ASSEMBLY, No. 258

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen GARCIA and ROMANO

An Act to amend "AN ACT making appropriations for the support of the State Government and the several public purposes for the fiscal year ending June 30, 1996 and regulating the disbursement thereof," approved June 30, 1995 (P.L.1995, c.164).

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

    1. Section 1 of P.L.1995, c.164, the fiscal year 1996 annual appropriations act, on page 145, at lines 7 through 23, is amended to read as follows:

STATE AID

34 DEPARTMENT OF EDUCATION

30 Educational, Cultural and Intellectual Development

31 Direct Educational Services and Assistance--State Aid

Notwithstanding any other law to the contrary, Foundation Aid for special needs districts is increased by $100,000,000. This allocation shall be determined in two steps, as follows. Step 1: funds shall be allocated to ensure that the local levy budget per pupil in each such district be at a minimum 78.24 percent of the per pupil average local levy budget of districts in District Factor Groups "I" and "J" for 1995-96. For purposes of estimating the average per pupil local levy budget in District Factor Groups "I" and "J," the average local levy budget per pupil in 1994-95 shall be increased by 2.5 percent. Step 2: Subsequent to the preceding calculation, the remaining funds shall be allocated in proportion to their relative shares of the remaining cumulative parity gap. The remaining cumulative parity gap shall be defined as the difference between the 1994-95 local levy budget of districts in District Factor Groups "I" and "J" increased by 2.5 percent and the 1994-95 local levy budgets of special needs districts adjusted by any increase required to establish the 78.24 percent minimum described above. The minimum required general fund tax levy for each special needs district in 1995-96 shall not be less than its 1994-95 general fund tax levy, except that a special needs school district, whose resident enrollment on October 15, 1994 is less than the resident enrollment on October 15, 1993 and whose total general current expense budget is comprised of less than 35 percent state aid, may reduce its general fund tax levy by an amount not exceeding $500,000.

(cf: P.L.1995, c.164, s.1)

    2. Section 1 of P.L.1995, c.164, the fiscal year 1996 annual appropriations act, on page 176, at lines 17 through 33, is amended to read as follows:

PROPERTY TAX RELIEF FUND

STATE AID

34 DEPARTMENT OF EDUCATION

30 Educational, Cultural and Intellectual Development

31 Direct Educational Services and Assistance--State Aid

Notwithstanding any other law to the contrary, Foundation Aid for special needs districts is increased by $100,000,000. This allocation shall be determined in two steps, as follows. Step 1: funds shall be allocated to ensure that the local levy budget per pupil in each such district be at a minimum 78.24 percent of the per pupil average local levy budget of districts in District Factor Groups "I" and "J" for 1995-96. For purposes of estimating the average per pupil local levy budget in District Factor Groups "I" and "J," the average local levy budget per pupil in 1994-95 shall be increased by 2.5 percent. Step 2: Subsequent to the preceding calculation, the remaining funds shall be allocated in proportion to their relative shares of the remaining cumulative parity gap. The remaining cumulative parity gap shall be defined as the difference between the 1994-95 local levy budget of districts in District Factor Groups "I" and "J" increased by 2.5 percent and the 1994-95 local levy budgets of special needs districts adjusted by any increase required to establish the 78.24 percent minimum described above. The minimum required general fund tax levy for each special needs district in 1995-96 shall not be less than its 1994-95 general fund tax levy, except that a special needs school district, whose resident enrollment on October 15, 1994 is less than the resident enrollment on October 15, 1993 and whose total general current expense budget is comprised of less than 35 percent state aid, may reduce its general fund tax levy by an amount not exceeding $500,000.

(cf: P.L.1995, c.164, s.1)

    3. This act shall take effect immediately and if enacted after July 1, 1995, shall be retroactive to that date.

STATEMENT

    This bill amends P.L.1995, c.164, the fiscal year 1996 annual appropriations act, allow certain special needs school districts to reduce their general fund tax levy by an amount not exceeding $500,000. A special needs district would qualify if it has a lower resident enrollment in the 1995-96 school year than in the 1994-95 school year, and if it has a total school budget comprised of less than 35 percent State aid.

Amends FY 1995 annual appropriations act to allow certain special needs school districts to reduce their general fund tax levy.