Bill Text: NJ S4061 | 2018-2019 | Regular Session | Introduced


Bill Title: Provides that certain school districts will not be subject to reduction in State school aid.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-08-23 - Introduced in the Senate, Referred to Senate Education Committee [S4061 Detail]

Download: New_Jersey-2018-S4061-Introduced.html

SENATE, No. 4061

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED AUGUST 23, 2019

 


 

Sponsored by:

Senator  BOB ANDRZEJCZAK

District 1 (Atlantic, Cape May and Cumberland)

 

 

 

 

SYNOPSIS

     Provides that certain school districts will not be subject to reduction in State school aid.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning State school aid and supplementing P.L.2018 c.67 (C.18A:7F-67 et al.).

 

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

 

     1.    a.  Notwithstanding the provisions of section 4 of P.L.2018, c. 67 (C.18A:7F-68) to the contrary, a school district that meets the following criteria shall not be subject to a reduction in State aid pursuant to subsection b. of that section:

     (1)   the school district is in a municipality located in a county of the fifth class according to the 2010 federal decennial census;

     (2)   the school district operates a preschool through grade eight school and sends its grades 9 through 12 students to a regional school district located in the same county pursuant to a sending- receiving relationship;

     (3)   the municipality in which the school district is located has a population greater than 2,500 but less than 3,000 according to the 2010 federal decennial census; and

     (4)   at least 30 percent of the residents of the municipality in which the district is located live in manufactured homes in a mobile home park for persons aged 55 or over.

     b.    Any reduction in the school district's State aid for the 2019-2020 school year or any subsequent school year made pursuant to subsection b. of section 4 of P.L.2018, c.67 (C.18A:7F-68) prior to the enactment of this act shall be appropriated to the school district upon the enactment of this act.

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill provides that a school district which meets the criteria outlined in the bill will not be subject to reductions in State school aid under P.L.2018, c.67 (C.18A:7F-67 et al.), commonly referred to as S-2.  One of the criteria established under the bill is that at least 30 percent of the residents of the municipality in which the school district is located live in manufactured homes in a mobile home park for persons aged 55 or over.  Under State law, these homeowners rent land for their manufactured home from the developer of the mobile home park.  The developer pays property tax on the value of the land, but owners of the manufactured homes themselves are exempt from property taxes on the value of their homes.  Under the State's school funding law, the "School Funding Reform Act of 2008" (SFRA), P.L.2007, c.260 (C.18A:7F-43 et al.), the amount that a local community may raise to supports its schools, the local share, is based on both the property wealth (equalized valuation) of the school district and the income of its residents.  In communities in which a significant number of residents live in manufactured homes and the value of the homes is not subject to property taxes, but the income of the residents who live in those manufactured homes is being included in the calculation of district income, the local share calculation is skewed, and as a result may lead to an increased local share for such communities.  This bill provides that in such situations, the school district will not be subject to a reduction in State aid under S-2.

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