Bill Text: NJ A5121 | 2018-2019 | Regular Session | Introduced


Bill Title: Authorizes replacement of certain adjusted tax levy for school districts that had reduction in State aid in 2018-2019 school year.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2019-03-05 - Introduced, Referred to Assembly Education Committee [A5121 Detail]

Download: New_Jersey-2018-A5121-Introduced.html

ASSEMBLY, No. 5121

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED MARCH 5, 2019

 


 

Sponsored by:

Assemblyman  RONALD S. DANCER

District 12 (Burlington, Middlesex, Monmouth and Ocean)

Assemblyman  ROBERT D. CLIFTON

District 12 (Burlington, Middlesex, Monmouth and Ocean)

 

 

 

 

SYNOPSIS

     Authorizes replacement of certain adjusted tax levy for school districts that had reduction in State aid in 2018-2019 school year.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the adjusted tax levy of certain school districts and supplementing P.L.2007, c.62 (C.18A:7F-37 et al.).

 

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

 

     1.    Notwithstanding the provisions of subsection e. of section 4 of P.L.2007, c.62 (C.18A:7F-39) or any other section of law to the contrary, a school district that pursuant to P.L.2018, c.53, the FY 2019 annual appropriations act, had a State aid ratio greater than 1.0 and a reduction in State aid in the 2018-2019 school year, may add to its adjusted tax levy in any one of the next three succeeding budget years the adjusted tax levy amount that expired at the end of the 2018-2019 school budget year pursuant to the provisions of subsection e. of section 4 of P.L.2007, c.62 (C.18A:7F-39).

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     Under current law, if a school district does not raise the maximum allowable amount of tax levy in a budget year, it may add to its adjusted tax levy in any one of the next three succeeding budget years, the amount of the difference between the maximum allowable tax levy amount and the actual amount raised in the budget year.  After the third budget year, the authorization to include this amount expires.

     This bill provides that in the case of a school district that pursuant to P.L.2018, c.53, the FY 2019 annual appropriations act, had a State aid ratio greater than 1.0 and a reduction in State aid in the 2018-2019 school year, the district may add to its adjusted tax levy in any one of the next three succeeding budget years the tax levy amount that expired at the end of the 2018-2019 school year.

     The purpose of this bill is to address the situation of school districts that were informed, just prior to the start of the 2018-2019 school year, that their State aid would be reduced.  These districts had originally been advised of the amount of State aid that they would receive in the 2018-2019 school year when the State aid numbers were released by the Department of Education in March of 2018.  Relying upon these numbers, the school districts submitted their budgets to the department for approval and adopted their budgets in accordance with the procedures established pursuant to law.  Subsequently, with the Legislature's adoption and the Governor's approval of the FY 2019 annual appropriations act, these districts learned that their State aid would in fact be reduced below the original numbers.  The ability to use the additional tax levy funds that were set to expire at the end of the 2018-2019 school year pursuant to the State's "cap banking" law, in order to address the reduction in State aid, was lost.  This bill restores the expired cap banking amounts to these school districts.

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