ASSEMBLY, No. 2276

 

STATE OF NEW JERSEY

 

INTRODUCED JULY 18, 1996

 

 

By Assemblyman ROMANO

 

 

An Act concerning the remittance of certain debt service funds by boards of education and supplementing chapter 22 of Title 18A of the New Jersey Statutes.

 

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

 

    1. Notwithstanding the provisions of any other law to the contrary, a board of education of a type I school district that is also a special needs district as defined under section 3 of P.L.1990, c.52 (C.18A:7D-3) is authorized to remit to the governing body of the municipality comprising the school district supplemental debt service funds. The supplemental debt service funds shall not exceed the difference between the amount of State debt service aid entitlement calculated pursuant to section 18 of P.L.1990, c.52 (C.18A:7D-22) and the amount of debt service aid actually received by the municipality for that budget year.

 

    2. This act shall take effect immediately.

 

 

STATEMENT

 

    This bill authorizes the board of education of any type I school district that is also a special needs district to remit to the municipal governing body supplemental debt service funds. The supplemental debt service funds shall not exceed the difference between State debt service aid entitlement calculated under the "Quality Education Act of 1990" and the amount of debt service aid actually received pursuant to the Annual Appropriations Act. Under the proposed FY 1997 budget, each eligible school district in the State will receive 58 percent of its State debt service aid entitlement as a result of the State under-funding the debt service aid program. For type I school districts, the municipalities are responsible for the issuance of school bonds as well as making the debt service payments. Therefore, the under-funded debt service aid amounts are included in their municipal budgets and raised by taxation. This bill would permit school districts to pay an amount up to the level of the under-funded debt service aid.

 

 

                             

 

Permits type I special needs districts to remit supplemental debt service funds to municipalities.