ASSEMBLY EDUCATION COMMITTEE

STATEMENT TO

ASSEMBLY CONCURRENT RESOLUTION No. 1

STATE OF NEW JERSEY

DATED: JUNE 17, 1996

      The Assembly Education Committee favorably reports an Assembly Concurrent Resolution No. 1.

      This concurrent resolution proposes an amendment to the State Constitution to authorize the enactment of a cigarette tax increase and to dedicate that increase to funding the construction and renovation of public school facilities as may be necessary to maintain and support a thorough and efficient system of free public schools as required by the Constitution. The tax increase would equal $0.25 per 20 pack of cigarettes and would increase the current tax of $0.40 per pack to $0.65 per pack. The amount raised under the tax increase would be required to be appropriated in addition to the amount appropriated by the State for the costs of public school facilities in the fiscal year in which the amendment is adopted.

      The current level of State aid for school district facilities is $70 million and the cigarette tax increase would net an additional $130 million in cigarette tax revenues. The tax increase is pending in a companion bill, Assembly Bill No. 2157, which would take effect on January 1, 1997 only if this constitutional amendment is first approved by the voters.