SCR127

A Concurrent Resolution proposing to amend Article VIII, Section IV, paragraph 1 of the Constitution of the State of New Jersey.

Whereas, The people of New Jersey have a long record of placing a high priority on the funding of public education; and

Whereas, In this State approximately $12 billion is spent on the public school system; and

Whereas, In the 1996-97 school year, it is estimated that approximately 59.9% of the funding for elementary and secondary public school education in New Jersey will come from local property taxes; and

Whereas, Currently, New Jersey has the second highest per-capita property tax in the nation, ranking only behind New Hampshire, a State which has no sales tax or income tax; and

Whereas, The property tax is widely recognized as the most regressive tax in the State; and

Whereas, Senior citizens are bearing an increasingly unfair share of the property tax burden due to their fixed incomes which do not allow them to keep pace with the growth of property taxes; and

Whereas, In 1994 the State of Michigan significantly reduced its reliance on local property taxes to fund its public schools and now relies predominately on various other State taxes including an increased sales tax; and

Whereas, Property taxes should be reduced by requiring that the State provide the monies to fund the core curriculum content standards in order to relieve the property tax burden felt by senior citizens and others to the extent possible; now, therefore,

Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):

1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

1. The Legislature shall provide for the maintenance and support of a thorough and efficient system of free public schools for the instruction of all children in the State between the ages of five and 18 years. Maintenance and support shall be provided by the funding of a system of free public schools through a combination of State and local taxing district revenues. However, beginning in the 2000-2001 school year and thereafter, no local real property taxes shall be assessed, levied or collected in order to fund the schools to provide the core curriculum content standards. Beginning in the 2000-2001 school year and thereafter, the funding necessary to provide the core curriculum content standards shall be provided by the State from State revenues in a manner provided by law upon the recommendation of a commission established by law. The commission shall recommend to the Legislature two State revenue raising plans to fund the core curriculum content standards. The revenue raising plans shall not recommend the use of revenue sources that would result in a reduction in the level of aid appropriated to municipalities, school districts, and counties and the level of aid appropriated for programs that provide a direct benefit to individuals, below the total levels of aid appropriated therefor in the annual appropriations act for the fiscal year in which this amendment is adopted. The Legislature shall enact one of the plans, or any combination of the two plans, within six months of their submission to the Legislature. If the Legislature fails to enact one of the plans, or any combination of the two plans, in the allotted time period, then the plans shall be submitted to the Secretary of State to prepare them as public questions to be placed on the ballot at the general election next occurring 70 or more days after the six month period following the submission of the plans to the Legislature. The plan with the greatest number of affirmative votes shall prevail and determine which State revenues fund the core curriculum content standards. The Legislature may enact changes to the revenue raising plan by which State revenues are used to fund the core curriculum content standards, but the total funding for the core curriculum content standards shall not be reduced unless such a reduction has been submitted to the people at a general election and approved by a majority of the legally qualified voters of the State voting thereon.

2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Secretary of State, not less than three months prior to the general election.

3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

There shall be printed on each official ballot to be used at the general election, the following:

a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question, as follows:

If you favor the proposition printed below make a cross (X), plus (+) or check (•) in the square opposite the word "Yes" If you are opposed thereto make a cross (X), plus (+) or check (•) in the square opposite the word" No."

YES

LIMIT ON USE OF LOCAL REAL PROPERTY TAXES FOR THOROUGH AND EFFICIENT EDUCATION

Do you approve the amendment of Article VIII, Section IV, paragraph l of the Constitution of the State of New Jersey, to provide: (1) the support of the public schools through a combination of State revenues and local tax revenues with, beginning in the 2000-2001 school year and thereafter, local real property taxes not being used to fund the core curriculum content standards and the State providing the State revenues to fund the core curriculum content standards in a manner provided by law; (2) a commission being established to recommend to the Legislature two plans for determining the manner in which State funds for the core curriculum content standards will be raised; (3) the plans could not recommend the use of revenue sources that would result in a reduction in the level of aid appropriated to municipalities, school districts, and counties and programs that provide direct benefits to individuals, below the total level of aid appropriated therefore in the annual appropriations act for the fiscal year in which this amendment is adopted; (4) the Legislature enacting one of the plans, or any combination of the two plans, within six months of the submission of the plans to the Legislature; (5) if the Legislature fails to enact one of the plans, or any combination of the two plans, then the submission of the plans to the voters at the general election next occurring 70 or more days after the six month period following submission of the plans to the Legislature with the plan receiving the greatest number of affirmative votes determining which State revenues fund the core curriculum content standards; and (6) the Legislature being permitted to enact changes to the plan for funding the core curriculum content standards, but the total funding for the standards not being reduced unless the reduction has been authorized by the voters of the State?

INTERPRETIVE STATEMENT

If approved, this constitutional amendment would prescribe the manner in which funding shall be provided for the maintenance and support of a thorough and efficient system of free public schools throughout the State. The system is to be funded by a combination of State revenues and locally raised tax revenue. However, for the 2000-2001 school year and thereafter, local real property taxes could not be used to fund the core curriculum content standards and the State would be responsible for the funding of the core curriculum content standards with State revenue. A commission established by law would organize 30 days after all appointments to the commission are made and would recommend and submit to the Legislature two State revenue raising plans for funding the core curriculum content standards. The recommended plans could not use sources of revenue already appropriated for aid programs. If the Legislature does not enact one of the plans, or any combination of the two plans, within a six month period after the submission of the plans, then the two plans will be submitted to the Secretary of State to be put on the ballot at the general election occurring 70 or more days after the six month period following the submission of the plans to the Legislature. The plan that receives the greatest number of affirmative votes would be the method by which State revenues fund the core curriculum content standards. The Legislature would be permitted to enact changes to the plan for funding the core curriculum content standards, but a reduction in the total funding for the standards would have to be approved by the voters of the State. The core curriculum content standards were adopted by the State Board of Education in May of 1996. The standards define the substance of a thorough and efficient education, that is what a New Jersey student needs to know and be able to do.

This proposed amendment would limit the use of local real property taxes to fund the system of free public schools to relieve the burden of supporting the public schools put upon many local municipalities. This proposed amendment specifies that for the 2000-2001 school year and thereafter local real property taxes cannot be used to fund the core curriculum content standards. The State would be responsible for funding the core curriculum content standards with State revenues.

The proposed amendment further provides that a commission, to be established by companion legislation, would recommend to the Legislature two plans for raising State revenues to fund the core curriculum content standards. The recommended plans would not be permitted to use sources of revenue already appropriated for aid programs. The Legislature would have six months to enact one of these plans, or any combination of the two plans, or the two plans would be submitted to the Secretary of State to be placed on the ballot at the general election occurring 70 or more days after the six month period following the submission of the plans to the Legislature. The plan that receives the greatest number of affirmative votes in the election would be the method by which State revenues are raised to fund the core curriculum content standards. The Legislature would be permitted to enact changes to the plan for funding the core curriculum content standards, but any reduction in the total funding for the standards would have to be approved by the voters of the State.

This constitutional amendment is a companion to S of 1997 which establishes the Public School Educational Funding Commission.

Proposes an amendment to the Constitution to prohibit the use of local real property taxes for funding the core curriculum content standards.