction in New Jersey reported by the R. S. Means Company, Inc. (Means Index ) for January of each year by $ 88 and dividing by 121.5;

    "Average monthly allowable increase in the area cost allowance for the prior year" means the amount determined for the 1997 calendar year and each calendar year annually thereafter by subtracting the area cost allowance for January of the prior calendar year from the area cost allowance for January of the current calendar year and dividing the result by twelve;

    "Bilingual education pupil" means a pupil enrolled in a program of bilingual education or in an English as a second language program approved by the State Board of Education;

    "Budgeted local share" means the sum of designated general fund balance, miscellaneous revenues estimated consistent with GAAP, and that portion of the district's local tax levy contained in the T&E budget certified for taxation purposes;

    "Capacity utilization" means the number of pupils eligible for transportation aid actually transported on regular vehicles divided by the number of regular vehicles utilized;

    "Commissioner" means the Commissioner of Education;

    "Concentration of low income pupils" means, for a school district or a county vocational school district, the number of low income pupils among those counted in modified district enrollment, divided by modified district enrollment. For a school, it means the number of low income pupils enrolled at that school, divided by the school's total enrollment;

    "CPI" means the average annual increase, expressed as a decimal, in the consumer price index for the New York City and Philadelphia areas during the fiscal year preceding the prebudget year as reported by the United States Department of Labor;

    "County special services school district" means any entity established pursuant to article 8 of chapter 46 of Title 18A of the New Jersey Statutes;

    "County vocational school district" means any entity established pursuant to article 3 of chapter 54 of Title 18A of the New Jersey Statutes;

    "County vocational school, special education services pupil" means a pupil who is attending a county vocational school and who is receiving specific services pursuant to chapter 46 of Title 18A of the New Jersey Statutes;

    "Debt service" means and includes payments of principal and interest upon school bonds and other obligations issued to finance the purchase or construction of school facilities, additions to school facilities, or the reconstruction, remodeling, alteration, modernization, renovation or repair of school facilities, including furnishings, equipment, architect fees and the costs of issuance of such obligations and shall include payments of principal and interest upon bonds heretofore issued to fund or refund such obligations, and upon municipal bonds and other obligations which the commissioner approves as having been issued for such purposes. Debt service pursuant to the provisions of P.L.1978, c.74 (C.18A:58-33.22 et seq.), P.L.1971, c.10 (C.18A:58-33.6 et seq.) and P.L.1968, c.177 (C.18A:58-33.2 et seq.) and for the acquisition of a site is excluded;

    "District factor group A district" means a school district, other than a school district in which the equalized valuation per pupil is more than twice the average Statewide equalized valuation per pupil, which based on the 1990 federal census data is included within the Department of Education's district factor group A;

    "District income" for the 1997-98 school year means the aggregate income of the residents of the taxing district or taxing districts, based upon data provided by the Bureau of the Census in the United States Department of Commerce for the most recent year prior to the budget year. Beginning with the 1998-99 school year and thereafter, district income means the aggregate taxable income of the residents of the taxing district or taxing districts, based upon data provided by the Division of Taxation in the New Jersey Department of the Treasury and contained on the New Jersey State Income Tax forms for the calendar year ending prior to the prebudget year. With respect to regional districts and their constituent districts, however, the district income as described above shall be allocated among the regional and constituent districts in proportion to the number of pupils in each of them;

    "Estimated minimum equalized tax rate" means a school district's required local share divided by its equalized valuation;

    "Equalized valuation" means the equalized valuation of the taxing district or taxing districts expressed in units of $100, as certified by the Director of the Division of Taxation on October 1 of the prebudget year. With respect to regional districts and their constituent districts, however, the equalized valuations as described above shall be allocated among the regional and constituent districts in proportion to the number of pupils in each of them;

    "GAAP" means the generally accepted accounting principles established by the Governmental Accounting Standards Board as prescribed by the State board pursuant to N.J.S.18A:4-14;

    "Household income" means income as defined in 7CFR 245.2 and 245.6 or any subsequent superseding federal law or regulation;

    "Lease purchase payment" means and includes payments of principal and interest for lease purchase agreements in excess of five years approved pursuant to subsection f. of N.J.S.18A:20-4.2 to finance the purchase or construction of school facilities, additions to school facilities, or the reconstruction, remodeling, alteration, modernization, renovation or repair of school facilities, including furnishings, equipment, architect fees and issuance costs. Approved lease purchase agreements shall be accorded the same accounting treatment as school bonds. Lease purchase agreement principal and interest for the acquisition of a site is excluded;

    "Local leeway budget" means that portion of the district's local levy that is above the maximum T&E budget and therefore used to support educational expenditures that are not necessary to deliver the substantive elements of a thorough and efficient education;

    "Low-income pupils" means those pupils from households with a household income at or below the most recent federal poverty guidelines available on December 30 of the prebudget year multiplied by 1.30;

    "Maintenance" means expenditures which are approved by the commissioner for repairs and replacements for the purpose of keeping a school facility open, comfortable and safe for use or in its original condition, including repairs and replacements to a school facility's heating, lighting, ventilation, security and other built-in furnishings or equipment to keep the furnishings or equipment in effective working condition. Maintenance shall not include any salaries or contracted custodial or janitorial services, expenditures for the cleaning of a school facility or its built-in furnishings or equipment, the care and upkeep of grounds or parking lots, and the cleaning of, or repairs and replacements to, movable furnishings or equipment;

    "Minimum permissible T&E budget" means the sum of a district's core curriculum standards aid, and required local share calculated pursuant to sections 14 and 15 of this act;

    "Modified district enrollment" means the number of pupils who, on the last school day prior to October 16 of the current school year, are enrolled in the school district or county vocational school district; or are resident in the school district or county vocational school district and are: (1) receiving home instruction, (2) enrolled in an approved private school for the handicapped, (3) enrolled in a regional day school, or (4) enrolled in a county special services school district;

    "Net budget" means the sum of the net T&E budget and the local leeway budget;

    "Net T&E budget" means the sum of the T&E program budget, early childhood program aid, demonstrably effective program aid, transportation aid, and categorical program aid received pursuant to sections 19 through 22, 24, 28, and 29 of this act;

    "Prebudget year" means the school year preceding the year in which the school budget is implemented;

    "Projected area cost allowance" means the amount determined annually for each month of the twelve month period commencing on January 1 of each calendar year by adding the area cost allowance for January of that calendar year and the average monthly allowable increase in the area cost allowance for the prior year. The projected area cost allowance for each subsequent month shall be determined by adding the projected area cost allowance for the previous month and the average monthly allowable increase in the area cost allowance for the prior year. For the purposes of determining approved costs of school facilities projects, the projected area cost allowance shall be that of the month of issuance of facilities bonds or certificates of participation;

    "Report on the Cost of Providing a Thorough and Efficient Education" or "Report" means the report issued by the commissioner pursuant to section 4 of this act;

    "Resident enrollment" means the number of pupils who, on the last school day prior to October 16 of the current school year, are residents of the district and are enrolled in: (1) the public schools of the district, including evening schools, (2) another school district, other than a county vocational school district in the same county on a full-time basis, or a State college demonstration school or private school to which the district of residence pays tuition, or (3) a State facility; or are residents of the district and are: (1) receiving home instruction, or (2) in a shared-time vocational program and are regularly attending a school in the district and a county vocational school district. Pupils in a shared-time vocational program shall be counted on an equated full-time basis in accordance with procedures to be established by the commissioner. Resident enrollment shall include regardless of nonresidence, the enrolled children of teaching staff members of the school district who are permitted, by contract or local district policy, to enroll their children in the educational program of the school district without payment of tuition. Handicapped children between three and five years of age and receiving programs and services pursuant to N.J.S.18A:46-6 shall be included in the resident enrollment of the district.

    For purposes of calculating State aid pursuant to this act unless otherwise specified within the act, the commissioner shall utilize enrollment data from prior years, any available data on births, and a cohort survival methodology to project current resident enrollment. The commissioner shall adjust aid calculations as soon as practicable after the availability of actual resident enrollment data. Beginning in 1997-98 and thereafter, resident enrollment shall also include those nonresident children who are permitted to enroll in the educational program without payment of tuition as part of a voluntary program of interdistrict public school choice approved by the commissioner;

    "School district" means any local or regional school district established pursuant to chapter 8 or chapter 13 of Title 18A of the New Jersey Statutes;

    "School enrollment" means the number of pupils enrolled at the school for the purpose of calculating demonstrably effective program aid, and for determining eligibility for academic achievement rewards pursuant to sections 18 and 29 of this act;

    "School facilities" means and includes any structure, building or facility used wholly or in part for academic purposes by a school district and shall exclude athletic stadiums and grandstands and any structure, building or facility used wholly for school administration;

    "Special education services pupils" means a pupil receiving specific services pursuant to chapter 46 of Title 18A of the New Jersey Statutes;

    "Stabilization aid growth limit" means 10% or the district's rate of growth in the district's projected resident enrollment over the prebudget year, whichever is greater. For the 1997-98 school year, this means 10% or one-half the district's rate of growth in the district's projected resident enrollment between the October 1991 enrollment report as contained on the district's Application for State School Aid for 1992-93 and the 1997-98 school year, whichever is greater. For the 1998-99 school year, this means the greatest of the following: 10%, one-half the district's rate of growth in projected resident enrollment over the October 1991 enrollment report as contained on the district's Application for State School Aid for 1992-93, or the district's projected rate of growth in resident enrollment over the prebudget year;

    "State facility" means a State developmental center; a day training center which is operated by or under contract with the State and in which all the children have been placed by the State, including a private school approved by the Department of Education which is operated under contract with the Bureau of Special Residential Services in the Division of Developmental Disabilities in the Department of Human Services; a State Division of Youth and Family Services' residential center; a State residential mental health center; a State training school secure care facility; a State juvenile community program; or a county juvenile detention center under the supervisory authority of the Juvenile Justice Commission pursuant to P.L.1995, c.284 (C.52:17B-169 et seq.);

    "Statewide average equalized school tax rate" means the amount calculated by dividing the general fund tax levy for all school districts, other than county vocational school and county special services school districts, in the State for the prebudget year by the equalized valuations of all taxing districts in the State except taxing districts for which there are no school tax levies;

    "Statewide equalized valuation" means the equalized valuation of all taxing districts in the State, expressed in units of $100, as certified by the Director of the Division of Taxation in the Department of the Treasury on October 1 of the prebudget year. In the event that the equalized table certified by the director shall be revised by the tax court after December 15 of the prebudget year, the revised valuations shall be used in the recomputation of aid for an individual school district filing an appeal, but shall have no effect upon the calculation of the property value multiplier;

    "T&E amount" means the cost per elementary pupil of delivering the core curriculum content standards and extracurricular and cocurricular activities necessary for a thorough regular education under the assumptions of reasonableness and efficiency contained in the Report on the Cost of Providing a Thorough and Efficient Education;

    "T&E flexible amount" means the dollar amount which shall be applied to the T&E amount to determine the T&E range;

    "T&E program budget" means the sum of core curriculum standards aid, supplemental core curriculum standards aid, stabilization aid, designated general fund balance, miscellaneous local revenue and that portion of the district's local levy that supports the district's T&E budget;

    "T&E range" means the range of regular education spending which shall be considered thorough and efficient. The range shall be expressed in terms of T&E budget spending per elementary pupil, and shall be delineated by alternatively adding to and subtracting from the T&E amount the T&E flexible amount;

    "Total Statewide income" means the sum of the district incomes of all taxing districts in the State;

    "Unhoused students" means the number of students who are projected to be enrolled in five years in preschool handicapped, preschool, kindergarten, grades one through twelve, and special education services pupil educational programs, located and currently being provided in a school district or which will be located and provided in a school district within five years, which are in excess of the capacity of the school district's current school facilities or the capacity of the school facilities which will be available within five years other than the school facilities for which the approved cost is determined, based upon a long range facilities plan as prescribed by the commissioner. The plan shall be submitted to and approved by the commissioner and shall include a cohort survival enrollment projection in which special education services students shall be considered part of the grade level to which the students' chronological age corresponds. For the purposes of calculating unhoused students, for districts which do not qualify for early childhood program aid pursuant to section 16 of this act, unhoused preschool students shall not be counted, and unhoused kindergarten students shall be counted at 50% of the actual count of unhoused kindergarten students. For districts that qualify for early childhood program aid pursuant to section 16 of this act, unhoused preschool and kindergarten students shall be counted at 100% of the actual count of unhoused preschool and kindergarten pupils.

 

    4. (New section) a. The State Board of Education shall adopt, and shall review and update every five years, core curriculum content standards which define the substance of a thorough education as guaranteed by the State Constitution. The standards shall ensure that all children are provided the educational opportunity needed to equip them for the role of citizen and labor market competitor in the contemporary setting.

    b. The Commissioner of Education shall develop and establish, through the report issued pursuant to subsection c. of this section, efficiency standards which define the types of programs, services, activities, and materials necessary to achieve an efficient education. The efficiency standards shall be reviewed biennially and revised as appropriate.

    As part of the periodic review process for the standards established pursuant to this subsection and subsection a. of this section, the State board and commissioner shall review local leeway budgets submitted in the intervening years to assess whether elements included in those budgets should be incorporated into the revised standards.

    c. Biennially in each even numbered year, in conjunction with transmittal of the State budget message pursuant to section 11 of P.L.1944, c.112 (C.52:27B-20), the Governor, after consultation with the commissioner, shall recommend to the Legislature through the issuance of the Report on the Cost of Providing a Thorough and Efficient Education:

    (1) the per pupil T&E amount, based upon the thoroughness and efficiency standards established pursuant to subsections a. and b. of this section; 

    (2) the T&E range as calculated pursuant to section 12 of this act; and 

    (3) additional per pupil amounts for the following aid programs:            special education;

            early childhood programs;

            demonstrably effective programs; 

            bilingual education; 

            county vocational schools; and

            distance learning network.

    The amounts, adjusted for inflation by the CPI in the second year to which the report applies, shall be deemed approved for the two successive fiscal years beginning one year from the subsequent July 1, unless between the date of transmittal and the subsequent July 1, the Legislature adopts a concurrent resolution stating that the Legislature is not in agreement with all or any part of the report, in which case the amounts then in effect shall continue in effect.

 

    5. (New section) a. Biennially, within 30 days following the approval of the Report on the Cost of Providing a Thorough and Efficient Education, the commissioner shall notify each district of the T&E amount, the T&E flexible amount, the T&E range, early childhood program amount, demonstrably effective program amount, and categorical amounts per pupil for the subsequent two fiscal years.

    Annually, within two days following the transmittal of the State budget message to the Legislature by the Governor pursuant to section 11 of P.L.1944, c.112 (C.52:27B-20), the commissioner shall notify each district of the maximum amount of aid payable to the district in the succeeding school year pursuant to the provisions of this act, and shall notify each district of the district's T&E budget, maximum T&E budget, and minimum permissible T&E budget for the succeeding school year.

    b. Each district shall have a required local share. In order to meet this requirement, each district shall raise a tax levy which, when added to the general fund balance designated for the budget year, miscellaneous revenues estimated consistent with GAAP to be realized during the budget year, supplemental core curriculum standards aid calculated pursuant to section 17 of this act and stabilization aid calculated pursuant to section 10 of this act, equals no less than the lesser of the local share calculated at the district's minimum T&E budget pursuant to section 13 of this act, or the district's budgeted local share for the prebudget year; except that for an Abbott District or a district factor group A district, it shall equal no less than the district's local share calculated at its minimum T&E budget pursuant to section 13 of this act. For 1997-98, the budgeted local share for the prebudget year shall not include miscellaneous revenues and general fund balance.

    For the 1997-98 school year, any tax increase which would be required of an Abbott District or a district factor group A district to meet its required local share, after consideration of supplemental core curriculum standards aid and stabilization aid shall be fully funded by the State and recorded as supplemental core curriculum standards aid. An assessment of the district's tax ratables and overall tax burden shall be conducted by a committee appointed by the commissioner. Upon receipt of the committee's assessment, the commissioner, in consultation with the Commissioner of the Department of Community Affairs and the Director of the Division of Local Government Services in the Department of Community Affairs, shall determine an appropriate phase-out schedule for all or part of the additional State aid.

    c. Annually, on or before March 4, each district board of education shall adopt, and submit to the commissioner for approval, together with such supporting documentation as the commissioner may prescribe, a budget that provides no less than the minimum permissible T&E budget, and no greater than the maximum T&E budget, plus categorical amounts required for a thorough and efficient education as established pursuant to the report, special revenue funds and debt service funds. Additional budget amounts in excess of the maximum T&E budget shall not be submitted for approval, but shall proceed as set forth in paragraph (1) of subsection d. of this section.

    d. (1) A district proposing a budget which includes spending which exceeds the maximum T&E budget established pursuant to section 13 of this act shall submit at the annual school budget election conducted pursuant to the provisions of P.L.1995, c.278 (C.19:60-1 et seq.), a separate proposal or proposals, including interpretive statements, specifically identifying the purposes for which the proposed funds shall be used, to the voters, who may, by voter approval, authorize proposed additional spending above the maximum T&E budget amount. The purposes identified in the interpretive statements shall not include any use of funds defined within the thoroughness and efficiency standards established pursuant to section 4 of this act. Any proposal rejected by the voters shall be submitted to the governing body of each of the municipalities included within the district for determination of such amounts, if any, as should be expended notwithstanding voter rejection. There shall be no appeal from the determination of the municipal governing body or bodies as to these amounts. In the case of a district having a board of school estimate, the question of additional spending shall be submitted to the board for determination of such amounts, if any, as should be expended above the maximum T&E budget. There shall be no appeal from the determination of the board as to these amounts.

    When the voters, municipal governing body or bodies, or the board of school estimate authorize additional spending, the district shall submit the resulting local leeway budget to the commissioner within 15 days of the action of the voters or municipal governing body or bodies, whichever is later, or of the board of school estimate as the case may be.

    (2) A district which adopts a budget set at or below the T&E budget established pursuant to section 13 of this act, need not submit the budget to the voters or board of school estimate for approval. The budget shall be deemed approved upon its adoption by the board of education following review by the commissioner pursuant to subsection c. of this section.

    The commissioner shall, for any Abbott district or any district factor group A district, when he deems it necessary to ensure implementation of the thoroughness standards, direct additional expenditures above the T&E budget in specific accounts and for specific purposes, up to the maximum T&E budget without approval of the local voters or board of school estimate, as applicable.

    (3) A district proposing a budget set below the maximum T&E budget, but including amounts in excess of the T&E budget established pursuant to section 13 of this act, shall submit, at the annual school election conducted pursuant to the provisions of P.L.1995, c.278 (C.19:60-1 et seq.), a separate proposal or proposals, including interpretive statements, specifically identifying the purposes for which the proposed funds shall be used, to the voters of the district, who may, by voter approval, authorize proposed additional spending above the T&E budget. Any proposal rejected by the voters shall be submitted to the governing body of each of the municipalities included in the district for determination of such amounts, if any, as should be expended notwithstanding voter rejection. Proposed amounts not approved by the municipal governing body or bodies, the sum of which does not exceed the maximum T&E budget when added to the T&E budget, may be appealed to the commissioner on grounds that the amounts are necessary for a thorough and efficient education. In the case of a district having a board of school estimate, the question of additional spending shall be submitted to the board for determination of such amounts, if any, as should be expended above the T&E budget. Proposed amounts not approved by a board of school estimate, the sum of which does not exceed the maximum T&E budget when added to the T&E budget, may be appealed to the commissioner on grounds that the amounts are necessary for a thorough and efficient education.

    When the voters, municipal governing body or bodies, or the board of school estimate authorize additional spending, the district shall resubmit its final approved budget or amend the T&E budget filed previously with the commissioner and submit the resulting amended budget to the commissioner within 15 days of the action of the voters, or municipal governing body or bodies , whichever is later, or of the board of school estimate as the case may be.

    e. Subsections c. and d. of this section shall not apply to State-operated school districts which shall be governed by the provisions of section 19 of P.L.1987, c.399 (C.18A:7A-52).

 

    6. (New section) a. The commissioner shall not approve any budget submitted pursuant to subsection c. of section 5 of this act unless he is satisfied that the district has adequately implemented within the budget the thoroughness and efficiency standards set forth pursuant to section 4 of this act. In those instances in which a district submits a budget set at less than its minimum T&E budget, the commissioner may, when he deems it necessary to ensure implementation of standards, direct additional expenditures, in specific accounts and for specific purposes, up to the district's T&E budget. A district which submits a budget set at less than its minimum T&E budget and which fails to meet core curriculum content standards in any school year shall be required to increase expenditures so as to meet at least the T&E minimum budget within the next two budget years. In those instances in which a district submits a budget at or above its minimum T&E budget, the commissioner may likewise, when he deems it necessary to ensure implementation of standards, direct additional expenditures, in specific accounts and for specific purposes, up to the T&E budget. In all cases, including those instances in which a district submits a budget above its T&E budget, up to and including its maximum T&E budget, the commissioner may direct such budgetary reallocations and programmatic adjustments, or take such other measures, as he deems necessary to ensure implementation of the required thoroughness and efficiency standards.

    b. In addition, whenever the commissioner determines, through the results of Statewide assessments conducted pursuant to law and regulation, or during the course of an evaluation of school performance conducted pursuant to section 10 of P.L.1975, c.212 (C.18A:7A-10), that a district, or one or more schools within the district, is failing to achieve the core curriculum content standards, the commissioner may summarily take such action as he deems necessary and appropriate, including but not limited to:

    (1) directing the restructuring of curriculum or programs;

    (2) directing staff retraining or reassignment;

    (3) conducting a comprehensive budget evaluation;

    (4) redirecting expenditures;

    (5) enforcing spending at the full per pupil T&E amount; and

    (6) notwithstanding any provisions of the "New Jersey Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-1 et seq.), to the contrary, reviewing and approving the terms of future collective bargaining agreements.

    Nothing in this section shall be construed to limit such general or specific powers as are elsewhere conferred upon the commissioner pursuant to law.

 

    7. (New section) a. If the amount of the budgeted general fund for the prebudget year is $100 million or less, an undesignated general fund balance in excess of 6% of that amount or $75,000, whichever is greater, shall be appropriated by a school district for the purpose of the budget prepared pursuant to section 5 of this act. If the amount of the budgeted general fund for the prebudget year exceeds $100 million, an undesignated general fund balance in excess of 6% of the first $100 million and in excess of 3% of the amount which exceeds $100 million shall be appropriated by a school district for the purpose of the budget prepared pursuant to section 5 of this act.

    b. Notwithstanding the provisions of subsection a. of this section, if the district has a formal plan to expand, renovate or construct school facilities, join a distance learning network, or make a major replacement or acquisition of instructional equipment within the subsequent five years, the district may, with the approval of the commissioner, transfer the excess undesignated general fund balance to the capital reserve account established pursuant to N.J.S.18A:21-3 for that purpose.

    c. If it is determined that the undesignated general fund balances at June 30 of any school year exceed those permitted under subsection a. of this section, the excess undesignated general fund balances shall be reserved and designated in the subsequent year's budget submitted to the commissioner pursuant to subsection c. of section 5 of this act.

    d. The commissioner may withhold State aid in an amount not to exceed the excess undesignated general fund balances for failure to comply with subsection c. of this section.

 

    8. (New section) The amounts payable to each school district pursuant to this act shall be paid by the State Treasurer upon the certification of the commissioner and warrant of the Director of the Division of Budget and Accounting. Five percent of the appropriation for core curriculum standards aid, supplemental core curriculum standards aid, special education, transportation, early childhood programs, demonstrably effective programs, bilingual, county vocational education program, distance learning network, and other aid pursuant to this act shall be paid on the first and fifteenth of each month from September through June. If a local board of education requires funds prior to the first payment, the board shall file a written request with the commissioner stating the need for the funds. The commissioner shall review each request and forward for payment those for which need has been demonstrated.

    Facilities funds shall be paid as required to meet due dates for payment of principal and interest. Each school district shall file an annual written request for facilities payments to the commissioner 30 days prior to the beginning of the fiscal year for which the appropriation is made. The request shall include the amount of interest bearing school debt, if any, of the municipality or district then remaining unpaid, together with the rate of interest payable thereon, the date or dates on which the bonds or other evidences of indebtedness were issued, and the date or dates upon which they fall due. In the case of a Type I school district, the board secretary shall secure the schedule of outstanding obligations from the clerk of the municipality.

 

    9. (New section) In order to receive any State aid pursuant to this act, a school district shall comply with the rules and standards for the equalization of opportunity which have been or may hereafter be prescribed by law or formulated by the commissioner pursuant to law, including those implementing this act or related to the core curriculum content standards required by this act, and shall further comply with any directive issued by the commissioner pursuant to section 6 of this act. The commissioner is hereby authorized to withhold all or part of a district's State aid for failure to comply with any rule, standard or directive. No State aid shall be paid to any district which has not provided public school facilities for at least 180 days during the preceding school year, but the commissioner, for good cause shown, may remit the penalty.

 

    10. (New section) a. Notwithstanding any other provision of this act to the contrary, the total stabilized aid for each district shall not be increased by more than the district's stabilization aid growth limit. In the event that total stabilized aid exceeds the prebudget total by a rate greater than the stabilization aid growth limit, the commissioner shall adjust the components of total stabilized aid so that they total exactly the prebudget total increased by the stabilization aid growth limit. For the 1997-98 school year, the prebudget total shall include foundation aid, transition aid, categorical aids for special education, bilingual education and county vocational education, and transportation aid paid for the 1996-97 school year. For the 1998-99 school year and thereafter, the prebudget total shall be the total for the same aid categories as included in total stabilized aid plus any stabilization aid the district has received pursuant to subsection b. of this section, as paid in the prebudget years. For the 1997-98 and 1998-99 school years, total stabilized aid shall include core curriculum standards aid, categorical aids for special education programs, bilingual education programs, county vocational programs and State facilities pupils, transportation aid, and aid for adult and postsecondary programs calculated pursuant to sections 15, 19, 20, 21, 24, 25, and 28 of this act. For the 1999-2000 school year and thereafter, total stabilized aid shall include core curriculum standards aid, supplemental core curriculum standards aid, distance learning network aid, categorical aids for special education programs, bilingual education programs, county vocational programs and State facilities pupils, early childhood program aid, demonstrably effective program aid, transportation aid, aid for adult and postsecondary programs, and academic achievement rewards calculated pursuant to sections 15 through 22, 24, 25, 28 and 29 of this act.

    b. Notwithstanding any other provision of this act to the contrary, the total of a district's stabilization aid, core curriculum standards aid, supplemental core curriculum standards aid, distance learning network aid, categorical aids for special education programs, bilingual education programs, county vocational programs and State facilities pupils, early childhood program aid, demonstrably effective program aid, transportation aid, aid for adult and postsecondary programs, and academic achievement rewards calculated pursuant to subsection a. of this section and sections 15 through 22, 24, 25, 28 and 29 of this act, shall not be decreased by more than 10% below the amounts paid for these categories in the prebudget year. In the event that the sum of the formula entitlements calculated pursuant to those sections is less than 90% of the prebudget total, stabilization aid shall be paid in the amount of the difference between 90% of the prebudget total and the sum of those entitlements. For the 1997-98 school year, the prebudget total shall include foundation aid, transition aid, aid for at-risk pupils, technology aid and categorical aids for special education, bilingual education and county vocational education, and transportation aid.

    c. For the 1997-98 school year, supplementary stabilization aid shall be paid to any district in which:

    (1) the total aid payable for the categories listed in subsection b. of this section is less than the prebudget total for the same aids by an amount which exceeds 1% of the prebudget net budget;

    (2) the total supplemental core curriculum standards aid is less than that decline;

    (3) resident enrollment exceeds resident enrollment for the prebudget year or the prebudget equalized tax rate exceeded the State average equalized tax rate by 10% or more; and

    (4) the decline in the aids listed in subsection b. of this section, after offset by any stabilization aid provided pursuant to that subsection, represents a decline of 10% from the prebudget total or is equal to or greater than $750,000.

    An eligible district shall be aided in the amount of its total aid decline, after offset by any stabilization aid provided pursuant to subsection b. of this section, or $2,000,000, whichever is less. The commissioner, in consultation with the Commissioner of the Department of Community Affairs and the Director of the Division of Local Government Services in the Department of Community Affairs, shall examine the fiscal ability of districts eligible for supplementary stabilization aid to absorb aid losses and shall make recommendations to the Legislature and the Governor regarding the continuation of supplementary stabilization aid.

    d. Any stabilization aid and supplementary stabilization aid paid pursuant to this section shall be applied as a reduction to the required local share of the school district or county vocational school district which receives the aid.

 

    11. (New section) The State's core curriculum standards aid contribution for the 1997-98 school year shall be $2,620,200,000. In subsequent years, the State's core curriculum standards aid contribution shall be the total Statewide core curriculum standards aid calculated pursuant to section 15 of this act for the prebudget year and prior to the application of section 10 indexed by the sum of 1.0, the CPI, and the State average enrollment growth percentage between the prebudget year and the budget year as projected by the commissioner.

 

    12. (New section) The commissioner shall establish, based on the standards issued pursuant to section 4 of this act, a basic per pupil T&E amount, and shall develop appropriate weights reflecting the differing costs of providing education at the kindergarten, elementary school, middle school, and high school levels, which weights shall be applied in determining a district's T&E budget as set forth in section 13 of this act. The T&E amount for the 1997-1998 school year shall be $ 6,720, which shall be adjusted for inflation by the CPI for the 1998-1999 school year. The weights for kindergarten, elementary (grades 1-5), middle (grades 6-8), and high school (grades 9-12) levels for the 1997-98 school year shall be 0.5, 1.0, 1.12 and 1.20 respectively. In subsequent years, the T&E amount and the school level weights shall be established biennially in the Report on the Cost of Providing a Thorough and Efficient Education, with the T&E amount adjusted for inflation by the CPI in the second year to which the report applies.

    For the 1997-98 school year, the T&E flexible amount shall be $336, and the T&E range shall be from $ 6,384 to $ 7,056. These figures shall be adjusted by the CPI for the 1998-99 school year. In subsequent years, the T&E range shall be established biennially in the Report on the Cost of Providing a Thorough and Efficient Education, with the T&E range adjusted for inflation by the CPI in the second year to which the report applies.

 

    13. (New section) a. The weighted enrollment for each school district and each county vocational school district shall be calculated as follows:

WENR=PWxPENR + EWxEENR + MWxMENR + HWxHENR

where

    PW is the T&E weight for kindergarten enrollment;

    EW is the T&E weight for elementary enrollment;

    MW is the T&E weight for middle school enrollment;

    HW is the T&E weight for high school enrollment;

    PENR is the resident enrollment for kindergarten;

    EENR is the resident enrollment for grades 1-5;

    MENR is the resident enrollment for grades 6-8; and

    HENR is the resident enrollment for grades 9-12.

For the purposes of this section, ungraded pupils shall be counted in their age-equivalent grade.

    b. The maximum T&E budget for each school district and each county vocational school district shall equal the greater of either:

    (1) MAXBUD=(TE + FL) x WENR

where

    TE is the T&E amount; and

    FL is the T&E flexible amount; or

    (2) For 1997-98, MAXBUD=PBNB x (1 + CPI) - (CAT+DEP+ECP)

where

    PBNB is the district's prebudget year net budget;

    CAT is the sum of aids payable in accordance with sections 19, 20, 21, 22, 24, 25, 28 and 29 of this act;

    DEP is the aid payable in accordance with section 18 of this act; and

    ECP is the aid payable in accordance with section 16 of this act; and,

    For subequent years, MAXBUD = (WENRx PBNB/PBWENR) x (1 + CPI) - (CAT+DEP+ECP) where

    PBNB is the district's prebudget year net T&E budget;

    CAT is the sum of aids payable in accordance with sections 19, 20, 21, 22, 24, 25, 28 and 29 of this act;

    DEP is the aid payable in accordance with section 18 of this act;

    ECP is the aid payable in accordance with section 16 of this act;

    WENR is the district's weighted enrollment; and

    PBWENR is the district's weighted enrollment for the prebudget year.

    c. The minimum T&E budget for each school district and each county vocational school district shall be calculated as follows:

MINBUD=(TE - FL) x WENR

except in the case of Abbott districts in which the minimum T&E budget shall be calculated as follows:

MINBUD=TExWENR

where

    TE is the T&E amount;

    FL is the T&E flexible amount; and

    WENR is the district's weighted enrollment.

    d. The T&E budget for each school district and each county vocational school district shall be calculated for 1997-98 as follows:

TEBUD= PBNB x (1 + CPI) - (CAT+DEP+ECP);

provided that TEBUD shall be neither less than MINBUD nor greater than MAXBUD and where

    PBNB is the district's prebudget year net budget;

    CAT is the sum of aids payable in accordance with sections 19, 20, 21, 22, 24, 25, 28 and 29 of this act;

    DEP is the aid payable in accordance with section 18 of this act; and

    ECP is the aid payable in accordance with section 16 of this act.

    In subsequent years, T&E budget shall be calculated as follows:

TEBUD=(WENR x PBNB/PBWENR) x (1 + CPI) - (CAT+DEP+ECP);

provided that TEBUD shall be neither less than MINBUD nor greater than MAXBUD and where

    PBNB is the district's prebudget year net T&E budget;

    CAT is the sum of aids payable in accordance with sections 19, 20, 21, 22, 24, 25, 28 and 29 of this act;

    DEP is the aid payable in accordance with section 18 of this act;

    ECP is the aid payable in accordance with section 16 of this act;

    WENR is the district's weighted enrollment; and

    PBWENR is the district's weighted enrollment for the prebudget year.

 

    14. (New section) Each school district and each county vocational school district shall receive core curriculum standards aid predicated on a local share determined by district property wealth and district income.

    a. Each district's local share shall be calculated as follows:

LSHARE=(TEAIDBUD/MINBUD) x (WRT x EQVAL + IRT x INC)/2

where

    TEAIDBUD is the T&E budget as determined pursuant to subsection d. of section 13 of this act, provided that TEAIDBUD shall not be greater than MAXBUD as calculated pursuant to paragraph (1) of subsection b. of section 13 of this act;

    MINBUD is the minimum T&E budget as determined pursuant to subsection c. of section 13 of ths act;

    WRT is the Statewide property value multiplier determined pursuant to subsection c. of this section;

    IRT is the Statewide income multiplier determined pursuant to subsection c. of this section;

    EQVAL is the district's prebudget year equalized valuation; and,

    INC is the district's income.

    b. The local share for each county vocational school district shall be calculated as follows:

    LSHARE=(COLSHARE/COTEBUD) x TEAIDBUD

where

    COLSHARE is the sum of the local shares for all school districts in the county calculated pursuant to subsection a. of this section;

    COTEBUD is the sum of the T&E budgets for all school districts in the county calculated pursuant to subsection d. of section 13 of this act, provided that each T&E budget shall not be greater than MAXBUD as calculated pursuant to paragraph (1) of subsection b. of section 13 of this act; and

    TEAIDBUD is the county vocational district's T&E budget calculated pursuant to subsection d. of section 13 of this act, provided that TEAIDBUD shall not be greater than MAXBUD as calculated pursuant to paragraph (1) of subsection b. of section 13 of this act.

    c. The values for the property value multiplier and the income multiplier shall be annually determined by the commissioner as follows:

    The property value multiplier shall be determined such that core curriculum standards aid equals the Statewide available core curriculum standards aid for all districts determined according to this act had each school district's local share equaled the product of the property value multiplier and the district's equalized valuation, and had each district's general fund levies equaled its local share.

    The income multiplier shall be determined such that core curriculum standards aid equals the Statewide available core curriculum standards aid for all districts determined according to this act had each school district's local share equaled the product of the income multiplier and the district's income, and had each district's general fund levies equaled its local share.

    In the event that these multipliers, when used in accordance with the provisions of this section and assuming that each district's general fund levy is equal to its local share, do not result in core curriculum standards aid for all districts equal to the Statewide available core curriculum standards aid, the commissioner shall adjust these multipliers appropriately, giving equal weight to each.

 

    15. (New section) Each district's core curriculum standards aid shall be calculated as follows:

    CCSAID=TEAIDBUD - LSHARE provided that CCSAID shall not be less than zero; and

where

    LSHARE is the district's local share calculated pursuant to section 14 of this act; and

    TEAIDBUD is the district's T&E budget calculated pursuant to subsection d. of section 13 of this act, provided that TEAIDBUD shall not be greater than MAXBUD as calculated pursuant to paragraph (1) of subsection b. of section 13 of this act.

    Each district's core curriculum standards aid for general fund expenses shall be expended to provide a thorough and efficient system of education consistent with the standards established pursuant to section 4 of this act.

 

    16. (New section) Early childhood program aid shall be distributed to all school districts with high concentrations of low-income pupils, for the purpose of providing full-day kindergarten and prekindergarten classes and other early childhood programs and services.

    For districts in which the concentration of low-income pupils is equal to or greater than 5% and less than 40%, aid shall be distributed according to the following formula:

    Aid= (ECM)A1 x Modified District Enrollment.

    For districts in which the concentration of low income pupils is equal to or greater than 40 %, aid shall be distributed according to the following formula for the purpose of expanding instructional services previously specified to 3 year olds, or of providing, in addition to the instructional services previously specified, transition and social services to primary grade students: 

    Aid= A2 X Modified District Enrollment

where

    A1=$465;

    A2=$750; and

    ECM = .25 if the concentration of low-income pupils is equal to or greater than 5% but less than 10%; .50 if the concentration of low-income pupils is equal to or greater than 10% but less than 15%; .75 if the concentration of low-income pupils is equal to or greater than 15% but less than 20%; and 1 if the concentration of low-income pupils is equal to or greater than 20% but less than 40%.

    For the 1998-1999 school year, the per pupil funding amounts shall be these amounts multiplied by the CPI. For subsequent years, the amounts shall be established biennially in the Report on the Cost of Providing a Thorough and Efficient Education and shall be derived from cost analyses of appropriate programmatic applications of these funds as identified in the report. The amounts shall be adjusted for inflation by the CPI in the second year of the period to which the report applies.

    County vocational school districts and limited purpose regional high school districts meeting the eligibility criteria of this section shall receive aid payable under this section as demonstrably effective program aid in addition to amounts received pursuant to section 18 of this act.

    Each district which receives early childhood program aid shall submit to the commissioner for approval an operational plan that shall be a subset of the district's comprehensive strategic plan, to establish preschool and full-day kindergarten for all four and five year olds by the 2001-2002 school year and to maintain them thereafter. Districts shall appropriate the aid in a special revenue fund for expenditure, but may place all or a portion of the aid in a capital reserve account during the first four years to establish facilities for these purposes. Districts which maintain progress consistent with the implementation plan may also use the funds for demonstrably effective programs pursuant to section 18 prior to establishing the programs required pursuant to this section. The commissioner shall establish guidelines to track the specific purposes of expenditures under this section.

 

    17. (New section) a. Each school district and county vocational school district which meets the following criteria shall be eligible to receive supplemental core curriculum standards aid:

    (1) the district's concentration of low-income pupils, relative to modified district enrollment, equals or exceeds 40%; and

    (2) the district's estimated minimum equalized tax rate exceeds that estimated for the State as a whole by more than 10%.

    b. Each district and school district which is determined to be eligible to receive aid pursuant to subsection a. of this section shall receive aid according to the following formula if the calculated result is greater than zero:

    (MEQTXRT - l.l0 X STEQTXRT) X EQVAL

where

    MEQTXRT is the district's estimated minimum equalized tax rate;

    STEQTXRT is the estimated minimum equalized tax rate for the State; and

    EQVAL is the district's equalized valuation.

 

    18. (New section) a. Demonstrably effective program aid shall be generated by individual schools and distributed to districts for the purpose of providing instructional, school governance, and health and social service programs to students enrolled in the generating school according to the following formulas: 

    Aid shall be distributed to districts with schools in which the concentration of low-income pupils is equal to or greater than 5% and less than 10% as follows:

    Aid = .25(B1) X SENR1

where

    SENR1 is the sum of school enrollments for all schools in the district enrolling low-income pupils at rates equal to or greater than 5% but less than 10%.

    Aid shall be distributed to districts with schools in which the concentration of low-income pupils is equal to or greater than 10% but less than 15% as follows:

    Aid = .50(B1) X SENR2

where

    SENR2 is the sum of school enrollments for all schools in the district enrolling low-income pupils at rates equal to or greater than 10% but less than 15%.

    Aid shall be distributed to districts with schools in which the concentration of low-income pupils is equal to or greater than 15% but less than 20% as follows:

    Aid = .75(B1) X SENR3

where

    SENR3 is the sum of school enrollments for all schools in the district enrolling low-income pupils at rates equal to or greater than 15% but less than 20%.

    Aid shall be distributed to districts with schools in which the concentration of low-income pupils is equal to or greater than 20% but less than 40% as follows:

    Aid= B1 X SENR4

where

    SENR4 is the sum of school enrollments for all schools in the district enrolling low-income pupils at rates equal to or greater than 20% but less than 40%.

    Aid shall be distributed to districts with schools in which the concentration of low-income pupils is equal to or greater than 40% as follows:

    Aid = B2 X SENR5

where

    SENR5 is the sum of the school enrollments for all schools in the district enrolling low-income pupils at rates equal to or greater than 40%; 

where

    B1  =         $300; and

    B2  =         $425.

    For the 1998-1999 school year, the per pupil funding amounts shall be these amounts multiplied by the CPI. For subsequent years, the amounts shall be established biennially in the Report on the Cost of Providing a Thorough and Efficient Education and be derived from cost analyses of appropriate programmatic applications as identified in the report. The amounts shall be adjusted for inflation by the CPI in the second year of the period to which the report applies.

    b. The State Board of Education, upon the recommendation of the commissioner, shall adopt regulations governing the use of demonstrably effective program aid and an accounting mechanism to ensure that use. The rules shall provide for:

    (1) Programs. A definition as recommended by the commissioner shall be established of the demonstrably effective programs and services which shall qualify for aid. The commissioner shall establish the per-pupil cost of providing these effective programs and services in the Report on the Cost of Providing a Thorough and Efficient Education.

    (2) Accountability. A recipient district shall be required to obtain the approval of the Department of Education for the planned uses of demonstrably effective program funds. A periodic public process shall be established by which specific programmatic uses for the funds shall be identified and approved. A district failing to use the funds in the prescribed manner shall be subject to rescission of aid and additional monetary penalties as established by the commissioner.

    (3) Monitoring. To facilitate State monitoring of the uses of the funds, districts shall be required to maintain separate program and service accounts in the special revenue section of district budgets and financial records in accordance with GAAP and specifications prescribed by the commissioner.

    c. The Department of Education shall develop, in collaboration with the Departments of Human Services and Health and Senior Services, as well as other appropriate State departments and agencies, mechanisms necessary to coordinate the provision of programs and services at the local level.

 

    19. (New section) a. Special education categorical aid for each school district, other than a county vocational school district, shall be calculated for the 1997-98 school year as follows:

    SPAID = (SE1+ 0.95 x SE2 + 0.7 x SE3 + 0.45 x SE4 + 0.2 x SE5) x SACF

where

    SE1 is the number of classified pupils resident in the district not to exceed 10% of resident enrollment;

    SE2 is the number of classified pupils resident in the district in excess of 10% resident enrollment but not to exceed 11% of resident enrollment;

    SE3 is the number of classified pupils resident in the district in excess of 11% resident enrollment but not to exceed 12% of resident enrollment;

    SE4 is the number of classified pupils resident in the district in excess of 12% resident enrollment but not to exceed 13% of resident enrollment;

    SE5 is the number of classified pupils resident in the district in excess of 13% resident enrollment but less than 14% of resident enrollment; and

    SACF is the additional cost factor for special education general categorical aid.

    b. Special education general categorical aid for the 1998-99 and subsequent school years shall be calculated as follows:

    SPAID = SPAIDE + SPAIDM + SPAIDH

where

    SPAIDE = (SEE1 + 0.95 x SEE2 + 0.70 x SEE3 + 0.45 x SEE4 + 0.20 x SEE5) x SACFE;

    SPAIDM = (SEM1 + 0.95 x SEM2 + 0.70 x SEM3 + 0.45 x SEM4 + 0.20 x SEM5) x SACFM;

    SPAID H = (SEH1 + 0.95 x SEH2 + 0.70 x SEH3 + 0.45 x SEH4 + 0.20 x SEH5) x SACFH;

    SEE1, SEM1, SEH1 are the numbers of classified pupils resident in the district of elementary, middle school, and high school equivalent age not to exceed 10% of the elementary, middle, and high school age equivalent resident enrollments;

    SEE2, SEM2, SEH2 are the numbers of classified pupils resident in the district of elementary, middle school, and high school equivalent age in excess of 10% of the elementary, middle, and high school age equivalent resident enrollments but not to exceed 11% of those same resident enrollments;

    SEE3, SEM3, SEH3, are the numbers of classified pupils resident in the district of elementary, middle school, and high school equivalent age in excess of 11% of the elementary, middle, and high school age equivalent resident enrollments but not to exceed 12% of those same resident enrollments;

    SEE4, SEM4, SEH4, are the numbers of classified pupils resident in the district of elementary, middle school, and high school equivalent age in excess of 12% of the elementary, middle, and high school age equivalent resident enrollments but not to exceed 13% of those same resident enrollments; and

    SEE5, SEM5, SEH5, are the numbers of classified pupils resident in the district of elementary, middle school, and high school equivalent age in excess of 13% of the elementary, middle, and high school equivalent resident enrollments but not to exceed 14% of those same resident enrollments.

    For the purposes of this section, classified pupil counts shall include pupils attending State developmental centers, State day training centers, State Division of Youth and Family Services' residential centers, and State residential mental health centers. Classified pupils of elementary equivalent age shall include classified preschool handicapped and kindergarten pupils.

    c. Special education general categorical aid for each county vocational school district shall be calculated for the 1997-98 school year and thereafter as follows:

    SPAID = SE X SACFH

where

    SE is the number of classified pupils resident in the district; and

    SACFH is the additional cost factor for special education general categorical aid.

    d. In those instances in which the cost of providing education for an individual classified pupil exceeds $30,000, after an assessment by the review panel of placements and placement costs for the applicable school year; in those cases in which the district must educate an extraordinary number of classified pupils; or in those instances in which the district is ordered to make a high cost placement by a tribunal of competent jurisdiction, the district may apply to the commissioner for additional aid. A panel established by the commissioner for this purpose shall review the district's application and determine whether to grant the district's request based on factors including, but not limited to: an assessment of whether the district is spending appropriate amounts of regular and special education funds on special education pupils; the facts of the particular case or cases at issue; the district's level of compliance with regulatory requirements; and the impact of the extraordinary costs on the district's budget.

 

    20. (New section) Bilingual education categorical aid for each school district and each county vocational school district shall be calculated as follows:

    BAID = BACF x B

where

    BACF is the additional cost factor for bilingual education categorical aid; and

    B is the number of bilingual education pupils in the district.

 

    21. (New section) County vocational categorical aid for each county vocational school district shall be calculated as follows:

    CVAID = CVACF x CV

where

    CVACF is the additional cost factor for county vocational categorical aid; and

    CV is the number of county vocational pupils in the district.

 

    22. (New section) a. Distance learning network aid shall be calculated for each school district and county vocational school district as follows:

    TECHAID = TECHACF x RES

where

    TECHACF is the additional cost factor for distance learning network aid; and

    RES is the district's resident enrollment.

    b. A Statewide distance learning network shall be established and each district shall be a member by the 2001-2002 school year. The distance learning network shall be used to create a Statewide infrastructure for the delivery of voice, video and data, and shall provide all districts with the opportunity to share curricular offerings so as to expand the scope, quality, richness and diversity of curricula in all school districts and contribute to the redefining of teaching and learning in the contemporary setting.

 

    23. (New section) The following additional cost factors shall be in effect for the purpose of calculating aid for the 1997-98 school year pursuant to sections 19 through 22 of this act:

    SACF = $ 4,798 for districts with resident pupils in grades K-6;

              = $ 4,824 for districts with resident pupils in grades K-8;

              = $4,638 for districts with resident pupils in grades K-12;

              = $ 4,452 for districts with resident pupils in grades 7-12; and

             = $ 4,221 for districts with resident pupils in grades 9-12.

    BACF = $1,073;

    CVACF = $1,662; and

    TECHACF = $40.

    For the 1998-99 school year, the additional cost factors shall be these cost factors inflated by the CPI, except that the following special education general categorical aid cost factors for 1997-98, for the purpose of this calculation, shall be as follows:

    SACFE = $4,779 x (1+CPI);

    SACFM = $4,913 x (1+CPI); and

    SACFH = $4,221 x (1+CPI).

    For subsequent years, the additional cost factors shall be established biennially in the Report on the Cost of Providing a Thorough and Efficient Education and adjusted for inflation by the CPI for the second year of the period to which the report applies.

 

    24. (New section) Each district's categorical aid for State facilities aid shall be determined by multiplying the pupils in each category by the following aid amounts:

    Juvenile community programs                              $10,052; and       Training school/secure care facility                       $ 4,050

    Annually by April 1, the Department of Corrections, the Department of Human Services, and the Juvenile Justice Commission shall each submit to the commissioner for approval, with respect to the facilities under their operational or supervisory authority, a budget for educational programs as set forth in section 8 of P.L.1979, c.207 (C.18A:7B-4) for the subsequent year, together with estimated enrollments and per pupil cost. In the subsequent year, pursuant to P.L.1979, c.207 (C.18A:7B-1 et seq.) for students resident in a district, approved per pupil amounts shall be deducted from each school district's State aid and remitted to the appropriate agency, except that for county juvenile detention centers, 50% of approved per pupil amounts shall be deducted and remitted to the Juvenile Justice Commission.

 

    25. (New section) a. Each district's State aid for transportation shall consist of base aid (BA) and an incentive factor (IF) determined as follows: 

    BA = (BA1 x IF) + BA2

where

    BA1=CP1 x P1+CD1 x P1 x D1; and

    BA2=CP2 xP2 + CD2 x P2 x D2;

    P1 is the total number of eligible regular education public pupils, regular nonpublic pupils, and special education pupils with no special transportation requirements;

    D1 is the average home-to-school mileage for P1 pupils;

    P2 is the total number of eligible pupils with special transportation requirements;

    D2 is the average home-to-school mileage for P2 pupils; and

    CP1, CD1, CP2 and CD2 are cost coefficients with values set forth in subsection b. of this section.

    IF is the incentive factor, which modifies base aid paid for pupils transported on regular vehicles according to each district's percentile rank in regular vehicle capacity utilization. For the school year 1997-98, IF = l. For the school year 1998-99, districts at or above the 90th percentile rank shall receive 100% of BA1, through the use of IF = 1.0, while those at or below the 10th percentile rank shall receive 50% of BA1 through the use of IF = 0.5. Districts ranking between the 10th and 90th percentiles of capacity utilization shall receive an intermediate proportion of BA1 according to the following formula:

    IF=0.5+0.5 x ((RKUTIL-0.1)/0.8)

where RKUTIL is the district's percentile rank in vehicle capacity utilization. The minimum, and maximum values of IF, and the formula for intermediate districts, shall be revised by the commissioner on a biennial basis with the first adjustment effective for the 2001-2002 school year.

    b. For 1997-98, the cost coefficients in subsection a.of this section shall have the following values:

    CP1 = $ 280.24;

    CD1 = $ 28.75;

    CP2 = $1,192.69; and

    CD2 = $ 80.12.

    For 1998-99, the coefficients shall be inflated by the CPI.

    In subsequent years, the coefficients shall be revised by the commissioner on a biennial basis and similarly adjusted by the CPI in intervening years.

    c. For the 1997-1998 school year, each district's base aid shall be prorated such that the overall distribution of base aid does not exceed that distributed in the 1996-1997 school year.

 

    26. (New section) State aid for school facilities shall be distributed to each school district according to the following formula:

    Aid is the sum of A for each issuance of facilities bonds authorized after July 1, 1997 and for each issuance of certificates of participation for lease purchase agreements approved after July 1, 1997,

where

    A = B x AC/P x CCSAID/TEAIDBUD x M, with AC/P =1 whenever AC/P would otherwise yield a number greater than one, and where

    B is the portion of the district's debt service or lease purchase payment for the individual issuance for the fiscal year that is generated by eligible school facilities, as defined in section 3 of this act; 

    AC is the total approved costs for facilities projects for which the individual issuance is made, determined pursuant to subsection a. of this section;

    P is the principal of the individual issuance;

    CCSAID is the district's core curriculum standards aid amount, determined pursuant to section 15 of this act;

    TEAIDBUD is the district's T&E budget determined pursuant to section 13 of this act, provided that TEAIDBUD shall not be greater than MAXBUD as calculated pursuant to paragraph (1) of subsection b. of section 13 of this act; and

    M is a factor representing the degree to which a district has fulfilled maintenance requirements, determined pursuant to subsection f. of this section.

    a. Approved costs for facilities shall be determined according to the following formulas where:

    EA is the percentage allowance for equipment and furnishings, determined pursuant to subsection c.of this section;

    AA is the percentage allowance for architect/engineering fees, determined pursuant to subsection d. of this section; and

    IA is the percentage allowance for issuance costs, determined pursuant to subsection e. of this section.

    (1) Construction of new facilities and additions to facilities, characterized by an increase in the square footage of the facility, shall generate State aid only if necessary for reasons of unhoused students.

    Approved costs = AU x C x (1 + EA + AA + IA)

where

AU is the approved area for unhoused students, determined pursuant to subsection b. of this section; and

    C is the projected area cost allowance.

    (2) For reconstruction, remodeling, alteration, modernization, renovation or repair of school facilities which were originally constructed by the district or which the district purchased more than five years previous to the date of issuance:

    Approved costs = R x A

    where R = the replacement costs of the facility = GA x C x (1 + EA + AA + IA) and where

    GA is the gross area (square footage) of the existing school facility being reconstructed, remodeled, altered, modernized, renovated or repaired;

    C is the projected area cost allowance; and

    A is a factor determined by the age of the school facility according to the following table:

    Age of the School Facility                                                 A

    Less than 20 years                                                             zero 

    20 years or more and less than 30 years                            80%

    30 years or more and less than 40 years                            60%

    40 years or more and less than 50 years                            40%

    Greater than 50 years                                                         20%

    For the purposes of this section the age of the school facility shall be a composite measure of the age of individual sections of the building determined in accordance with a method approved by the commissioner. The commissioner may adjust A if the district demonstrates that renovating the building is the only means by which the district is able to address health and safety conditions or obsolescence.

    (3) New construction done in lieu of renovations shall be aided as new construction, with approved costs determined pursuant to paragraph (1) of subsection a. of this section, only when the age of the building being replaced is 50 years or greater or in the case of extraordinary circumstances, to be determined by the commissioner. When new construction done in lieu of renovations qualifies for aid as new construction, the approved area for unhoused students shall be determined by the commissioner, with consideration of the existing facilities in the district.

    New construction done in lieu of renovations for facilities less than 50 years of age shall be aided in accordance with the methodology for aiding renovations, with the approved costs determined pursuant to paragraph (2) of subsection a. of this section.

    (4) For purchase of an existing facility, and renovations made to a purchased facility within five years of purchase: (a) purchase of an existing facility shall be aided as new construction, with approved costs determined pursuant to paragraph (1) of subsection a. of this section; and (b) the approved costs of any reconstruction, remodeling, alteration, modernization, renovation or repair made to the purchased facility within five years of purchase shall be determined as follows:

    Approved Costs = (ACP-PC) x (C/CP)

where

    APC is approved costs for facilities purchase pursuant to (a) of this paragraph;

    PC is purchase cost for the facility;

    C is projected area cost allowance at the time of issuance; and

    CP is projected area cost allowance at the time of issuance for the purchase.

    Approved costs so calculated shall not be less than zero.

    b. The approved area for unhoused students shall be determined according to the following formula:

    AU = (UE x SE) + (UM x SM) + (UH x SH)

where

    UE, UM, UH are the numbers of unhoused students at the elementary, middle, and high school, respectively; and

    SE, SM, SH are the area allowances per student at the elementary, middle, and high school grade cohorts, respectively.

    In fiscal years 1997-98 and 1998-99, the area allowance per student shall be as follows:

    Grade Cohorts                               Area Allowance Per Student  Elementary/                                        

Grades Kindergarten-5 (E)                             80 square feet (SE)

Middle: Grades 6-8 (M)                                 100 square feet (SM)

High: Grades 9-12 (H)                                    120 square feet (SH)

    The commissioner shall develop for the Report on the Cost of Providing a Thorough and Efficient Education, models of an elementary, middle, and high school consistent with the core curriculum school delivery models in the report and sufficient for the achievement of the core curriculum content standards. The space allowances per student in subsequent years shall be derived from these models.

    c. Determination of the percentage allowance for equipment and furnishing (EA) shall be made according to the following table:

Type of School                                               Allowance (EA)

Elementary School ( Grades K-5 )                 2.3 %

Middle School ( Grades 6-8 )                         3.2 %

High School ( Grades 9-12 )                           4.1 %

Special Education Services Pupils Only         5.0 %

    For the purposes of this section, in the event that the school shall house students in more than one of the first three categories listed above, the percentages shall be applied based upon the proportionate number of students in each category in accordance with a method approved by the commissioner.

    d. Determination of the percentage allowance for architect/engineering fees (AA) shall be made according to the following table:

    For new construction and additions:

Approved Area for Unhoused Students          Allowance (AA)

(AU)

Under 3,700                                                    10.00 %

3,700                                                               9.00 %

7,350                                                               8.75 %

11,000                                                             8.50 %

14,650                                                             8.25 %

18,300                                                             8.00 %

25,700                                                             7.75 %

36,700                                                             7.50 %

55,000                                                             7.25 %

73,400                                                             7.00 %

101,000                                                           6.75 %

128,450                                                           6.50 %

156,000                                                           6.25 %

183,500 and above                                          6.00 %

    For the purposes of this section, when the approved area for unhoused students is between any two successive amounts listed above, the allowance for architect/engineering fees shall be determined by summing the two amounts obtained by first applying the greater percentage to the lesser approved area amount on the list and then applying the lower percentage to the amount of the approved area in excess of the lesser amount on the list, and then dividing the sum by the actual approved area for unhoused students. For reconstruction, remodeling, alteration, modernization, renovation or repair, the allowance shall be one and one-half of the percentages calculated pursuant to this paragraph.

    e. The percentage allowance for issuance costs (IA) for projects financed from the proceeds of school bonds shall be one and one-half percent, except that IA shall be neither less than $50,000/(AU x C) or $50,000/(GA x C), whichever is applicable, nor greater than $150,000/(AU x C) or $150,000/(GA x C), whichever is applicable.

    The allowance for issuance costs for projects financed by a lease purchase agreement shall be three and one-half percent, except that IA for these projects shall be neither less than $50,000/(AU x C) or $50,000/(GA x C), whichever is applicable, nor greater than $350,000/(AU x C) or $350,000/(GA x C), whichever is applicable.

    f. The maintenance factor (M) shall be 1.0 except when one of the following conditions applies, in which case the maintenance factor shall be as specified:

    (1) Effective ten years from the date of the enactment of this act, the maintenance factor for aid for reconstruction, remodeling, alteration, modernization, renovation or repair, shall be zero for all issuances for work performed on a facility for which the district fails to demonstrate a net investment over the previous ten years in maintenance of the facility of at least two percent of the replacement cost of the facility, determined pursuant to paragraph (2) of subsection a. of this section using the projected area cost allowance of the month ten years preceding the month in which the school bonds are authorized or in which a lease purchase agreement is approved;

    (2) For new construction, or additions approved or authorized after July 1, 1997, beginning in the fourth year after occupancy of the facility, the maintenance factor shall be reduced according to the following schedule for all issuances for which the district fails to demonstrate in the prior fiscal year an investment in maintenance of the facility or facilities for which the issuance generated funding of at least two-tenths of one percent of the replacement cost of the facility, determined pursuant to paragraph (2) of subsection a. of this section.

Maintenance Percentage                     Maintenance Factor (M)

.199% - .151%                                    75%

.150% - .100%                                    50%

Less than .100%                                 Zero

 

    27. (New section) For each issuance of facilities bonds or certificates of participation in a lease purchase project authorized before July 1, 1997,

    Aid = the sum of A

where

    A = Bx CCSAID/TEAIDBUD

and where

    B is the portion of the district's debt service payment for the individual issuance for the fiscal year;

    CCSAID is the district's core curriculum standards aid amount, determined pursuant to section 15 of this act; and

    TEAIDBUD is the district's T&E budget determined pursuant to section 13 of this act, provided that TEAIDBUD shall not be greater than MAXBUD as calculated pursuant to paragraph (1) of subsection b. of section 13 of this act.

 

    28. (New section) For the 1997-98 school year, State aid shall be distributed to adult high schools and county vocational schools on an unweighted per pupil basis. The commissioner shall conduct a review of existing programs to determine programmatic definitions and establish appropriate per pupil amounts. For the 1998-99 school year, these amounts shall be distributed as inflated by the CPI. Thereafter, per pupil funding amounts shall be established in a supplement to the Report on the Cost of Providing a Thorough and Efficient Education.

 

    29. (New section) a. There is hereby established in the Department of Education the Academic Achievement Reward Program. The purpose of the program shall be to provide rewards to districts having one or more schools that meet criteria for absolute success or significant progress towards high student academic achievement, pursuant to subsection b. of this section. To determine eligibility for the absolute success and the significant progress rewards, schools shall be sorted into three groupings by enrollment for each of the Statewide assessments established pursuant to the provisions of P.L.1979, c.241 (C.18A:7C-1 et seq.). Schools located in districts that were penalized in the prebudget year under the "School Efficiency Program Act," P.L.1995, c.236 (C.18A:7E-6 et seq.), shall not be eligible for either reward.

    b. Schools with 90% of student enrollment performing at or above the passing scores on one or more of the Statewide assessments as provided in subsection a. of this section shall be eligible for the absolute success reward. Schools that do not qualify for the absolute success reward shall be eligible for the significant progress reward. All eligible schools shall be grouped into five bands based on the initial passing rate for each of the three Statewide assessments. The 10% in each band with the highest level of improvement from the previous year's passing rate shall be eligible for the significant progress reward.

    c. The Legislature shall make an annual appropriation to effectuate the purposes of this section. The amount appropriated shall be divided proportionally according to the average size of schools within each enrollment grouping among all districts with schools determined to be eligible for either the absolute success or the significant progress reward. Funds awarded shall be payable to the school district in which the school is located and shall be included within the district's net budget.

 

    30. (New section) a. When State aid is calculated for any year and a part of any district becomes a new school district or a part of another school district, including a county vocational school district established after January 1, 1991, or comes partly under the authority of a regional board of education, the commissioner shall adjust the State aid calculations among the districts affected, or between the district and the county vocational school district or the regional board, as the case may be, on an equitable basis in accordance with the intent of this act.

    Whenever an all-purpose regional school district is approved by the voters during any calendar year, the regional district shall become effective on the succeeding July 1 for the purpose of calculating State aid, and the commissioner shall request supplemental appropriations for such additional State aid as may be required. After a regional school district becomes entitled to State aid, it shall continue to be entitled to aid as calculated for a regional district notwithstanding the subsequent consolidation of the constituent municipalities of the regional school district.

    b. For a period of five years following regionalization, each regional school district formed after the effective date this act shall be eligible to receive supplemental State aid equal to the difference between the regional district's core curriculum standards aid calculated pursuant to section 15 of this act for the budget year and the sum of core curriculum standards aid received by each constituent district of that regional school district in the year prior to regionalization, multiplied by the transition weight. For the purpose of this section, the transition weight shall equal 1.0 for the first year following regionalization, .80 for the second year following regionalization, .60 for the third year following regionalization, .40 for the fourth year following regionalization, and .20 for the fifth year following regionalization.

 

    31. (New section) Annually, on or before October 20, the secretary of the board of education, with approval of the superintendent of schools, or if there is no superintendent of schools, with the approval of the county superintendent of schools, shall file with the commissioner a report stating the number of pupils enrolled by grade, the number of these pupils classified as eligible for special education services, bilingual education, and the number of pupils in State facilities, county vocational schools, State college demonstration schools, evening schools, other public or private schools to which the district is paying tuition, or who are receiving home instruction on the last school day prior to October 16. In addition, districts shall file annual reports providing such information as the commissioner may require for pupils receiving special education services.

 

    32. Section 3 of P.L.1975, c.212 (C.18A:7A-3) is amended to read as follows:

    3. For the purposes of this act, unless the context clearly requires a different meaning:

    "Administrative order" means a written directive ordering specific corrective action by a district which has shown insufficient educational progress within a reasonable period of time in meeting goals and standards.

    ["Goals" means a written statement of educational aspirations for learner achievement and the educational process stated in general terms.]

    "Joint Committee on the Public Schools" means the committee created pursuant to P.L.1975, c.16 (C.52:9R-1 et seq.).

    ["Needs assessment" means a written analysis of the current status of an educational system in terms of achieving its goals.

    "Objective" means a written statement of the intended outcome of a specific educational process.

    "Standards" means the process and stated levels of proficiency used in determining the extent to which goals and objectives are being met.] (cf: P.L.1990, c.52, s.30)

 

    33. Section 10 of P.L.1975, c.212 (C.18A:7A-10) is amended to read as follows:

    10. For the purpose of evaluating the thoroughness and efficiency of all the public schools of the State, the commissioner, with the approval of the State board and after review by the Joint Committee on the Public Schools, shall develop and administer a uniform, Statewide system for evaluating the performance of each school. [Such a] The system shall be based [in part on annual testing for achievement in basic skill areas, and in part] on such [other] means as the commissioner deems proper in order to (a) determine pupil status and needs, (b) ensure pupil progress, and (c) assess the degree to which the [educational objectives have been] thoroughness and efficiency standards established pursuant to section 4 of P.L. , c. (C. ) (now pending before the Legislature as this bill) are being achieved.

(cf: P.L.1975, c.212, s.10)

 

    34. Section 11 of P.L.1975, c.212 (C.18A:7A-11) is amended to read as follows:

    11. Each school district shall make an annual report of its progress in conforming to the [goals, objectives and standards developed pursuant to this act] standards for the evaluation of school performance adopted pursuant to section 10 of P.L.1975, c.212 (C.18A:7A-10). Each district's annual report shall include but not be limited to:

    a. Demographic data related to each school;

    b. Results of designated assessment programs, including Statewide [and district testing conducted at each school, and the result of the district evaluation of pupil proficiency in basic communication and computational skills] assessment programs established pursuant to law and regulation;

    c. Information on each school's fiscal operation, including the budget of each school;

    d. [Results of each school's effectiveness in achieving State, district and school goals and objectives applicable to the pupils, including the effectiveness of any "basic skills improvement plan";] (Deleted by amendment, P.L. , c. ).

    e. Plans and programs for professional improvement;

    f. Plans to carry out innovative [or experimental] educational programs designed to improve the quality of education; [and]

    g. Recommendations for school improvements during the ensuing year ;and

    h. Such additional information as may be prescribed by the commissioner.

    Additionally, the State Board of Education may [from time to time] require each district to submit a facilities survey, including current use practices and projected capital project needs[, but not more frequently than once every 2 years].

    The district reports shall be submitted to the commissioner [by July 1 of each year and he] annually on a date to be prescribed by the commissioner, who shall make them the basis for an annual report to the Governor and the Legislature, describing the condition of education in New Jersey, the efforts of New Jersey schools in meeting the standards of a thorough and efficient education, the steps underway to correct deficiencies in school performance, and the progress of New Jersey schools in comparison to other state education systems in the United States.

    [In addition to such annual report the commissioner shall, 4 years from the effective date of this amendatory act, report to the Governor and the Joint Committee on the Public Schools assessing the effectiveness of this amendatory act in improving the proficiency of the pupils of this State in basic communications and computational skills. Within 6 months of receiving such report the Joint Committee on the Public Schools shall recommend to the Legislature any necessary or desirable changes or modifications in this amendatory act.]

(cf: P.L.1976, c.97, s.4)

    35. Section 14 of P.L.1975, c.212 (C.18A:7A-14) is amended to read as follows:

    14. a. (1) The commissioner shall review the results of the evaluations conducted and reports submitted pursuant to sections 10 and 11 of P.L.1975, c.212 (C.18A:7A-10 and 18A:7A-11). The commissioner shall establish a mechanism for parent, school employee and community resident input into the review process. If the commissioner shall find that a school district satisfies the evaluation criteria, the commissioner shall recommend that the State board certify the school district for a period of seven years as providing a thorough and efficient system of education. If the commissioner finds that a school district can correct the deficiency or deficiencies without additional diagnostic monitoring or technical assistance, the commissioner may certify the school district with the condition that the district correct the deficiency within a period of time to be determined by the commissioner. If the commissioner shall find that a school district has failed to show sufficient progress toward achieving the [goals, guidelines, objectives and standards, including the State goals and any local interim goals concerning pupil proficiency in reading, writing, mathematics, science and health, geography, history, civics, physical education and the arts established in and pursuant to this act] thoroughness and efficiency standards established pursuant to section 4 of P.L. ,c. (C. ) (now pending before the Legislature as this bill), the commissioner shall advise the local board of education of [such] that determination, and shall direct that the district enter level II monitoring, as defined pursuant to law and regulation. Nothing herein shall preclude the commissioner from taking the steps set forth in section 6 of P.L. , c. (C. ) (now pending before the Legislature as this bill) upon a finding that the district is failing to meet core curriculum content standards.

    (2) The board of education of a school district which is directed to enter level II monitoring may appeal that decision to the State Board of Education. The State board may refer the hearing of that appeal to a committee of not less than three of its members, which committee shall hear the appeal and report thereon, recommending its conclusions, to the board and the board shall decide the appeal by resolution in open meeting. A determination of the appeal by the State board shall be considered final.

    b. (1) When a district enters level II monitoring, the commissioner shall establish procedures whereby parents, school employees and community residents may meet with the commissioner or the commissioner's designee to discuss their concerns and the county superintendent shall appoint an external review team whose members shall be qualified by training and experience to examine the conditions in the specific district. In conjunction with the Department of Education, the team, at the direction of the commissioner, shall either examine only those aspects of the district's operations bearing on the areas of deficiency, or shall examine all aspects of the district's operation, including but not limited to education, governance, management and finance. In addition, the team shall examine conditions in the community which may adversely affect the ability of the pupils to learn and the team may recommend measures to mitigate the effects of those conditions. The team shall report its findings and conclusions, including directives to be utilized by the district in the preparation of a corrective action plan to achieve certification and recommendations as to the technical assistance which the district will require in order to effectively implement the corrective action plan, to the commissioner. The commissioner shall direct the district to respond to the report of the external review team in establishing a corrective action plan. The corrective action plan shall be submitted to and approved by the commissioner. The commissioner shall assure that the local district's budget provides the resources necessary to implement the approved plan, including the necessary technical assistance. The entire cost of those activities associated with the review team shall be paid by the Department of Education. The commissioner shall also have the authority to order necessary budgetary reallocations within the district, or such other measures as he deems necessary and appropriate. Further, nothing herein shall preclude the commissioner from taking the steps set forth in section 6 of P.L. , c. (C. ) (now pending before the Legislature as this bill) upon a finding that the district is failing to meet core curriculum content standards.

    (2) If the commissioner finds that the district is unsuccessful in correcting the deficiencies noted in the evaluation process, the commissioner shall direct that the district enter level III monitoring, as defined pursuant to law and regulation. However, if the commissioner determines that a district is making reasonable progress toward correcting deficiencies, the commissioner may grant an extension for a specific period of time. During this extension the district will remain under level II monitoring. At the end of the extension the commissioner shall determine whether the district is eligible for certification or if the district must be directed to enter level III monitoring.

    c. (1) When a district which has had a comprehensive examination of all aspects of the district's operations by an external review team pursuant to subsection b. of this section is directed to enter level III monitoring the commissioner shall prepare an administrative order directing the corrective actions which shall be taken by the district based upon the findings and conclusions of the level II external review team and the department's monitoring of the level II plan. The commissioner shall insure that technical assistance is provided to the district in order to implement those actions. The commissioner shall also have the power to order necessary budgetary reallocations within the district, or such other measures as the commissioner deems necessary and appropriate. Further, nothing herein shall preclude the commissioner from taking the steps set forth in section 6 of P.L. , c.   (C. ) (now pending before the Legislature as this bill) upon a finding that the district is failing to meet core curriculum content standards.

    (2) When a district which has not had a comprehensive examination of all aspects of the district's operations by an external review team pursuant to subsection b. of this section is directed to enter level III monitoring, the commissioner shall designate the county superintendent to appoint an external review team whose members shall be qualified by training and experience to examine the conditions in the specific district. In conjunction with the Department of Education, the team shall examine all aspects of the district's operations including but not limited to education, governance, management and finance. The team shall report its findings and conclusions, including directives to be utilized in the preparation of a corrective action plan to achieve certification, to the commissioner. The commissioner shall prepare an administrative order directing the corrective actions which shall be taken by the district based upon the findings and conclusions of the level III external review team and the department's monitoring of the level II plan. The commissioner shall insure that technical assistance is provided to the district in order to implement those actions. The commissioner shall also have the power to order necessary budgetary reallocations within the district, or such other measures as the commissioner deems necessary and appropriate. Further, nothing herein shall preclude the commissioner from taking the steps set forth in section 6 of P.L. , c. (C. ) (now pending before the Legislature as this bill) upon a finding that the district is not meeting core curriculum content standards.

    (3) The board of education of a school district which is directed to enter level III monitoring may appeal that decision to the State Board of Education. The State board may refer the hearing of that appeal to a committee of not less than three of its members, which committee shall hear the appeal and report thereon, recommending its conclusions, to the board and the board shall decide the appeal by resolution in open meeting. A determination of the appeal by the State board shall be considered final.

    (4) If the commissioner finds, based upon the findings and directives of the level II or level III review team and the Department of Education, that conditions within the district may preclude the successful implementation of a corrective action plan or that the district has failed to make reasonable progress in the implementation of a corrective action plan to achieve certification, the commissioner shall direct that a comprehensive compliance investigation be conducted by the Department of Education. If the commissioner directs that a comprehensive compliance investigation be conducted, the commissioner may order any necessary action to insure the security of the books, papers, vouchers and records of the district.

    d. Whenever a district in level II monitoring is directed to establish a corrective action plan or whenever a district in level III monitoring shall be required to implement an approved corrective action plan pursuant to this section, the commissioner shall determine the cost to the district of implementation of those portions of the corrective action plan which are directly responsive to the district's deficiencies as identified in the report of the external review team or, where applicable, by the commissioner. In making this fiscal assessment, the commissioner shall identify those aspects of the corrective action plan which are already contained in the district's current expense budget. Where appropriate, the commissioner shall reallocate funds within the district's budget to support the corrective action plan. Once reallocated, any transfers among line items of the district's budget may occur only with the commissioner's approval. The commissioner shall further determine the amount of additional revenue, if any, needed to implement the corrective action plan and shall recertify a budget for the district.

    e. A comprehensive compliance investigation shall entail a thorough and detailed examination of a district's educational programs, fiscal practices, governance and management. Based on the investigation, the commissioner shall issue a report which will document any irregularities and list all those aspects of the corrective action plan established pursuant to subsections b. and c. of this section which have not been successfully implemented by the district or the conditions which would preclude the district from successfully implementing a plan. A copy of this report shall be given to the district. The commissioner shall also order the local board to show cause why an administrative order, subject to the provisions of section 15 of P.L.1975, c.212 (C.18A:7A-15) and section 1 of P.L.1987, c.399 (C.18A:7A-34) should not be implemented. The plenary hearing before a judge of the Office of Administrative Law, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), upon said order to show cause shall be conducted in the manner prescribed by subdivision B of article 2 of chapter 6 of Title 18A of the New Jersey Statutes.

    In the proceeding the State shall have the burden of showing that the recommended administrative order is not arbitrary, unreasonable or capricious.

(cf: P.L.1991, c.3, s.3)

 

    36. Section 1 of P.L.1991, c.3 (C.18A:7A-14.1) is amended to read as follows:

    1. The Legislature finds and declares that:

    a. It is the constitutional obligation of the Legislature to provide all children in New Jersey with a thorough and efficient system of free public schools;

    b. The breadth and scope of such a system [were] are defined by the Legislature [in P.L.1975, c.212] through the commissioner and the State board pursuant to P.L. , c. (C. ) (now pending before the Legislature as this bill) so as to insure quality educational programs for all children;

    c. [In the rapidly changing educational and occupational environment of the 1990s it] It is imperative that the program in every school district in this State includes all of the major elements identified as essential for that system consistent with standards adopted pursuant to section 10 of P.L.1975, c.212.(C.18A:7A-10);

    d. It is the responsibility of the State to insure that any school district which is shown to be deficient in one or more of these major elements takes corrective actions without delay in order to remedy those deficiencies;

    e. This responsibility can [best] be fulfilled, addition to the mechanisms for ensuring compliance established pursuant to section 6 of P.L. , c. (C. ) (now pending before the Legislature as this bill), through an effective and efficient system of evaluation and monitoring which will insure quality and comprehensive instructional programming in every school district and provide for immediate and direct corrective action to insure that identified deficiencies do not persist, and which does so within the context of the maximum of local governance and management and the minimum of paperwork and unnecessary procedural requirements.

(cf: P.L.1991, c.3, s.1)

 

    37. Section 17 of P.L.1987, c.399 (C.18A:7A-50) is amended to read as follows:

    17. The State district superintendent of a State-operated school district shall develop a budget on or before March 22 and shall present this budget to the board of education to elicit the board's comments and recommendations. This budget shall conform in all respects with the requirements of chapter 22 of Title 18A of the New Jersey Statutes and shall be subject to the limitations on spending by local school districts otherwise required by [P.L.1990, c.52 (C.18A:7D-1 et al.)] P.L. , c. (C. ) (now pending before the Legislature as this bill). (cf: P.L.1995 ,c.278, s.38)

 

    38. Section 19 of P.L.1987, c.39 (18A:7A-52) is amended to read as follows:

    19. a. After the public hearing provided for by section 18 of [this amendatory and supplementary act] P.L.1987, c.399 (C.18A:7A-51) but not later than April 8, the State district superintendent shall fix and determine the amount of money necessary to be appropriated for the ensuing school year and shall certify the amounts to be raised by special district tax for school purposes as well as the sum necessary for interest and debt redemption, if any, to the county board of taxation and the amount or amounts so certified shall be included in the taxes assessed, levied and collected in the municipality or municipalities comprising the district. [Within 15 days after the certification by the State district superintendent, the governing body of the municipality or municipalities comprising the district shall notify the State district superintendent of its intent to appeal to the commissioner the amount determined to be necessary to be appropriated for each item appearing in the proposed budget. The commissioner, upon receipt of the appeal from the governing body of the municipality or municipalities comprising the district and upon completion of the hearing process, shall determine the amount necessary for the district to provide a thorough and efficient educational program including the implementation of the plan to correct deficiencies] This amount shall not exceed the maximum T&E budget.

    b. [Notwithstanding that the State-operated district shall receive State education aid for its budget as prepared by the State district superintendent and as approved by the commissioner pursuant to subsection a. of this section, the governing body of the municipality or municipalities comprising the district may apply to the Director of the Division of Local Government Services in the Department of Community Affairs for a determination that the local share of revenues needed to support the district's budget results in an unreasonable tax burden. The director's findings of an unreasonable tax burden in a State-operated school district may be based on the overall school, county and municipal tax rates including any overlapping obligation of the community, cash deficit, insufficient percentage of tax collections, insufficient collection of other revenues, overanticipation of the revenues of prior years, nonliquidation of interfund transfers, reliance on emergency authorizations, continual rollover of tax anticipation notes, or other factors indicating a constrained ability to raise sufficient revenues to meet its budgetary requirements. In addition, the director's review may include but need not be limited to an analysis of the ratable base of the community, the per capita income of the residents of the district and the percentage of residents on a fixed income, cash reserves and receivables of the district including the availability of any deferred tax, the ability of the community to dispose of property for which no public purpose is anticipated and all other current revenue raising capacity including procedures for collection which may permit greater anticipation of revenue.] (Deleted by amendment, P.L. , c. ).

    c. [Based upon his review, the director shall certify the amount of revenues which can be raised locally to support the budget of the State-operated district. Any difference between the amount which the director certifies and the total amount of local revenues required by the budget approved by the commissioner shall be paid by the State in the fiscal year in which the expenditures are made, subject to the availability of appropriations.] (Deleted by amendment, P.L. , c.      ).

    d. Notwithstanding the provisions of subsection a. of this section, a State-operated school district which, as of the 1996-97 school year or upon the establishment of State-operation, is spending at a level higher than the district's maximum T&E budget, shall develop a plan, approved by the commissioner, to phase out any local leeway spending within the next four school years. In accordance with its approved phase-out plan, a State-operated district may certify an amount above the maximum T&E budget.

(cf: P.L.1992, c.159, s.8)

 

    39. Section 6 of P.L.1979, c.207 (C.18A:7B-2) is amended to read as follows:

    6. a. For each child who is resident in a district and in a State facility ,or in a county juvenile detention center under the supervisory authority of the Juvenile Justice Commission established pursuant to section 2 of P.L.1995, c.284 (C.52:17B-170), on the last school day prior to October 16 [of the prebudget year], the Commissioner of Education shall deduct from the State aid payable to [such] that district an amount equal to the [State foundation amount plus the appropriate special education aid] approved per pupil cost established pursuant to the provisions of P.L. , c. (C ) (now pending before the Legislature as this bill); except that for county juvenile detention centers, 50% of the per pupil cost shall be deducted.

    b. If, for any district, the amount to be deducted pursuant to subsection a. of this section is greater than State aid payable to the district, the district shall pay to the Department of Education the difference between the amount to be deducted and the State aid payable to the district.

    c. The amount deducted pursuant to subsection a. of this section and the amount paid to the Department of Education pursuant to subsection b. of this section shall be forwarded to the Department of Human Services if the facility is operated by or under contract with that department, or to the Department of Corrections if the facility is operated by or under contract with that department, or to the Juvenile Justice Commission established pursuant to section 2 of P.L.1995, c.284 (C.52:17B-170) if the facility is operated by that commission, and shall serve as payment by the district of tuition for the child. [This amount] In the case of county juvenile detention centers, the tuition shall be deemed to supplement funds currently provided by the county for this purpose under chapter 10 and chapter 11 of Title 9 of the Revised Statutes, and a county shall not decrease its level of contribution as a result of the payment of tuition pursuant to this section. Amounts so deducted shall be used solely for the support of educational programs and shall be maintained in a separate account for that purpose. No district shall be responsible for the tuition of any child admitted to a State facility after the last school day prior to October 16 [of the prebudget year].

(cf: P.L.1995, c.280, s.24)

 

    40. Section 9 of P.L.1979, c.207 (C.18A:7B-5) is amended to read as follows:

    9. The Commissioner of Education, with the approval of the State Board of Education, shall promulgate rules and regulations to ensure a thorough and efficient education, consistent with the provisions of P.L. , c. (C. ) (now pending before the Legislature as this bill), for the children in State facilities and county juvenile detention centers. In the case of county juvenile detention centers, the Office of Education in the Juvenile Justice Commission shall develop, in consultation with the commissioner, appropriate standards for the provision of such education by the county for facilities established under chapter 10 and chapter 11 of Title 9 of the Revised Statutes.

    The commissioner shall continually review the operation of educational programs in State facilities and county juvenile detention centers. If he finds that the operation of any of these programs does not meet the educational standard required by the regulations, he shall direct that a remedial plan be prepared by the education director of the facility in which the program is located, together with the director of educational services of the department which is operating or contracting with the facility. The plan shall be submitted to the Commissioner of Education for his approval. If he approves the plan, it shall be implemented in a timely and effective manner. If he finds the plan or its implementation to be insufficient, he may, until the insufficiency is corrected, withhold and place in a special account any State aid funds which otherwise would have been forwarded pursuant to section 6 of this act.

(cf: P.L.1979, c.207, s.9)

 

    41. Section 11 of P.L.1979, c.207 (C.18A:7B-7) is amended to read as follows:

    11. a. Any parent or guardian of a pupil in a State facility or county juvenile detention center, and any pupil in a State facility or county juvenile detention center between 18 and 20 years of age, may request an administrative review on matters of educational classification or educational program.

    b. The administrative review process shall include the following sequence:

    (1) A conference with teaching staff members or child study team personnel;

    (2) A conference with the Director of Educational Services of the Department of Human Services [or], the Department of Corrections, or the Juvenile Justice Commission, whichever is appropriate;

    (3) A hearing by the Commissioner of Education pursuant to law and regulation.

    c. The due process rights available to children, parents and guardians in the public schools on matters of educational classification or educational program shall be available to children, parents and guardians in State facilities and county juvenile detention centers.

    d. The placement of a child in a particular State facility or county juvenile detention center shall not be subject to an administrative review or hearing pursuant to this section.

(cf: P.L.1979, c.207, s.11)

 

    42. Section 19 of P.L.1979, c.207(C.18A:7B-12) is amended to read as follows:

    19. For school funding purposes, the Commissioner of Education shall determine district of residence as follows:

    a. The district of residence for children in foster homes shall be the district in which the foster parents reside. If a child in a foster home is subsequently placed in a State facility or by a State agency, the district of residence of the child shall then be determined as if no such foster placement had occurred.

    b. The district of residence for children who are in residential State facilities, or who have been placed by State agencies in group homes, private schools or out-of-State facilities, shall be the present district of residence of the parent or guardian with whom the child lived prior to his most recent admission to a State facility or most recent placement by a State agency.

    If this cannot be determined, the district of residence shall be the district in which the child resided prior to such admission or placement.

    c. The district of residence for children whose parent or guardian temporarily moves from one school district to another as the result of being homeless shall be the district in which the parent or guardian last resided prior to becoming homeless. For the purpose of this amendatory and supplementary act, "homeless" shall mean an individual who temporarily lacks a fixed, regular and adequate residence.

    d. If the district of residence cannot be determined according to the criteria contained herein, or if the criteria contained herein identify a district of residence outside of the State, the State shall assume fiscal responsibility for the tuition of the child. The tuition shall equal the [State foundation amount plus the appropriate special education aid, if any] approved per pupil cost established pursuant to P.L. , c. (C.        ) (now pending before the Legislature as this bill). This amount shall be appropriated in the same manner as other State aid under this act. The Department of Education shall pay the amount to the Department of Human Services, the Department of Corrections or the Juvenile Justice Commission established pursuant to section 2 of P.L.1995, c.284 (C.52:17B-170) or, in the case of a homeless child, to the school district in which the child is enrolled.

(cf: P.L.1995, c.280, s.26)

 

    43. Section 20 of P.L.1979, c.207 (C.18A:7B-13) is amended to read as follows:

    20. Beginning in the school year [1981-82] 1996-97, the Commissioner of Education shall annually report to the Legislature, describing the condition of educational programs in State facilities and county juvenile detention centers, the efforts of the Departments of Corrections and Human Services and the Juvenile Justice Commission in meeting the standards of a thorough and efficient education in these facilities, the steps underway to correct any deficiencies in their educational programs, and the progress of the educational programs in New Jersey State facilities and county juvenile detention centers in comparison with those in the State facilities and county juvenile detention centers of other states. At that time the commissioner shall recommend to the Legislature any necessary or desirable changes or modifications in [this act] P.L.1979, c.207 (C.18A:7B-1 et seq.).

(cf: P.L.1979, c.207, s.20)

 

    44. Section 2 of P.L.1979, c.241 (C.18A:7C-2) is amended to read as follows:

    2. By July 1, 1981, pursuant to guidelines established by the Commissioner of Education, each board of education shall establish standards for graduation from its secondary schools. [Said] The standards shall [be appropriate to local goals and objectives and shall] include, but need not be limited to:

    a. Satisfactory performance on the Statewide assessment test as provided for in section 1 of [this act] P.L.1979, c.241 (C.18A:7C-1);

    b. Demonstration of proficiencies in those subject areas and skills identified by the board as necessary for graduation other than those assessed by the Statewide assessment tests.

    The Commissioner of Education shall monitor local plans for the assessment of proficiencies required for graduation including techniques and instruments to be used to determine pupil proficiency; required programs designed to provide the opportunity for pupils to progress toward the mastery of proficiencies required for graduation; and remediation programs for pupils who fail to meet graduation proficiency standards in order to assure compliance with the requirement of [this act] P.L.1979, c.241 (C.18A:7C-1 et seq.).

    The Commissioner of Education shall, upon request of the local board, provide such technical assistance as may be necessary to aid a district in the planning, implementation and evaluation of graduation standards.

(cf: P.L.1979, c.241, s.2)

 

    45. N.J.S.18A:13-23 is amended to read as follows:

    18A:13-23. The annual or special appropriations for regional districts, including the amounts to be raised for interest upon, and the redemption of, bonds payable by the district, shall be apportioned among the municipalities included within the regional district, as may be approved by the voters of each municipality at the annual school election or a special school election, upon the basis of:

    a. the portion of each municipality's equalized valuation allocated to the regional district, calculated as described in the definition of equalized valuation in section 3 of [P.L.1990, c.52 (C.18A:7D-3)] P.L. , c. (C. ) (now pending before the Legislature as this bill);     b. the proportional number of pupils enrolled from each municipality on the 15th day of October [of the prebudget year] in the same manner as would apply if each municipality comprised separate constituent school districts; or

    c. any combination of apportionment based upon equalized valuations pursuant to subsection a. of this section or pupil enrollments pursuant to subsection b. of this section.

(cf: P.L.1993, c.67, s.1)

 

    46. N.J.S.18A:21-3 is amended to read as follows:

    18:A:21-3. [Such] The account shall be established by resolution of the board of school estimate or the board of education, as the case may be, in such form as shall be prescribed by the commissioner, a true copy of which shall be filed with the department. For any school year an amount not to exceed 1.5 percent of the amount of [foundation aid anticipated in the capital outlay budget] core curriculum standards aid, as calculated pursuant to section [10 of P.L.1990, c.52 (C.18A:7D-10)] 15 of P.L. , c. (C. ) (now pending before the Legislature as this bill), plus any additional sum expressly approved by the voters of the district or the board of school estimate, and any [free] undesignated general fund balance amount, authorized under section [3 of P.L.1993, c.80 (C.18A:7D-27.1)] 7 of P.L. , c. (C.     ) (now pending before the Legislature as this bill), may be appropriated to the account. The account shall also include the


earnings attributable to the investment of the assets of the account.

(cf: P.L.1993, c.80, s.2)

 

    47. N.J.S.18A:21-4 is amended to read as follows:

    18A:21-4. A board of education may in any school year draw against its capital reserve account, up to the amount of the balance therein, to the extent that [such] the withdrawal is anticipated as a revenue in the school budget for the then current school year or approved by the commissioner for good cause; provided, that no money drawn from the account may be used for current expenses of the general fund or debt service payments but shall be used exclusively for capital expenses of the general fund or capital projects fund when expressly authorized as part of a referendum.

(cf: P.L.1990, c.52, s.40)

 

    48. N.J.S.18A:22-8 is amended to read as follows:

    18A:22-8. The budget shall be prepared in such detail and upon such forms as shall be prescribed by the commissioner and to it shall be annexed a statement so itemized as to make the same readily understandable, in which shall be shown:

    a. In tabular form there shall be set forth the following:

    (1) The total expenditure for each item for the preceding school year, the amount appropriated for the current school year adjusted for transfers as of February 1 of the current school year, and the amount estimated to be necessary to be appropriated for the ensuing school year, indicated separately for each item as determined by the commissioner;

    (2) The amount of the surplus account available at the beginning of the preceding school year, at the beginning of the current school year and the amount anticipated to be available for the ensuing school year;

    (3) The amount of revenue available for budget purposes for the preceding school year, the amount available for the current school year as of February 1 of the current school year and the amount anticipated to be available for the ensuing school year in the following categories:     (a) Total to be raised by local property taxes

    (b) Total State aid

    (i) [ Foundation]Core curriculum standards aid

    (ii) Special education aid

    (iii) Transportation aid

    (iv) [At-risk aid

    (v) Bilingual aid

    (vi)] Early childhood program aid

    (v) Demonstrably effective program aid

    (vi) Supplemental core curriculum standards aid

    (vii) Distance learning network aid

    (viii Bilingual aid

    (ix) Other (detailed at the discretion of the commissioner)

    [(vii) Transition aid]

    (c) Total federal aid

    (i) Elementary and Secondary Education Act of 1965 (20 U.S.C. §2701 et seq.)

    (ii) Handicapped

    (iii) Impact Aid

    (iv) Vocational

    (v) Other (detailed at the discretion of the commissioner)

    (d) Other sources (detailed at the discretion of the commissioner).     [(4) Transfers between current expense and capital outlay for the preceding school year, the current school year as of February 1 of that year and transfers anticipated for the ensuing school year.]

    b. (Deleted by amendment, P.L.1993, c.117).

    c. In the event that the total expenditure for any item of appropriation is equal to $0.00 for: (1) the preceding school year, (2) the current school year, and (3) the amount estimated to be necessary to be appropriated for the ensuing school year, that item shall not be required to be published pursuant to N.J.S.18A:22-11.

    d. The instruction function of the budget shall be divided into elementary (K-5), middle school (6-8), and high school (9-12) cost centers, each of which shall be further divided by the core curriculum content areas.

(cf: P.L.1993, c.117, s.1)

 

    49. Section 3 of P.L.1979, c.294 (C.18A:22-8.2) is amended to read as follows:

    3. No transfer may be made under this section from appropriations or surplus accounts for:

    a. Interest and debt redemption charges;

    b. Capital reserve account;

    c. Items classified as general fund expenses except to other items so classified, or to the capital projects fund to supplement the proceeds from a bond authorization or lease purchase agreement upon application to and a formal finding by the commissioner that the transfer is in the best interests of both the students and taxpayers of the district after consideration of alternative corrective actions.

(cf: P.L.1993, c.83, s.5)

 

    50. Section 4 of P.L.1979, c.294 (C.18A:22-8.3) is amended to read as follows:

    4. On or after November 15 of each school year, all adjustments to State aid amounts payable for the succeeding school year, pursuant to [P.L.1990, c.52 (C.18A:7D-1 et al.)] P.L. , c. (C. ) (now pending before the Legislature as this bill), due to corrections in the count of pupils enrolled in various grades and programs, shall be made to the State aid amounts payable during the school year following the succeeding school year.

(cf: P.L.1990, c.52, s.45)

 

    51. N.J.S.18A:22-14 is amended to read as follows:

    18A:22-14. At or after [said] the public hearing but not later than April 8, the board of school estimate of a type I district shall fix and determine by official action taken at a public meeting of the board the amount of money necessary to be appropriated for the use of the public schools in the district for the ensuing school year, exclusive of the amount which shall have been apportioned to it by the commissioner and which shall be no less than the amount determined by the board of education within its T&E budget pursuant to the provisions of section 5 of P.L. , c. (C. ) (now pending before the Legislature as this bill), and shall make two certificates of [such] the amount signed by at least three members of the board, one of which shall be delivered to the board of education and the other to the governing body of the district.

    Within 15 days after receiving [such] the certificate the board of education shall notify the board of school estimate and governing body of the district if it intends to appeal to the commissioner the board of school estimate's determination as to [the] any additional amount of money requested, the sum of which does not exceed the maximum T&E budget when added to the district's T&E budget pursuant to the provisions of section 5 of P.L. , c. (C. ) (now pending before the Legislature as this bill), necessary to be appropriated for the use of the public schools of the district for the ensuing school year.

(cf: P.L.1992, c.159, s.14)

 

    52. N.J.S.18A:22-26 is amended to read as follows:

    18A:22-26. At or after [said] the public hearing but not later than April 8, the board of school estimate of a type II district having a board of school estimate shall fix and determine by a recorded roll call majority vote of its full membership the amount of money necessary to be appropriated for the use of the public schools in [such] the district for the ensuing school year, exclusive of the amount which shall be apportioned to it by the commissioner for [said] the year and which amount shall be no less than the amount determined by the board of education within its T&E budget pursuant to the provisions of section 5 of P.L. , c. (C. ) (now pending before the Legislature as this bill) and shall make a certificate of [such] the amount signed by at least a majority of all members of [such] the board, which shall be delivered to the board of education and a copy thereof, certified under oath to be correct and true by the secretary of the board of school estimate, shall be delivered to the county board of taxation on or before April 15 in each year and a duplicate of [such] the certificate shall be delivered to the board or governing body of each of the municipalities within the territorial limits of the district having the power to make appropriations of money raised by taxation in the municipalities or political subdivisions and to the county superintendent of schools and [such] the amount shall be assessed, levied and raised under the procedure and in the manner provided by law for the levying and raising of special school taxes voted to be raised at an annual or special election of the legal voters in type II districts and shall be paid to the treasurer of school moneys of the district for such purposes.

    Within 15 days after receiving [such] the certificate the board of education shall notify the board of school estimate and governing body of each municipality within the territorial limits of the school district , and the commissioner, if it intends to appeal to the commissioner the board of school estimate's determination as to [the] any additional amount of money requested, the sum of which does not exceed the maximum T&E budget when added to the district's T&E budget pursuant to the provisions of section 5 of P.L. , c. (C. ) (now pending before the Legislature as this bill), necessary to be appropriated for the use of the public schools of the district for the ensuing school year.

(cf: P.L.1992, c.159, s.15)

 

    53. N.J.S.18A:22-32 is amended to read as follows:

    18A:22-32. At or after the public hearing on the budget but not later than 18 days prior to the election, the board of education of each type II district having no board of school estimate shall fix and determine by a recorded roll call majority vote of its full membership the amount of money to be raised pursuant to section 5 of P.L. , c.     (C. ) (now pending before the Legislature as this bill) and any additional amounts to be voted upon by the legal voters of the district at the annual election pursuant to section 5 of that act, which sum or sums shall be designated in the notice calling [such] the election as required by law.

(cf: P.L.1995, c.278, s.42)

 

    54. N.J.S.18A:22-33 is amended to read as follows:

    18A:22-33. The board of education of each type II district not having a board of school estimate [shall] may, at each annual school election, submit to the voters of the district, [the] any amount of money fixed and determined in excess of its T&E budget, excluding therefrom the sum or sums stated therein to be used for its T & E budget and for interest and debt redemption charges, in the manner provided by law, to be voted upon for the use of the public schools of the district for the ensuing school year, which amount shall be stated in the notice of the election, and the legal voters of the district shall determine at [such] the election, by a majority vote of those voting upon the proposition, the sum or sums, not exceeding those stated in the notice of the election, to be raised by special district tax for said purposes, in the district during the ensuing school year and the secretary of the board of education shall certify the excess amount so determined upon, if any, and the sums so stated for the district's T&E budget and interest and debt redemption charges, to the county board of taxation of the county within two days following the [date] certification of the election results and the amount or amounts so certified shall be included in the taxes assessed, levied and collected in the municipality or municipalities comprising the district for such purposes.

(cf: P.L.1993, c.83, s.9)

 

    55. N.J.S.18A:22-37 is amended to read as follows:

    18A:22-37. If the voters reject any of the items submitted at the annual school election, the board of education shall deliver the [proposed school] rejected additional spending proposals, approved additional spending proposals, and the district's T&E budget to the governing body of the municipality, or of each of the municipalities included in the district within two days thereafter. The governing body of the municipality, or of each of the municipalities, included in the district shall, after consultation with the board, and by May 19, determine the amount of additional spending proposals rejected by the voters which, in the judgment of [said] the body or bodies, [is necessary to]shall be appropriated in addition to the amount necessary for a thorough and efficient education and additional spending proposals approved by the voters, for each item appearing in [such] the budget, [to provide a thorough and efficient system of schools in the district,] and certify to the county board of taxation the totals of the amount so determined to be necessary for each of the following:

    a. General fund expenses of schools; or

    b. Appropriations to capital reserve account.

    Within 15 days after the governing body of the municipality or of each of the municipalities included in the district shall make [such] the certification to the county board of taxation, the board of education shall notify [such] the governing body or bodies if it intends to appeal to the commissioner the amounts which when added to the district's T&E budget and any additional amounts approved by the voters or the governing body or bodies do not exceed the maximum T&E budget which [said] the body or bodies determined to be necessary to be appropriated [for each item appearing in the proposed school budget]. (cf: P.L.1995, c.94, s.2)

    56. N.J.S.18A:22-38 is amended to read as follows:

    18A:22-38. If [said] the governing body or bodies [shall] fail [so] to certify any amount not in excess of the maximum T&E budget, determined by [them] the local board of education to be necessary for any item rejected at the annual school election, or in the event that the governing bodies of the municipalities comprising a school district, shall certify different amounts, then upon petition of the board of education, the commissioner shall determine the amount or amounts which in his judgment, are necessary to be appropriated, for each of the items appearing in the budget, submitted to [such] the governing body or bodies, to provide a thorough and efficient system of public schools in the district, and certify to the county board of taxation the totals of the amount [so] determined to be necessary for each of the following:

    a. General fund expenses of schools; or

    b. Appropriations to capital reserve account;

and the amounts [so] certified shall be included in the taxes to be assessed, levied and collected in [such] the municipality or municipalities for [such] those purposes.

(cf: P.L.1993, c.83, s.11)

 

    57. Section 2 of P.L.1976, c.39 (C.18A:24-87) is amended to read as follows:

    2. For the purposes of this act, unless the context clearly requires a different meaning:

    a. "Commissioner" means the Commissioner of Education of the State of New Jersey;

    b. "Debt service" means and includes payments of principal and interest upon qualified bonds issued pursuant to the terms of this act or amounts required in order to satisfy sinking fund payment requirements with respect to such bonds;

    c. "Local Finance Board" means the Local Finance Board in the Division of Local Government Services in the Department of Community Affairs, established pursuant to P.L.1974, c.35 (C.52:27D-18.1);

    d. "Paying agent" means any bank, trust company or national banking association having the power to accept and administer trusts, named or designated in any qualified bond of a school district or municipality as the agent for the payment of the principal of and interest thereon and shall include the holder of any sinking fund established for the payment of such bonds;

    e. "Qualified bonds" means those bonds of a school district or municipality authorized and issued in conformity with the provisions of this act;

    f. "State board" means the State Board of Education of the State of New Jersey;

    g. "School district" means a Type I, Type II, regional, or consolidated school district as defined in Title 18A of the New Jersey Statutes;

    h. "State school aid" means the funds made available to local school districts pursuant to [section 4 of P.L.1990, c.52 (C.18A:7D-4)] sections 15 and 17 of P.L. , c. (C. ) (now pending before the Legislature as this bill) .

(cf: P.L.1990, c.52, s.47)

 

    58. Section 7 of P.L.1985, c.321 (C.18A:29-5.6) is amended to read as follows:

    7. a. The actual salary paid to each teacher under each district's or educational services commission's 1984-85 approved salary guide shall be considered a base salary for purposes of this act.

    b. In addition to all other funds to which the local district or educational services commission is entitled under the provisions of [P.L.1990, c.52 (C.18A:7D-1 et al.)] P.L. , c. (C. ) (now pending before the Legislature as this bill) and other pertinent statutes, each board of education or board of directors of an educational services commission shall receive from the State during the 1985-86 academic year and for two years thereafter an amount equal to the sum of the amounts by which the actual salary prescribed for each current full-time teaching staff member under the salary schedule adopted by the local board of education or board of directors for the 1984-85 academic year in the manner prescribed by law is less than $18,500.00, provided that the teaching staff member has been certified by the local board of education or board of directors as performing his duties in an acceptable manner for the 1984-85 school year pursuant to N.J.A.C.6:3-1.19 and 6:3-1.21. Each local board of education or board of directors shall receive from the State on behalf of the newly employed full-time teaching staff members for the 1985-86 academic year and for two years thereafter an amount equal to the sum of the amounts by which the actual salary prescribed for each newly employed full-time teaching staff member under the salary schedule adopted by the local board of education or board of directors for the 1984-85 academic year is less than $18,500.00. All adjustments for teachers who are hired or who leave employment during the school year and who make less than $18,500.00 shall be made in the school year following the year in which they were hired or left employment.               c. For the 1988-89 academic year and thereafter, this act shall be funded in accordance with the recommendations of the State and Local Expenditure and Revenue Policy Commission created pursuant to P.L.1984, c.213. If the commission's recommendations for funding this program are not enacted into law, this act shall be funded in accordance with subsection d. of this section and sections 9 and 10 of this act.

    d. For the purpose of funding this act in the 1988-89 academic year as determined pursuant to this section, each teacher's salary based on the 1984-85 salary guide shall be increased by the product of the base salary multiplied by 21%.

    e. In each subsequent year the product of the base salary times 7% shall be cumulatively added to each teacher's salary as calculated in subsection d. of this section in determining the aid payable. In any year subsequent to the 1987-88 academic year in which the base salary plus the cumulative increases under this section exceed $18,500.00, aid will no longer be payable.

(cf: P.L.1990, c.52, s.48)

 

    59. Section 3 of P.L.1988, c.12 (C.18A:38-7.9) is amended to read as follows:

    3. a. In the event the designated district is composed of more than one municipality, when allocating equalized valuations or district incomes, pursuant to the provisions of section 3 of [P.L.1990, c.52 (C.18A:7D-3)] P.L. , c. (C. ) (now pending before the Legislature as this bill), for the purpose of calculating State aid, persons attending schools in the designated district pursuant to section 2 of this act shall be assigned to each municipality comprising the designated district in direct proportion to the number of persons ordinarily attending school from each municipality in the designated district without considering the persons attending pursuant to this act.     b. In the event the designated district is a constituent district of a limited purpose regional district, when allocating equalized valuations or district incomes, pursuant to the provisions of section 3 of [P.L.1990, c.52 (C.18A:7D-3)] P.L. , c. (C. ) (now pending before the Legislature as this bill), for the purpose of apportioning the amounts to be raised by taxes for the limited purpose regional district of which the designated district is a constituent district, persons attending schools in the designated district pursuant to section 2 of this act shall not be counted.

(cf: P.L.1990, c.52, s.49)

 

    60. Section 4 of P.L.1988, c.105 (C.18A:38-7.13) is amended to read as follows:

    4. The county superintendent of schools shall, within 120 days of the effective date of this act, certify to the Commissioner of Education which local school district shall be the designated district for persons of school age residing in a multi-district federal enclave. The district certified as the designated district shall count all pupils who reside in a multi-district federal enclave in the resident enrollment of the district for all State aid purposes and shall be designated by the commissioner to receive State aid and all federal funds provided under Pub.L.81-874, (20 U.S.C. §236 et seq.)

    For the purposes of calculating State aid pursuant to [P.L.1990, c.52 (C.18A:7D-1 et al.)] P.L. , c. (C. ) (now pending before the Legislature as this bill), whenever pupils residing in one district are attending the schools of the designated district, the district income of the resident district shall be allocated between the resident district and the designated district in proportion to the number of pupils residing in the resident district attending the schools of the resident district and designated district.

(cf: P.L.1990, c.52, s.82)

 

    61. N.J.S.18A:38-19 is amended to read as follows:

    18A:38-19. Whenever the pupils of any school district are attending public school in another district, within or without the state, pursuant to this article, the board of education of the receiving district shall determine a tuition rate to be paid by the board of education of the sending district to an amount not in excess of the actual cost per pupil as determined consistent with the thoroughness and efficiency standards under rules prescribed by the commissioner and approved by the state board, and [such ] the tuition shall be paid by the [custodian] treasurer of school moneys of the sending district out of any moneys in his hands available for [current] general fund expenses of the district upon order issued by the board of education of the sending district, signed by its president and secretary, in favor of the [custodian] treasurer of school moneys of the receiving district.

    Any receiving district which in the 1996-97 school year has a sum of local property taxes, foundation aid and transition aid which exceeds the district's maximum T&E budget for the 1997-98 school year shall phase out the excess amount from the actual cost per pupil over a four year period provided it receives approval from its local voters or the municipal governing body or bodies to maintain a local leeway budget in each of the subsequent four years. If at any time during the four year period the local leeway budget is eliminated, whether by the receiving district, the local voters, or the municipal governing body or bodies, no excess amounts shall be included thereafter. The excess amount shall be phased out as follows:

    a. 80% of the original excess amount or the local leeway budget, whichever is less, may be included in the 1997-98 school year;

    b. 60% of the original excess amount or the local leeway budget, whichever is less, may be included in the 1998-99 school year;

    c. 40% of the original excess amount or the local leeway budget, whichever is less, may be included in the 1999-2000 school year; and

    d. 20% of the original excess amount or the local leeway budget, whichever is less, may be included in the 2000-2001 school.

(cf: N.J.S.18A:38-19)

 

    62. Section 2 of P.L.1981, c.57 (C.18A:39-1a) is amended to read as follows:

    2. Beginning in the 1993-94 school year and in each subsequent year, the maximum amount of nonpublic school transportation costs per pupil provided for in N.J.S.18A:39-1 shall be increased or decreased in direct proportion to the increase or decrease in the State transportation aid per pupil in the year prior to the prebudget year compared to the amount for the prebudget year. As used in this section, State transportation aid per pupil shall equal the total State transportation aid payments made pursuant to section [16 of P.L.1990, c.52 (C.18A:7D-18)] 25 of P.L. , c. (C. ) (now pending before the Legislature as this bill) divided by the number of pupils eligible for transportation.

(cf: P.L.1992, c.33, s.2)

 

    63. N.J.S.18A:39-1.1 is amended to read as follows:

    18A:39-1.1. In addition to the provision of transportation for pupils pursuant to N.J.S.18A:39-1 and N.J.S.18A:46-23, the board of education of any district may provide, by contract or otherwise, in accordance with law and the rules and regulations of the State board, for the transportation of other pupils to and from school.

    Districts shall not receive State transportation aid pursuant to section [16 of P.L.1990, c.52 (C.18A:7D-18)] 25 of P.L. , c. (C.    ) (now pending before the Legislature as this bill) for the transportation of pupils pursuant to this section.

(cf: P.L.1990, c.52, s.52)

 

    64. N.J.S.18A:39-15 is amended to read as follows:

    18A:39-15. If the county superintendent of the county in which the districts are situate shall approve the necessity, the cost, and the method of providing [such] joint transportation and the agreement whereby the same is to be provided, each [such] board of education providing joint transportation shall be entitled to State transportation aid pursuant to section [16 of P.L.1990, c.52 (C.18A:7D-18)] 25 of P.L. , c. (C. ) (now pending before the Legislature as this bill).

(cf: P.L.1990, c.52, s.53)

 

    65. Section 11 of P.L.1987, c.387, (C.18A:40A-18) is amended to read as follows:

    11. The Commissioner of Education, in consultation with the Commissioner of Health, shall develop and administer a program which provides for the employment of substance awareness coordinators in certain school districts.

    a. Within 90 days of the effective date of this act, the Commissioner of Education shall forward to each local school board a request for a proposal for the employment of a substance awareness coordinator. A board which wants to participate in the program shall submit a proposal to the commissioner which outlines the district's plan to provide substance abuse prevention, intervention and treatment referral services to students through the employment of a substance awareness coordinator. Nothing shall preclude a district which employs a substance awareness coordinator at the time of the effective date of this act from participating in this program. The commissioner shall select school districts to participate in the program through a competitive grant process. The participating districts shall include urban, suburban and rural districts from the north, central and southern geographic regions of the State with at least one school district per county. In addition to all other State aid to which the local district is entitled under the provisions of [P.L.1990, c.52 (C.18A:7D-1 et al.)] P.L. , c. (C. ) (now pending before the Legislature as this bill) and other pertinent statutes, each board of education participating in the program shall receive from the State, for a three year period, the amount necessary to pay the salary of its substance awareness coordinator.

    b. The position of substance awareness coordinator shall be separate and distinct from any other employment position in the district, including, but not limited to district guidance counselors, school social workers and school psychologists. The State Board of Education shall approve the education and experience criteria necessary for employment as a substance awareness coordinator. The criteria shall include a requirement for certification by the State Board of Examiners. In addition to the criteria established by the State board, the Department of Education and the Department of Health shall jointly conduct orientation and training programs for substance awareness coordinators, and shall also provide for continuing education programs for coordinators.

    c. It shall be the responsibility of substance awareness coordinators to assist local school districts in the effective implementation of this act. Coordinators shall assist with the in service training of school district staff concerning substance abuse issues and the district program to combat substance abuse; serve as an information resource for substance abuse curriculum development and instruction; assist the district in revising and implementing substance abuse policies and procedures; develop and administer intervention services in the district; provide counseling services to pupils regarding substance abuse problems; and, where necessary and appropriate, cooperate with juvenile justice officials in the rendering of substance abuse treatment services.

    d. The Commissioner of Education, in consultation with the Commissioner of Health, shall implement a plan to collect data on the effectiveness of the program in treating problems associated with substance abuse and in reducing the incidence of substance abuse in local school districts. Six months prior to the expiration of the program authorized pursuant to this section, the Commissioner of Education shall submit to the Governor and the Legislature an evaluation of the program and a recommendation on the advisability of its continuation or expansion to all school districts in the State.

(cf: P.L.1990, c.52, s.54)

 

    66. N.J.S.18A:46-14 is amended to read as follows:

    18A:46-14. The facilities and programs of education required under this chapter shall be provided by one or more of the following:

    a. A special class or classes in the district, including a class or classes in hospitals, convalescent homes, or other institutions;

    b. A special class in the public schools of another district in this State or any other state in the United States;

    c. Joint facilities including a class or classes in hospitals, convalescent homes or other institutions to be provided by agreement between one or more school districts;

    d. A jointure commission program;

    e. A State of New Jersey operated program;

    f. Instruction at school supplementary to the other programs in the school, whenever, in the judgment of the board of education with the consent of the commissioner, the handicapped pupil will be best served thereby;

    g. Sending children capable of benefiting from a day school instructional program to privately operated day classes, in New Jersey or, with the approval of the commissioner to meet particular circumstances, in any other state in the United States, the services of which are nonsectarian whenever in the judgment of the board of education with the consent of the commissioner it is impractical to provide services pursuant to subsection a., b., c., d., e. or f. otherwise;     h. Individual instruction at home or in school whenever in the judgment of the board of education with the consent of the commissioner it is impracticable to provide a suitable special education program for a child pursuant to subsection a., b., c., d., e., f. or g. otherwise.

    Whenever a child study team determines that a suitable special education program for a child cannot be provided pursuant to subsection a., b., c., d., e., f., g. or h. of this section, and that the most appropriate placement for that child is in an academic program in an accredited nonpublic school within the State or, to meet particular circumstances, in any other state in the United States, the services of which are nonsectarian, and which is not specifically approved for the education of handicapped pupils, that child may be placed in that academic program by the board of education, with the consent of the commissioner, or by order of a court of competent jurisdiction. An academic program which meets the requirements of the child's Individual Education Plan as determined by the child study team and which provides the child with a thorough and efficient education, shall be considered an approved placement for the purposes of [Chapter] chapter 46 of this Title, and the board of education shall be entitled to receive State aid for that child as provided pursuant to [P.L.1990, c.52 (C.18A:7D-1 et al.)] P.L. , c. (C. ) (now pending before the Legislature as this bill), and all other pertinent statutes.

    Whenever any child shall be confined to a hospital, convalescent home, or other institution in New Jersey or in any other state in the United States and is enrolled in an education program approved under this article, or shall be placed in any other State facility as defined in section 3 of [P.L.1990, c.52 (C.18A:7D-3)] P.L. , c. (C. ) (now pending before the Legislature as this bill), the board of education of the district in which the child resides shall pay the tuition of [said] that child. The board of education may also furnish (a) the facilities or programs provided in this article to any person over the age of 20 who does not hold a diploma of a high school approved in this State or in any other state in the United States, (b) suitable approved facilities and programs for children under the age of 5.

(cf: P.L.1990, c.52, s.58)

 

    67. Section 14 of P.L.1977, c.193 (C.18A:46-19.8) is amended to read as follows:

    14. On November 5 of each year, each board of education shall forward to the commissioner an estimate of the cost of providing, during the next school year, examination, classification and speech correction services to nonpublic school children who attend a nonpublic school located within the district who were identified as eligible to receive each of these services pursuant to this act during the previous school year. Each board of education shall report the number of nonpublic school children who attended a nonpublic school located within the district, who were identified as eligible for supplementary instruction services during the preceding school year. The number of these pupils shall be multiplied by [the appropriate cost factor from section 14 of P.L.1990, c.52 (C.18A:7D-16) and by the State foundation amount as defined in section 6 of P.L.1990, c.52 (C.18A:7D-6)] $752.41. This product shall be added to the estimated cost for providing examination, classification and speech correction services.

    In preparing its annual budget, each board of education shall include as an expenditure the estimated cost of providing services to nonpublic school children pursuant to P.L.1977, c.193 (C.18A:46-19.1 et al.).

    In preparing its annual budget, each board of education shall include as a revenue State aid in an amount equal to [such] the estimated cost of providing services to nonpublic school children pursuant to P.L.1977, c.193 (C.18A:46-19.1 et al.).

    During each school year, each district shall receive an amount of State aid equal to 10% of [such] the estimated cost on the first day in September and on the first day of each month during the remainder of the school year. If a board of education requires funds prior to September, the board shall file a written request with the Commissioner of Education stating the need for the funds. The commissioner shall review each request and forward those for which need has been demonstrated to the appropriate officials for payment.     In the event the expenditures incurred by any district are less than the amount of State aid received, the district shall refund the unexpended State aid after completion of the school year. The refunds shall be paid no later than December 1. In any year, a district may submit a request for additional aid pursuant to P.L.1977, c.193 (C.18A:46-19.1 et al.). If the request is approved and funds are available from refunds of the prior year, payment shall be made in the current school year.

(cf: P.L.1991, c.128, s.5)

 

    68. N.J.S.18A:46-23 is amended to read as follows:

    18A:46-23. The board of education shall furnish transportation to all children found under this chapter to be handicapped who shall qualify therefor pursuant to law and it shall furnish [such] the transportation for a lesser distance also to any handicapped child, if it finds upon the advice of the examiner, his handicap to be such as to make transportation necessary or advisable.

    The board of education shall furnish transportation to all children being sent by local boards of education to an approved 12-month program pursuant to N.J.S.18A:46-14, or any other program approved pursuant to N.J.S.18A:46-14 and who qualify therefor pursuant to law, during the entire time the child is attending [such a] the program. The board shall furnish [such] transportation for a lesser distance also to [such] a handicapped child, if it finds upon the advice of the examiner, his handicap to be such as to make [such] the transportation necessary or advisable.

    The school district shall be entitled to State aid for [such] the transportation pursuant to section [16 of P.L.1990, c.52 (C.18A:7D-18)] 25 of P.L. , c. (C. ) (now pending before the Legislature as this bill) when the necessity for [such] the transportation and the cost and method thereof have been approved by the county superintendent of the county in which the district paying the cost of [such] the transportation is situated.

(cf: P.L.1990, c.52, s.59)

 

    69. Section 3 of P.L.1971, c.271 (C.18A:46-31) is amended to read as follows:

    3. a. Any school established pursuant to P.L.1971, c.271 (C.18A:46-29 et seq.) shall accept all eligible pupils within the county, so far as facilities permit. Pupils residing outside the county may be accepted should facilities be available only after provision has been made for all eligible pupils within the county. Any child accepted shall be classified pursuant to chapter 46 of Title 18A of the New Jersey Statutes.

    b. The board of education of any county special services school district may receive such funds as may be appropriated by the county pursuant to section 13 of P.L.1971, c.271 (C.18A:46-41) and shall be entitled to collect and receive from the sending districts in which the pupils attending the county special services school reside, for the tuition of [such] those pupils, a sum not to exceed the actual cost per pupil as determined for each special [education category] services school district, according to rules prescribed by the commissioner and approved by the State board. Whenever funds have been appropriated by the county, the county special services school district may charge a fee in addition to tuition for any pupils who are not residents of the county. The fee shall not exceed the amount of the county's per pupil appropriation to the county special services school district. For each special education category, the tuition shall be at the same rate per pupil for each sending district whether within or without the county. Ten percent of the tuition amount and the nonresident fee amount, if any, shall be paid on the first of each month from September to June to the receiving district by each sending district. The annual aggregate amount of all tuition may be anticipated by the board of education of the county special services school district with respect to the annual budget of the county special services school district. The amounts of all annual payments or tuition to be paid by any [such] other school district shall be raised in each year in the annual budget of [such] the other school district and paid to the county special services school district.

    Any special services school district which receives State debt service aid in the 1996-97 school year may include in its actual cost per pupil an amount equal to the 1996-97 State support percentage until the retirement of the debt issuance which generated the 1996-97 State aid. All other debt issuances shall be the full responsibility of the county board of chosen freeholders. The tuition charged to a board of education shall not exceed the actual cost per pupil in the prebudget year adjusted by the CPI.

    c. The board of education of any county special services school district, with the approval of the board of chosen freeholders of the county, may provide for the establishment, maintenance and operation of dormitory and other boarding care facilities for pupils in conjunction with any one or more of its schools for special services, and the board shall provide for the establishment, maintenance and operation of such health care services and facilities for the pupils as the board shall deem necessary.

    d. (Deleted by amendment, P.L.1991, c.62).

(cf: P.L.1991, c.62, s.23)

 

    70. Section 9 of P.L.1977, c.192 (C.18A:46A-9) is amended to read as follows:

    9. The apportionment of State aid among local school districts shall be calculated by the commissioner as follows:

    a. The per pupil aid amount for providing the equivalent service to children of limited English-speaking ability enrolled in the public schools, shall be [determined by multiplying the bilingual program weight from section 81 of P.L.1990, c.52 (C.18A:7D-21) or the appropriate cost factor from section 14 of P.L.1990, c.52 (C.18A:7D-16) by the State foundation amount as defined in section 6 of P.L.1990, c.52 (C.18A:7D-6)] $1274.03. The appropriate per pupil aid amount for compensatory education shall be [determined by multiplying the per pupil amount of compensatory education aid in the prebudget year by the PCIas defined by section 3 of P.L.1990, c.52 (C.18A:7D-3)] $628.71.

    b. The appropriate per pupil aid amount shall then be multiplied by the number of auxiliary services received for each pupil enrolled in the nonpublic schools who were identified as eligible to receive each auxiliary service as of the last school day of June of the prebudget year, to obtain each district's State aid for the next school year.

    c. The per pupil aid amount for home instruction shall be determined by multiplying the [State foundation amount as defined in section 6 of P.L.1990 c.52 (C.18A:7D-6)] T&E amount by a cost factor of 0.0037 by the number of hours of home instruction actually provided in the prior school year.

(cf: P.L.1991, c.128, s.3)

 

    71. Section 6 of P.L.1974, c.79 (C.18A:58-37.6) is amended to read as follows:

    6. State aid provided pursuant to [P.L.1990, c.52 (C.18A:7D-1 et al.)] P.L. , c. (C. ) (now pending before the Legislature as this bill) may be expended for the purchase and loan of textbooks for public school pupils in an amount which shall not exceed the State average budgeted textbook expense for the prebudget year per pupil in resident enrollment. Nothing contained herein shall prohibit a board of education in any district from purchasing textbooks in excess of the amounts provided pursuant to this act.

(cf: P.L.1990, c.52, s.77)

 

    72. (New section) The State Board of Education shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to effectuate the provisions of this act.

 

    73. The following sections are hereby repealed:

    Sections 1, 2, 4 through 9, 12 and 48 of P.L.1975, c.212 (C.18A:7A-1, 18A:7A-2, 18A:7A-4 through 18A:7A-9, 18A:7A-12 and 18A:7A-31);

    Section 5 of P.L.1991, c.3 (C.18A:7A-6.1);

    Section 6 of P.L.1991, c.3 (C.18A:7A-14.2);

    Sections 1 through 4, 6 through 10, 11 through 17, 80, 81, 18, 84, 19 through 22, 85, 23, 24, 87, 89, and 25 through 28 of P.L.1990, c.52 (C.18A:7D-1 through 18A:7D-4, 18A:7D-6 through 18A:7D-10 and 18A:7D-13 through 18A:7D-36);

    Section 26 of P.L.1991, c.62 (C.18A:7D-21.1);

    Section 3 of P.L.1993, c.80 (C.18A:7D-27.1); and

    Sections 33, 38, 34 and 36 of P.L.1991, c.62 (C.18A:7D-28.1 through 18A:7D-28.4).

 

    74. This act shall take effect immediately and shall first apply to the 1997-98 school year.

 

 

STATEMENT

 

    This bill provides for the establishment of a thorough and efficient system of free public education (T&E) as guaranteed by the State Constitution. It provides for the establishment of standards of thoroughness and efficiency and a new system for funding public education through a combination of State aid and local support. The proposed law supersedes those portions of P.L.1975, c.212 (C.18A:7A-1 et seq.) which address goals and standards and replaces the funding provisions established by the “Quality Education Act of 1990," P.L.1990, c.52 (C.18A:7D-1 et al.), which is repealed in its entirety.

    The bill directs the State Board of Education to adopt and update every five years, core curriculum content standards which shall define for all students in the State the substance of a thorough education. The commissioner is directed to develop and establish efficiency standards which shall define the types of programs, services, activities and materials necessary to achieve an efficient education. Together these standards will define what is required to provide a thorough and efficient education and will serve as the basis for determining the amount of funding necessary to do so.

    Under the bill's provisions, the Governor is required to issue biennially in each even numbered year, the Report on the Cost of Providing a Thorough and Efficient Education. The report will establish the per pupil amount necessary to provide a thorough and efficient regular education at the elementary, middle, and high school levels and the acceptable range of deviation from that amount in order to recognize and accommodate the need for local flexibility. In addition the report will establish per pupil amounts for early childhood and demonstrably effective program aids, and additional per pupil categorical amounts. These amounts will apply to the two successive fiscal years beginning one year from the subsequent July 1 and will be adjusted for inflation by the CPI in the second year.

    The per pupil amounts established in the report will in turn serve as the basis for determining a school district's T&E budget, or the total amount of funding needed to provide a thorough and efficient education consistent with the curriculum content and efficiency standards issued by the State board and commissioner. The T&E budget will be determined by multiplying the per pupil amount for a thorough and efficient regular education at the elementary level by the district’s resident enrollment, weighted based on the relative proportion of kindergarten, elementary, middle, and high school pupils included in the enrollment. Each school district is required to fund its T&E budget through local tax revenues up to a level based on district property wealth and district income. Any difference between the district's T&E budget and the required local share will be funded through State aid, with supplemental aid being available for certain districts where the impact of the new standards on local taxes would be excessive. Also, stabilization factors have been included within the State aid formula so as to prevent dramatic increases or decreases in a district’s State aid as a result of the permanent part of the formula. For each district, a maximum and minimum permissible budget level is calculated. In recognition of the fact that some districts may currently be spending above the T&E range, the bill incorporates such current spending levels within the definition of maximum T&E budget. This provision recognizes that these current levels of spending have already been authorized by the voters of those districts and that the inclusion of that spending within the district's maximum permissible T&E budget is necessary to ensure the continuation of sound and orderly educational planning.

    Every two years, the commissioner is required to notify each district of the T&E amount, T&E flexible amount, T&E range, and amounts per pupil for early childhood program aid, demonstrably effective program aid, and the categorical programs for the subsequent two fiscal years. Annually, within seven days following transmittal of the State budget message to the Legislature by the Governor, the commissioner shall notify each district of the maximum amount of aid payable to the district in the succeeding school year and shall notify each district of its T&E budget, maximum T&E budget, and minimum permissible T&E budget for the succeeding school year. Annually, on or before March 4, each district board of education is to adopt and forward to the commissioner for approval, a budget that provides no less than the minimum permissible T&E amount per pupil plus categorical amounts required for a thorough and efficient education and no greater than the maximum T&E budget, except as subject to approval by the voters. Before approving the budgets, the commissioner must determine that they properly implement the core curriculum content standards, and in instances where they do not, the commissioner may make such fiscal or programmatic adjustments as he deems necessary, including directing additional spending up to the district's maximum T&E budget level.

    Districts seeking to budget beyond the maximum permissible T&E level must submit a separate proposal or proposals to the local voters for additional spending. If rejected by the local voters and not restored by the municipal governing body, these amounts may not be appealed to the commissioner. Districts with budgets below the maximum T&E level and falling within the district’s permissible T&E budget need not submit the budget to the voters for approval. Districts with budgets below the maximum T&E level, but in excess of the district’s permissible T&E budget must submit a separate proposal or proposals to the local voters for additional spending up to the maximum T&E amount. If rejected by the local voters and not restored by the municipal governing body, these amounts may be appealed to the commissioner.

    Under the bill, special education including extraordinary costs, pupil transportation, bilingual education, adult and post secondary education, distance learning network, and county vocational aid are to be paid to all school districts as categorical aid. Also, the department is to determine programmatic definitions and establish appropriate per pupil amounts for adult high school programs and post secondary vocational educational programs.

    The T&E budget is designed to give districts resources to provide a thorough and efficient education. However, additional early childhood education program aid and demonstrably effective program aid is provided for districts that have concentrations of socioeconomically disadvantaged children living in conditions of poverty. Early childhood aid is provided for those districts having 5% or more low-income pupils, and is to be used for pre-kindergarten, full-day kindergarten and other early childhood programs. Additional aid is provided for concentrations of low-income pupils of 40% or more for transition and social services to primary grade students. Demonstrably effective program aid is to be distributed based on school-based concentrations of low income pupils in order to provide instructional, school governance, health and social services aimed at addressing the socioeconomic disadvantages of these pupils. The bill also makes provision for technological advancements through the establishment and funding of a distance learning network, which, while available to all districts, will be especially helpful to disadvantaged districts as a means of providing quality programs at low cost.

    The bill also establishes an Academic Achievement Reward Program to provide rewards to districts having one or more schools that meet criteria for absolute success or significant progress towards high student academic achievement. Schools are to be ranked into three groupings by enrollment for the High School Proficiency Test, the Early Warning Test, and the Fourth Grade Test which then determines reward eligibility for both the absolute success and the significant progress reward. Schools with 90%of student enrollment performing at or above the passing scores are eligible for the absolute success reward. Schools that do not qualify for the absolute success reward are eligible for the significant progress reward. The schools will be grouped together in five bands and the top 10% in each band with the highest level of improvement will be eligible for the significant progress reward. Schools located in districts that have been penalized under the "School Efficiency Program Act," P.L.1995, c.236, will not be eligible for either reward. The reward appropriation will be equally divided among all districts with schools determined to be eligible for a reward.

    The pupil transportation formula established under the bill is designed to encourage operational efficiency and includes two principal components: a base aid amount and an incentive factor. Base aid represents a level of funding to reimburse districts for the cost of efficiently transporting eligible pupils based on regular or specialized modes of transportation, eligible pupils transported, average miles per eligible pupil, and cost factors representative of school districts in the top two quartiles of efficient performance. The incentive factor will be applied to the regular component of base aid and will be based on the district’s average regular vehicle utilization, defined as the total number of eligible regular and special education pupils transported on regular buses. Using the incentive factor, a district’s aid is calculated based on the use of vehicle capacity relative to all other districts.

    State aid for school facilities shall be paid to districts toward principal and interest payments on both debt service and lease purchase agreement payments for the fiscal year, at the percentage of State support in the district’s T&E budget. The base to which this percentage shall be applied shall be the full debt service and lease purchase agreement payment for all debt service issuances authorized and lease purchase agreements approved prior to July 1, 1997. For all debt service authorized and lease purchase agreements approved after July 1, 1997, the aidable base shall be that percentage of the debt service or lease purchase payment equivalent to the ratio of approved costs to the original issuance principal, with the ratio never to exceed one, and shall be reduced for districts that fail to meet maintenance requirements on aided facilities. Beginning ten years from the date of enactment of the bill, districts shall be required to demonstrate a net investment within the previous ten years of 2% of what the facility’s replacement cost was ten years prior in order to receive aid on an improvement to the facility. Aid for new construction approved or authorized after July 1, 1997 shall be reduced, beginning in the fourth year after occupancy, for districts that fail to demonstrate in the prior fiscal year an investment in maintenance of the facility of at least two-tenths of one percent of the facility’s replacement cost.

    Approved costs for new construction and additions shall be the product of an approved square footage of construction, derived from school models developed by the department for each school level; a cost allowance per square foot of construction; and percentage allowances for equipment and furnishings, architect and engineering fees, and issuance costs. The approved area shall be based on the number of unhoused students the district shows as a result of a five-year cohort survival enrollment projection. The area construction cost allowance shall be determined based on a five-city historical cost index for construction in New Jersey. Other allowances shall be based on industry standards. Approved costs for renovations shall be the product of the replacement cost of the facility, determined by multiplying the gross area of the facility by the construction cost and other allowances, and a factor less than one that decreases as building age increases. Renovations on buildings fewer than twenty years of age shall not be aided. Approved costs for new construction done in lieu of renovations shall be determined as for new construction only when the age of the facility is 50 years or greater or when the commissioner determines that extraordinary circumstances warrant differential treatment. Approved costs for new construction done in lieu of renovations for facilities less than fifty years old shall be determined as for renovations. For purchase of an existing facility, total approved costs for both the purchase of the facility and any renovations made to the facility within five years of purchase shall be that amount determined as for new construction.

    Under the bill, the commissioner is empowered to ensure that all districts are meeting established standards through a variety of means. In addition to his general powers of supervision, this bill requires the commissioner to review annual budgets to ensure compliance with core curriculum content standards, continues the existing system of monitoring with a new emphasis on meeting standards, and authorizes the commissioner to summarily take extraordinary measures when he determines, as the result of a district or school’s performance on State assessments or through State evaluation, that established standards of thoroughness and efficiency are not being met.

    Finally, in the event the commissioner establishes an interdistrict school choice program at a subsequent date, the bill includes language that would allow nonresident students enrolled in such a program to be included within a district’s resident enrollment count.

 

                             

 

The "Comprehensive Educational Improvement and Financing Act of 1996."