ASSEMBLY, No. 616
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblymen IMPREVEDUTO and ROCCO
An Act concerning school financing and amending P.L.1990, c.52.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 85 of P.L.1990, c.52 (C.18A:7D-28) is amended to read as follows:
85. a. "Maximum permissible net budget" means the amount calculated as follows:
PNB = PCI x PR x PBY where
PNB is the maximum permissible increase in the net budget for the budget year. Those costs incurred by a district as a result of placements of special education pupils in schools outside the district shall not be limited under this section;
PCI is the average annual percentage increase in per capita income as defined in section 3 of P.L.1990, c.52 (C.18A:7D-3);
PR is 1.7442 - (.6460 x BR), however PR shall not be greater than 1.1628 or less than .9690;
BR is the ratio of the district's local levy budget of the prebudget year to the district's maximum foundation budget for the budget year as determined pursuant to section 6 of P.L.1990, c.52 (C.18A:7D-6); and
PBY is the net budget for the prebudget year, minus those costs incurred by a district as a result of placements of special education pupils in schools outside the district.
b. In determining a district's maximum permissible net budget for the 1991-92 school year, the district's net budget for the 1990-91 school year shall be increased by the amount of any current expense or capital outlay surplus which was appropriated in the district's 1990-91 annual school budget.
c. Annually through the 1995-96 school year for each special needs district, the commissioner shall calculate an equity spending cap which shall provide for a percentage increase in the district's budget that, if sustained for each year through the 1995-96 school year, would result in the per pupil budget of the special needs district equalling the average per pupil budget of the districts included in the Department of Education's district factor groups I and J. The equity spending cap shall also allow for those budget items included in the net budget, but excluded from the local levy budget, to grow annually at the PCI or CPI, as appropriate. To ensure equity, the commissioner shall also adjust the calculation of the equity cap, when necessary, to account for the payment of teacher pension and social security aid.
As used in this subsection:
CPI is the consumer price index as defined in section 3 of P.L.1990, c.52 (C.18A:7D-3);
PCI is the average annual percentage increase in per capita income as defined in section 3 of P.L.1990, c.52 (C.18A:7D-3); and
Per pupil budget is the budget divided by the resident enrollment.
d. If, for any year, a special needs district's equity spending cap determined by the commissioner pursuant to subsection c. of this section exceeds the maximum permissible increase in the net budget as determined pursuant to subsection a. of this section, the district may increase its net budget in accordance with the equity spending cap.
e. A board of education of a school district which: (1) for the two years prior to the prebudget year, has had an annual average increase in the district's resident enrollment which is greater than two percent; or (2) between the prebudget year and the year prior to the prebudget year, has had an increase in the district's local cost for special education pupils which is greater than five percent; or (3) during the 1990-91 school year but prior to April 1, 1991, has entered into a lease purchase agreement, may apply to the Commissioner of Education for a waiver of the expenditure limitation established pursuant to this section. A board of education of a school district that sends pupils and pays tuition to a special needs district may apply to the Commissioner of Education for a waiver of the expenditure limitation established pursuant to this section. Any waiver granted by the commissioner pursuant to this subsection shall not be included in the question on excess expenditures which is to be submitted to the voters of the district pursuant to subsection f. of this section.
f. Any school district may submit a proposal to raise the amount of tax levy necessary to exceed the maximum permissible net budget permitted by this section to the legal voters of the district for type II school districts without a Board of School Estimate and to the Board of School Estimate for those school districts with a Board of School Estimate as required during the school budget approval process pursuant to chapters 22 and 54 of Title 18A of the New Jersey Statutes and section 13 of P.L.1971, c.271 (C.18A:46-41). The proposal to raise additional tax levy to exceed the maximum permissible net budget shall be in addition to the amounts required to be approved for each school district in accordance with chapters 22 and 54 of Title 18A of the New Jersey Statutes and section 13 of P.L.1971, c.271 (C.18A:46-41). In the event that a school district's proposal to raise the tax levy to exceed the maximum permissible net budget is not approved in accordance with the budget approval process set forth in chapter 22 of Title 18A of the New Jersey Statutes for type II districts and for type I districts, chapter 54 of Title 18A of the New Jersey Statutes for county vocational school districts and section 13 of P.L.1971, c.271 (C.18A:46-41) for county special services school districts, that disapproval shall be deemed final and shall not be subject to further review or appeal.
(cf: P.L.1991, c.62, s.19)
2. This act shall take effect immediately.
STATEMENT
This bill would remove from the school budget cap the expenses incurred by a district in placing special education pupils in schools outside the district. Under current law, a district may not increase its annual school budget by more than an amount that is determined pursuant to statute. The formula for determining the cap is based in part on the increase in per capita income. Costs associated with special education placements often increase at a much greater rate than per capita income. In addition, the school district cannot control the costs; it must follow the recommendations of a child's independent study team when making a placement. This bill would treat more fairly those school districts which have a large percentage of special education students which are placed outside the district by removing the special education placement costs from the budget cap.
Excepts certain special education placement costs from school budget cap.