A253

ASSEMBLY, No. 253

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblyman GARCIA

An Act concerning State school aid and amending P.L.1990, c.52.

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

1. Section 3 of P.L.1990, c.52 (C.18A:7D-3) is amended to read as follows:

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

"Adjusted resident enrollment" means the average number of special education services, at-risk and bilingual education pupils who, on the last school day prior to October 16, December 15, March 1 and May 15 of the prebudget year, and the number of all other pupils who, on the last school day prior to October 16 of the prebudget year, are residents of the district and are enrolled in: (1) the public schools of the district, except as a post-graduate or evening school pupil; or (2) another school district to which the district of residence pays tuition other than a county vocational school district in the same county or county special services school district; provided that a district shall count pupils in a shared-time vocational program who are regularly attending both the schools of the district and of a county vocational school district on an equated full-time basis in accordance with procedures to be established by the commissioner. For purposes of this section, resident enrollment shall include beginning in the 1992-93 school year and thereafter, 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.

For the purposes of notification of each district by the commissioner, pursuant to section 21 of P.L.1990, c.52 (C.18A:7D-26), as to the maximum amount of aid for special education, at-risk and bilingual programs payable to the district under the provisions of P.L.1990, c.52 (C.18A:7D-1 et al.), the district's State aid entitlement shall be calculated by using a projected adjusted resident enrollment for special education services pupils, at-risk pupils and bilingual education pupils based on pupil enrollments on the last school day prior to October 16 of the prebudget year. Adjustments in State school aid for the budget year based upon actual enrollment counts for the prebudget year shall be made in the State school aid for the year following the budget year.

"Bilingual education pupil" means a pupil enrolled in a program of bilingual education approved by the State board.

"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 in special class programs when the pupil is enrolled in a special class register.

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

"Current expense" means all expenses of the school district, as enumerated in N.J.S.18A:22-8, other than those required for interest and debt redemption charges and any budgeted capital outlay.

"Debt service" means and includes payments of principal and interest upon school bonds and other obligations issued to finance the acquisition of school sites and the acquisition, construction or reconstruction of school buildings, including furnishings, equipment 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.) is excluded.

"District income" 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.

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. For the 1991-92 school year, regional and constituent pupils shall include pupils attending the schools of a county vocational school or a county special services school district. Part-time post-secondary vocational pupils are to be excluded from this calculation.

"Equalized valuation" means the equalized valuation of the taxing district or taxing districts 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. For the 1991-92 school year, regional and constituent pupils shall include pupils attending the schools of a county vocational school or a county special services school district. Part-time post-secondary vocational pupils are to be excluded from this calculation. With respect to certain operating school districts, other than school districts that received funds through a municipal budget in 1989 as determined pursuant to column 1 (c) of Section C of the Abstract of Ratables, that are composed of one or more taxing districts, where 20% or more of the land area of the taxing district is situated within the development district subject to an intermunicipal tax sharing agreement pursuant to P.L.1968, c.404 (C.13:17-1 et seq.), the equalized valuation shall equal the product of .70 and the amount of equalized valuation certified by the director.

"Evening school pupils" means the equated full-time resident enrollment of pupils enrolled in a public evening school established pursuant to N.J.S.18A:48-1.

"Local levy budget" means the sum of the foundation aid and transition aid received by a school district and the district's local levy for the general fund.

"Maximum Statewide foundation aid" shall be determined annually by subtracting the total State aid payable pursuant to sections 14, 16, 80 and 81 of P.L.1990, c.52 (C.18A:7D-16, 18A:7D-18, 18A:7D-20 and 18A:7D-21) and sections 26, 29, 30 and 31 of P.L.1991, c.62 (C.18A:7D-21.1 et al.) from the maximum State school aid, by subtracting the funds appropriated pursuant to section 38 of P.L.1991, c.62 (C.18A:7D-28.2), and by adding any additional State aid which results from the provisions of section 27 of P.L.1991, c.62.

"Maximum State school aid" shall be determined for the 1992-93 school year and annually thereafter by adding 80% of the increase in the State school aid inflator and the maximum State school aid for the prebudget year. However, beginning in the 1993-94 school year, the Governor may increase the maximum State school aid to an amount not to exceed the value of the State school aid inflator.

The State school aid inflator shall be determined for the 1992-93 school year and annually thereafter by multiplying the value of the school aid inflator for the prebudget year by the sum of 1.01 and the PCI. For the 1991-92 school year, the value of the school aid inflator is $4,250,000,000.

"Net budget" means the sum of the foundation aid received by a school district and the State aid received pursuant to sections 14, 16, 25, 80, and 81 of P.L.1990, c.52 (C18A:7D-16, 18A:7D-18, 18A:7D-33, 18A:7D-20, and 18A:7D-21) and sections 26 and 31 of P.L.1991, c.62 (C.18A:7D-21.1 et al.) and the district's local levy for the general fund. For a county special services school district, the net budget shall also include tuition received by the district to provide services pursuant to chapter 46 of Title 18A of the New Jersey Statutes.

"Net debt service" means the balance after deducting all revenues from the school debt service budget of the school district and the school debt service amount included in the municipal budget, except the amounts to be raised by local taxation and State aid.

"Postgraduate pupils" means pupils who have graduated from high school and are enrolled in a secondary school for additional high school level courses.

"Prebudget year" means the school year preceding the year in which the school budget will be implemented.

"Pupils eligible for free meals or free milk" means those children who have been determined to be eligible to receive a free meal or free milk under the National School Lunch Act, 42 U.S.C. §1751 et seq., and the Child Nutrition Act of 1966, 42 U.S.C. §1771 et seq., as of October 15 of the prebudget year.

"PCI" means the average annual percentage increase, expressed as a decimal, in State per capita personal income over the four fiscal years ending on June 30 prior to the prebudget year. The per capita personal income for each of the four years shall be the average of the per capita personal income for the four quarters in each fiscal year utilizing the quarterly data for State personal income and State population as published by the United States Department of Commerce.

"Resident enrollment" means the average number of special education services, at-risk and bilingual education pupils who, on the last school day prior to October 16, December 15, March 1 and May 15 of the prebudget year, and the number of all other pupils who, on the last school day prior to October 16 of the prebudget 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 or county special services school district on a full-time basis, State college demonstration school or private school to which the district of residence pays tuition; (3) a State facility; (4) are receiving home instruction; or (5) are 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. For purposes of this section, resident enrollment shall include, beginning in the 1992-93 school year and thereafter, 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.

"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 and any county special services or county vocational school districts established pursuant to chapter 46 or chapter 54 of Title 18A of the New Jersey Statutes.

"Special education services pupil" means a pupil receiving specific services pursuant to chapter 46 of Title 18A of the New Jersey Statutes in special class programs when the pupil is enrolled in a special class register.

"Special needs district" means any 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, as of June 5, 1990: a. was classified by the Department of Education as an urban school district and was included in the department's district factor group A or B; or b. in which the quotient produced by dividing the number of pupils eligible for AFDC by the resident enrollment, less the number of preschool, evening school and post-graduate pupils, is greater than or equal to 0.15 and the number of pupils eligible for AFDC is greater than 1,000. For this calculation, pupils eligible for AFDC means those children aged 5-17 and resident in the district who are members of families which are eligible for "Aid to Families with Dependent Children" pursuant to P.L.1959, c.86 (C.44:10-1 et seq.), as of September 30 of the prebudget year.

"State facility" means a State residential facility for the retarded; 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 residential youth center; a State training school or correctional facility; a State child treatment center or psychiatric hospital.

"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 as certified by the Director of the Division of Taxation on October 1 of the prebudget year. In the event that the equalized table certified by the Director of the Division of Taxation 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.

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

(cf: P.L.1993, c.83, s.1)

2. This act shall take effect immediately and shall first apply to school aid for the 1995-96 school year.

STATEMENT

This bill provides that the pupil enrollment counts for special education, at-risk education and bilingual education used in the calculation of State school aid shall be based upon the average of such pupils enrolled on October 16, December 15, March 1, and May 15 of the prebudget year. However, the Commissioner of Education is directed to use the October 16 enrollment count in calculating each district's anticipated State aid entitlement for the purpose of the preliminary aid notification. Adjustments based upon the actual quarterly average enrollments for the prebudget year will be made in State school aid for the year following the budget year.

Basing pupil enrollment for at-risk, bilingual and special education will lead to a more accurate indication of actual pupil enrollments than the current method of basing pupil enrollment on one date in October.

Provides for pupil enrollment counts for calculation of State school aid for at-risk, bilingual and special education to be determined by averaging the enrollments on October 16, December 15, March 1, and May 15.