A1039

ASSEMBLY, No. 1039

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen DORIA and KAVANAUGH

An Act concerning State aid for education, supplementing and amending P.L.1990, c.52 (C.18A:7D-1 et al.) and supplementing Title 18A of the New Jersey Statutes.

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 "School Freedom of Choice Act."

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

a. There is no one school or program which is best for all children;

b. School choice will give all children in the State an extended range of educational opportunity;

c. School choice will expand the role of parents in their child's education through selection of the educational program and school which best suits their child's needs;

d. School choice will offer at-risk students educational options which may not be available to them in the public schools of their district; and

e. School choice will provide an incentive to all schools to improve and expand their educational programs.

3. (New section) a. A public school choice program is established to enable any pupil to attend a school or program in a participating district in which the pupil does not reside.

b. A school board may, by resolution, determine that nonresident pupils may attend any of its schools or programs pursuant to this section. No school district shall be required to accept nonresident pupils in any of its schools or programs pursuant to this section.

c. A nonresident school district which chooses to participate in the public school choice program shall fix a tuition rate for nonresident pupils who seek to attend the schools of the district. The tuition rate may not exceed the State foundation amount multiplied by the foundation weight established in section 6 of P.L.1990, c.52 (C.18A:7D-6) for the grade level in which the pupil is being accepted. The tuition shall be paid, in whole or in part, with the school choice grant amount determined pursuant to section 6 of P.L. , c. (C. ) (now pending before the Legislature as this bill). The district of residence may supplement the school choice grant amount through local levy funds, which shall be paid directly to the school district of attendance, in an amount not to exceed one half of the State foundation amount multiplied by the foundation weight for the grade level in which the pupil is being accepted. Whenever the tuition exceeds the school choice grant amount plus the amount of any foundation aid payable to the district pursuant to section 5 of the "School Freedom of Choice Act," P.L. , c. (C. ) (now pending before the Legislature as this bill) and local levy supplement, the pupil's parent or guardian shall pay the difference directly to the public school of attendance.

4. (New section) a. In order for a pupil to attend a school or program in a district outside of the district of residence, the pupil's parent or guardian shall submit an application to the participating nonresident district. Before submitting an application, the pupil and the pupil's parent or guardian shall discuss with a school guidance counselor, or other appropriate staff member employed by the district the pupil is currently attending, the pupil's academic or other reason for applying to enroll in a school or program of a nonresident district. However, the guidance counselor or other staff member shall not prohibit the pupil from attending the schools of another district. The pupil's application shall identify the reason for seeking enrollment in the nonresident district. The pupil's parent or guardian shall submit an application by November 15 for initial enrollment beginning the following school year. The application shall be on a form provided by the Commissioner of Education. A particular school or program may be requested by the pupil's parent or guardian. Once enrolled in a nonresident district, the pupil shall remain enrolled therein and shall not be required to submit annual or periodic applications for renewal. To return to the resident district or to attend the schools of a different nonresident district, the parent or guardian of the pupil shall provide notice to both the resident district and the nonresident district or apply to a different nonresident district by November 15 for enrollment beginning the following school year.

b. A district that accepts nonresident pupils, according to the "School Freedom of Choice Act," P.L. , c. (C. )(now pending before the Legislature as this bill) shall notify a pupil's parent or guardian in writing within 40 days following receipt of an application whether the application has been accepted or rejected. If an application is rejected, the district shall state in the notification the reason for rejection. The pupil's parent or guardian shall notify the nonresident district within 21 days following acceptance whether the pupil intends to enroll in the nonresident district. Notice of intent to enroll in the nonresident district obligates the pupil to attend the nonresident district during the following school year, unless the school boards of the resident and the nonresident districts agree in writing to allow the pupil to transfer back to the resident district, or the pupil's residence changes to another district. The nonresident district shall notify the resident district and the Commissioner of Education of the pupil's intent to enroll in the nonresident district. The procedures set forth in this subsection shall also apply to a pupil who applies to transfer from one participating nonresident district to another participating nonresident district.

c. A school board of a participating district shall adopt, by resolution, specific standards for acceptance and rejection of applications. Standards may include the capacity of a program, class, grade level, or school building. Standards may not include previous academic achievement, athletic or other extracurricular ability, handicapping conditions, proficiency in the English language, or previous disciplinary proceedings.

d. A nonresident district shall award a diploma to a nonresident pupil participating in the public school choice program if the pupil meets State graduation requirements.

5. (New section) a. A nonresident district participating in the public school choice program shall submit to the Commissioner of Education on the first day of October, December, February, April and June proof of a pupil's enrollment or continued enrollment in the nonresident district pursuant to the nonpublic school choice program and proof that payment has been received for tuition up to the date of the reporting. If a pupil ceases to attend the nonpublic school during the school year, the nonresident district shall notify the commissioner immediately. Upon receipt of the proof of enrollment and payment of tuition the commissioner shall pay to the parent or guardian of the pupil an amount equal to the school choice aid calculated pursuant to section 6 of the "School Freedom of Choice Act," P.L. , c. (C. ) (now pending before the Legislature as this bill). The school choice grant amount shall be paid to the parent or guardian of the pupil in five equal installments on the first day of September, November, January, March and May. Notwithstanding the above, the first installment payment on September 1 shall be made based upon the initial intent to enroll by the pupil. The funds so paid shall be used solely for the purpose of paying tuition at the public school.

b. The commissioner shall also pay to the nonresident school district, to be credited toward the pupil's tuition, an amount equal to the foundation aid attributable to a pupil in the district of residence for the year of attendance minus the school choice amount which shall be paid from the foundation aid of the district of residence. The amount of foundation aid paid pursuant to this section shall not, when combined with the school choice grant amount and local levy supplement, exceed the tuition rate established by the nonresident district. The commissioner shall also pay to the nonresident district any special education aid, aid for bilingual pupils, and at-risk aid for which a student is eligible pursuant to chapter 7D of Title 18A of the New Jersey Statutes. The amount so calculated shall be paid to the nonresident school district in 10 equal monthly installments on the first day of each month from September through June.

c. The commissioner shall annually reduce the State aid entitlement of a school district of residence by the foundation aid attributable to a pupil. The commissioner shall also deduct from the aid entitlement of a resident district any special education aid, aid for bilingual pupils or at-risk aid which is attributable to a pupil.

6. (New section) The school choice aid shall equal $1,250 for pupils in grades K through 5, $1,400 for pupils in grades 6 through 8, or $1,750 for pupils in grades 9 through 12 which shall be paid from the "School Choice Fund" established pursuant to section 16 of P.L. , c. (C. ) (now pending before the Legislature as this bill). This amount may be annually adjusted by the commissioner to account for increases in educational costs.

7. (New section) A nonpublic school choice program is established to enable any pupil who is eligible for a free public education pursuant to N.J.S.18A:38-1 to attend a participating nonpublic school within the State and have the tuition paid, in full or in part, with the State school choice aid provided pursuant to section 6 of P.L. , c. (C. ) (now pending before the Legislature as this bill).

In order to participate in this program, a nonpublic school shall annually:

a. Notify the Commissioner of Education of its desire to participate in the program by August 30 of the school year preceding any school year in which pupils will be enrolled under this section.

b. File a disclosure statement with the Commissioner of Education by September 30 of the school year preceding a school year in which pupils will be enrolled under this section setting forth, on a form provided by the commissioner, the following information:

(1) The tuition rate established for the school year for which the statement is being filed. The tuition rate shall be uniform for all students attending the nonpublic school;

(2) The number of pupils currently enrolled in the school by grade level, the number of pupils enrolled under this section, and the anticipated openings available for pupils applying under this section for the school year for which the disclosure statement is being filed;

(3) The number of teachers at the nonpublic school and the percentage of teachers who hold State certification;

(4) A brief description of the school facilities; computer, science, music or art resources; library services; food services; extracurricular activities; or any other information required by the Commissioner of Education;

(5) Ownership information;

(6) Indicators of student achievement;

(7) A description of the course of instruction to be offered by the school;

(8) Any other information which the Commissioner of Education, in consultation with the Director of the Division of Consumer Affairs in the Department of Law and Public Safety, may require.

c. Obtain a performance bond payable to the Commissioner of Education in an amount equal to the number of pupils electing to attend the nonpublic school pursuant to this section for the school year for which the bond is being filed multiplied by the school's tuition rate per pupil. The bond shall be filed with the Commissioner of Education by August 1 preceding each school year. The bond shall be used to guarantee the compliance of the nonpublic school with the requirements of P.L. , c. (C. )(now pending before the Legislature as this bill).

8. (New section) In order to qualify for tuition reimbursement under the "School Freedom of Choice Act," P.L. , c. (C. ) (now pending before the Legislature as this bill) a pupil's parent or guardian shall submit an application, on a form provided by the Commissioner of Education, to a participating nonpublic school by November 15 of the school year preceding the school year for which the pupil wants to enroll. Before submitting an application, the pupil and the pupil's parent or guardian must discuss with a school guidance counselor or other appropriate staff member employed by the district the pupil is currently attending the pupil's academic or other reason for applying to enroll in a nonpublic school. However, the guidance counselor or other staff member may not prohibit the pupil from transferring to a nonpublic school. The pupil's application shall identify the reason for seeking enrollment in the nonpublic school. Within 40 days following receipt of the application, a participating nonpublic school shall notify the applicant, in writing, as to whether the application has been accepted. A participating nonpublic school shall determine acceptance on a nondiscriminatory basis. A pupil's parent or guardian shall notify the nonpublic school within 21 days following acceptance whether the pupil intends to enroll in the nonpublic school. Notice of intent to enroll in the nonpublic school obligates the pupil to attend the nonpublic school during the following school year, unless the resident district and the nonpublic school agree in writing to allow the pupil to transfer back to the resident district. The nonpublic school shall notify the resident district and the Commissioner of Education of the pupil's intent to enroll in the nonpublic school. Once enrolled in a nonpublic school, the pupil will remain enrolled therein and shall not be required to submit annual or periodic applications for renewal. To return to the resident district, the parent or guardian of the pupil shall provide notice to the resident district by November 15 for enrollment beginning the following school year. The procedures set forth in this section shall also apply to a pupil who applies to transfer from one participating nonpublic school to another participating nonpublic school.

9. (New section) a. A nonpublic school participating in the nonpublic school choice program shall submit to the Commissioner of Education on the first day of October, December, February, April and June proof of a pupil's enrollment in the nonpublic school pursuant to the nonpublic school choice program and proof that payment has been received for tuition up to the date of the reporting. If a pupil ceases to attend the school during the school year, the nonpublic school shall notify the commissioner immediately. Upon receipt of the proof of enrollment and payment of tuition the commissioner shall pay to the parent or guardian of the pupil an amount equal to the school choice aid calculated pursuant to section 6 of the "School Freedom of Choice Act," P.L. , c. (C. ) (now pending before the Legislature as this bill). The school choice grant amount so calculated shall be paid to the parent or guardian of the pupil in 5 equal installments on the first day of September, November, January, March and May. Notwithstanding the above, the initial installment payment on September 1 shall be made based upon the pupil's intent to enroll. The funds so paid shall be used solely for the purpose of paying tuition at the nonpublic school. The district of residence may supplement the school choice grant amount through local levy funds in an amount not to exceed one half of the State foundation amount multiplied by the foundation weight for the grade level in which pupils are being accepted. However, the school choice aid plus the amount of any local levy supplement paid to the parent or guardian of a pupil pursuant to this section shall not exceed the tuition rate established by the nonpublic school for the year of attendance. Whenever the tuition exceeds the school choice grant amount plus the amount of any local levy supplement, the pupil or the pupil's parent or guardian may be required to pay any difference directly to the nonpublic school.

b. The commissioner shall annually reduce the foundation aid of the school district of residence by the amount of foundation aid attributable to a pupil whenever a pupil who participates in the nonpublic school choice program was enrolled in the public schools of the district in the prior year. Pupils attending a nonpublic school pursuant to the "School Freedom of Choice Act," P.L. , c. (C. ) (now pending before the Legislature as this bill) shall not be eligible for State special education aid pursuant to section 14 of P.L.1990, c.52 (C.18A:7D-16) or aid for bilingual pupils pursuant to section 81 of P.L.1990, c.52 (C.18A:7D-21).

10. (New section) A school district of residence shall make available to its pupils and parents and guardians of pupils by November 1 of each school year a list of the schools participating in the "School Freedom of Choice Act," P.L. , c. (C. ) (now pending before the Legislature as this bill). The list shall be annually prepared by the Commissioner of Education and provided to each school district.

Public and nonpublic schools accepting pupils pursuant to that act shall make available to interested persons information about the district, schools, programs, policies and procedures.

11. (New section) The commissioner shall take such steps, including the initiation of litigation, as may be necessary to recapture from the parent or guardian of a pupil any funds, including local levy supplements, provided under the "School Freedom of Choice Act," P.L. , c. (C. )(now pending before the Legislature as this bill) which are not directly expended for the educational programs provided thereunder.

12. (New section) a. Transportation shall be provided to pupils attending a nonpublic school under the "School Freedom of Choice Act," P.L. , c. (C. )(now pending before the Legislature as this bill) pursuant to the provisions of N.J.S.18A:39-1.

b. For pupils attending a public school pursuant to the "School Freedom of Choice Act," P.L. , c. (C. )(now pending before the Legislature as this bill) who reside more than two miles from the school of attendance for elementary school pupils or two and one-half miles for secondary school pupils, the school district of residence shall provide transportation from the residence of the pupil to the school of attendance. However, if the lowest bid received for providing such transportation exceeds $675, or the amount determined for nonpublic school transportation costs per pupil pursuant to N.J.S.18A:39-1a, the district shall not be required to provide such transportation and the parent or guardian of the pupil to be transported shall be eligible to receive $675, or the amount determined for nonpublic school transportation costs per pupil pursuant to N.J.S.18A:39-1a. If the school district of residence does not provide transportation to public school pupils pursuant to N.J.S.18A:39-1, the school district of attendance shall provide the transportation required pursuant to this section. If neither the school district of residence nor the school district of attendance provide transportation to public school pupils pursuant to N.J.S.18A:39-1, neither district shall be required to provide transportation pursuant to this section, and the parent or guardian of the pupil to be transported shall be eligible to receive $675, or the amount determined for nonpublic school transportation costs per pupil pursuant to N.J.S.18A:39-1a. Any school district providing transportation pursuant to this section shall receive State transportation aid pursuant to section 16 of P.L.1990, c.52 (C.18A:7D-18).

13. (New section) No funds provided to a parent or guardian pursuant to the "School Freedom of Choice Act," P.L. , c. (C. )(now pending before the Legislature as this bill) shall be considered income to the recipient for State income tax purposes.

14. 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 number of 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.

"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.

"Foundation aid attributable to a pupil" means an amount equal to the average per pupil foundation aid received by a district for all pupils in the same grade as the pupil seeking enrollment under the "School Freedom of Choice Act," P.L. , c. (C. ) (now pending before the Legislature as this bill.) This amount shall be calculated using the foundation weights for the appropriate grade level set forth in section 6 of P.L.1990, c.52 (C.18A:7D-6).

"Local levy budget" means the sum of the foundation aid and transition aid received by a school district and the district's local levies for current expense and capital outlay.

"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 (C.18A: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 levies for current expense and capital outlay. 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.

"Nonpublic school" means an elementary or secondary school within the State, other than a public school, offering education for grades kindergarten through 12, or any combination of them, wherein any child may legally fulfill compulsory school attendance requirements and which complies with the requirements of Title VI of the Civil Rights Act of 1964, Pub.L. 88-352 (42 U.S.C. §2000d et seq.).

"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 number of 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 ; or (6) a public school in the State pursuant to the "School Freedom of Choice Act," P.L. , c. (C. )(now pending before the Legislature as this bill) .

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 sum of the current expense and capital outlay tax levies for all school districts, other than county vocational school and county special services school districts, in the State for the pre-budget 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.1991, c.62, s.1)

15. (New section) For the purposes of calculating each district's maximum permissible net budget pursuant to section 85 of P.L.1990, c.52 (C.18A:7D-28), a district's local levy budget shall include its foundation aid entitlement prior to any deductions made as a result of the "School Freedom of Choice Act," P.L. , c. (C. ) (now pending before the Legislature as this bill) and shall exclude any tuition payments whether paid through the school choice grant amount, local levy supplement or parental contribution made to the district as a result of that act. The Commissioner of Education shall make any adjustments to a district's maximum permissible net budget or equity spending cap which may be necessary as a result of that act.

16. (New section) There is established within the Property Tax Relief Fund a dedicated account to be known as the "School Choice Fund." The Treasurer shall deposit into the fund all foundation aid which has been calculated pursuant to the provisions of section 4 of P.L.1990, c.52 (C.18A:7D-4) but not distributed to a school district along with any other appropriation which may from time to time be made by the Legislature. The monies in the fund shall be used for the purposes designated in the "School Freedom of Choice Act," P.L. , c. (C. ) (now pending before the Legislature as this bill).

17. (New section) a. Any eleventh or twelfth grade student enrolled in a public or nonpublic secondary school within the State may, provided substantially similar courses are not being offered by the district of residence, take up to the equivalent of two year-long courses offered by a public institution or participating private institution of higher education within the State pursuant to the provisions of P.L.1986, c.193 (C.18A:61C-4 et seq.) or P.L.1986, c.194 (C.18A:61C-1 et seq.) and the State shall pay the tuition and fees for these courses.

b. All public institutions and participating private institutions of higher education shall determine which courses may be used for this program. Students shall be provided with a comprehensive list of course offerings before high school scheduling begins. The institution may require students to meet appropriate academic prerequisites for admission into courses.

c. A student who successfully completes a post-secondary course under this program shall be awarded both secondary and post-secondary credit.

18. (New section) a. Any school district in the State may establish a program of school choice within the district pursuant to regulations to be promulgated by the State Board of Education.

b. The State Board of Education shall establish training centers for intradistrict school choice programs utilizing districts which have already adopted an intradistrict school choice program. The training centers shall provide: (1) information to districts as to the possibility of adopting a school choice program, and (2) technical assistance in the implementation of a school choice program. School districts providing training shall receive State aid to compensate them for the costs of the training program and school districts seeking to implement a school choice program shall receive a State grant to cover necessary planning costs in an amount determined on a per pupil basis by the State Board of Education.

c. Any school district which implements an intradistrict school choice program shall have installed within the schools of the district, at State expense, educational telecommunication connections including those for instructional television and cable.

d. Any school district which implements or has implemented an intradistrict school choice program shall also be eligible for a waiver of any State Board of Education regulations concerning school governance, operations, facilities or curriculum.

19. (New section) A board of education which implements or has implemented a school choice program within the district pursuant to section 18 of P.L. , c. (C. )(now pending before the Legislature as this bill) may establish a teacher-parent cooperative school pursuant to the following requirements:

a. A board of education may authorize a group of certified teachers to form and operate a teacher-parent cooperative school subject to the approval of the State Board of Education.

b. The board of education's authorization for a teacher-parent cooperative school shall be in the form of a written charter signed by the board of education and the board of directors of the teacher-parent cooperative school. The form of the charter shall follow regulations promulgated by the State Board of Education. The charter shall expire on a specified date, subject to renewal.

c. The board of education shall notify the State Board of Education of its intent to authorize a teacher-parent cooperative school. The notice shall state the terms and conditions under which the board of education will authorize a teacher-parent cooperative school and shall describe the philosophy, program and expected outcomes of the proposed school. The notice shall indicate any regulations of the State Board of Education for which the teacher-parent cooperative school seeks a waiver. The State board shall approve or disapprove the board of education's proposed authorization within 60 days of receipt of the notice. The failure to obtain State board approval shall preclude the board of education from authorizing a teacher-parent cooperative school.

d. A board of education may authorize a maximum of two teacher-parent cooperative schools. During the first five years following enactment of the "School Freedom of Choice Act," P.L. , c. (C. ) (now pending before the Legislature as this bill), the State Board of Education shall authorize no more than two school districts in each county to establish a teacher-parent cooperative school.

20. (New section) A teacher-parent cooperative school may limit admission to pupils within an age group or grade level, or to pupils who have a specific affinity for the school's teaching methods, the school's learning philosophy, or a subject such as mathematics, science, fine arts, performing arts, or a language.

The school shall enroll any eligible pupil who submits a timely application, unless the number of applications exceeds the capacity of a program, class, grade level, or building. In this case, pupils shall be accepted by lot.

A teacher-parent cooperative school shall not limit admission to pupils on the basis of intellectual ability, measures of achievement or aptitude, or athletic ability.

21. (New section) a. The teachers authorized to organize and operate a teacher-parent cooperative school shall hold an annual election for members of the school's board of directors. All staff members employed at the school and all parents of children enrolled in the school are eligible for membership on the board of directors and may participate in the election.

b. The board of directors of a teacher-parent cooperative school shall have the sole authority to employ, discharge and contract with necessary teachers and nonlicensed employees, subject to the school's charter and regulations which may be promulgated by the State Board of Education.

c. The board of directors shall also have the sole authority to decide matters related to the operation of the school, including budgeting, curriculum, and operating procedures, subject to the school's charter and regulations which may be promulgated by the State Board of Education.

22. (New section) If a teacher employed by a school district makes a written request for a transfer to teach at a teacher-parent cooperative school, the school district shall grant the transfer, subject to the availability of positions at the teacher-parent cooperative school as indicated in the school charter, and the teacher shall retain all tenure and seniority rights. The school district may require that the request for transfer be made no later than 90 days before the teacher would otherwise have to report for duty.

23. (New section) Each teacher-parent cooperative school shall report annually to the board of education and the State Board of Education. The reports shall be made on a form prescribed by the State board and shall be made available to the public.

24. (New section) A teacher-parent cooperative school shall be funded in the same manner as are the other schools of the district, pursuant to regulations established by the State Board of Education.

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

26. This act shall take effect immediately and shall first be applicable to State school aid for the 1993-94 school year.

STATEMENT

This bill establishes the "School Freedom of Choice Act" to give pupils expanded educational opportunities and to increase the role of parents in the educational process. The program of school choice provided by the bill recognizes that no one school or program can satisfy the needs of all children. By allowing parents to choose the best school or program for their child, choice will lead to improved educational performance for all children. Choice will also motivate all schools, both public and nonpublic, to improve their programs and to become more responsive and productive.

The bill establishes a public school freedom of choice program which permits any pupil to attend a school or program in a district outside the pupil's district of residence. However, no district would be required to accept nonresident pupils into its schools or programs. The parent or guardian of the pupil would receive tuition reimbursement in the amount of $1,250 for an elementary school pupil, $1,400 for a middle school pupil and $1,750 for a high school pupil. The nonresident district will receive State aid, to be credited toward the pupil's tuition, equal to the pupil's foundation aid minus the school choice grant amount. The district of residence may supplement this amount with local revenues. The nonresident district will also receive any special education, bilingual or at-risk aid for which the pupil qualifies.

The resident district must provide the pupil with transportation to the school of attendance or, if the costs of the transportation exceeds $675, the parent or guardian of the pupil will be eligible to receive $675 to defray the costs of transportation.

The bill provides that any pupil may attend an eligible nonpublic school within the State and have the tuition reimbursed by the State up to $1,250 for an elementary school pupil, $1,400 for a middle school pupil and $1,750 for a high school pupil. The district of residence may supplement this amount with local revenues. The tuition reimbursement will be paid directly to the parent or guardian of the pupil and may not exceed the tuition rate established by the nonpublic school. Where the tuition exceeds the aid entitlement, the pupil's parents may be required to pay the difference.

Under the bill, pupils in eleventh and twelfth grade may also enroll in up to the equivalent of two year-long courses offered by an institution of higher education and have the tuition and fees paid by the State.

The bill also encourages the establishment of intradistrict choice programs through the creation of training centers, grants for program planning, waivers of State board regulations, and incentives involving educational telecommunication connections.

Finally, the bill authorizes the establishment of teacher-parent cooperative schools in any district which implements an intradistrict school choice program. The school's board of directors, elected by the staff and parents of pupils, will have authority over the governance, operations, personnel and curriculum of the school. The school, however, will be funded in the same manner as are the other schools in the district. The teacher-parent cooperative schools are intended to involve teachers in all aspects of the educational process and give them the maximum amount of freedom possible to set educational goals and devise ways to achieve them.

Schools involved in an intradistrict choice program and teacher-parent cooperative schools are given the option of seeking waivers of State board regulations in order to provide a stimulus to meet educational objectives in novel and creative ways.

The "School Freedom of Choice Act."