ASSEMBLY EDUCATION COMMITTEE

STATEMENT TO

ASSEMBLY, No. 2836

with committee amendments

STATE OF NEW JERSEY

DATED: MAY 5, 1997

      The Assembly Education Committee reports favorably Assembly Bill No. 2836 with committee amendments.

      As amended by committee, this bill amends the "Educational Improvement and Financing Act of 1996," P.L.1996, c.138, to extend eligibility for supplemental school tax reduction aid to school districts which are included within the Department of Education's district factor groups I and J if the district meets the other requirements for receipt of that aid. Under current law, in order to receive such aid, a district must have a 1996-97 net budget per pupil which is less than 115% of the State average net budget per pupil; have a 1996-97 equalized tax rate which is greater than 130% of the Statewide average equalized school tax rate; not be eligible to receive supplemental core curriculum standards aid; and not be included within district factor groups I and J. This bill eliminates the prohibition against the participation of I and J school districts in this aid program.

      Under the school funding law in its current form, 55 school districts will receive supplemental school tax reduction aid in the 1997-98 school year in a total amount of $10.7 million. This bill appropriates to the Department of Education $643,231, the amount which will be required to provide supplemental school tax reduction aid to three district factor group I and J districts which will be eligible for that aid pursuant to the bill's provisions.

      The committee amended the bill to include an appropriation.