Property Taxes, School Funding issues

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5-7-08 EDUCATION COMMITTEE GEARING UP FOR ACTION
THE ASSEMBLY EDUCATION COMMMITTEE WILL MEET MONDAY 5-12-08 at 2 p.m. in COMMITTEE ROOM 11. Among others items, included on its agenda are the following bills: A15 Provides for the election of school board members at November general election and eliminates vote on school budgets except for separate proposals to spend above cap which will also occur at general election; A113 Eliminates one-year notice that a school district is required to give superintendent of schools if the district determines not to reappoint; A10 Requires certain school districts to reduce per pupil administrative expenditures by 10% over three-year period, certain reporting by executive county superintendents of schools, and schedule for appointment of such superintendents. Call Lynne Strickland at 609 394 2828 if you are interested in attending the committee hearing. CLICK ON MORE HERE FOR DETAILS/BILLS

THE ASSEMBLY EDUCATION COMMMITTEE WILL MEET MONDAY 5-12-08 at 2 p.m. in COMMITTEE ROOM 11.

 

Among others items, included on its agenda are the following bills: A15 Provides for the election of school board members at November general election and eliminates vote on school budgets except for separate proposals to spend above cap which will also occur at general election; A113 Eliminates one-year notice that a school district is required to give superintendent of schools if the district determines not to reappoint; A10 Requires certain school districts to reduce per pupil administrative expenditures by 10% over  three-year period, certain reporting by executive county superintendents of schools, and schedule for appointment of such superintendents. CLICK ON MORE HERE FOR DETAILS/BILLS

 

 

 

ASSEMBLY, No. 10  - INTRODUCED MAY 5, 2008

Sponsored by: Assemblyman JOSEPH J. ROBERTS, JR. District 5 (Camden, Gloucester)

 

SYNOPSIS

     Requires certain school districts to reduce per pupil administrative expenditures by 10% over  three-year period, certain reporting by executive county superintendents of schools, and schedule for appointment of such superintendents.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning the administrative operations of school districts, amending P.L.1996, c.138, and supplementing chapter 7 of Title 18A of the New Jersey Statutes.

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

    1.  Section 5 of P.L.1996, c.138 (C.18A:7F-5) is amended to read as follows:

     5.    As used in this section, "cost of living" means the CPI as defined in section 3 of P.L.2007, c.260 (C.18A:7F-45).

     a.     Within 30 days following the approval of the Educational Adequacy Report, the commissioner shall notify each district of the base per pupil amount, the per pupil amounts for full-day preschool, the weights for grade level, county vocational school districts, at-risk pupils, bilingual pupils, and combination pupils, the cost coefficients for security aid and for transportation aid, the State average classification rate and the excess cost for general special education services pupils, the State average classification rate and the excess cost for speech-only pupils, and the geographic cost adjustment for each of the school years to which the report is applicable.

     Annually, within two days following the transmittal of the State budget message to the Legislature by the Governor pursuant to section 11 of P.L.1944, c.112 (C.52:27B-20), the commissioner shall notify each district of the maximum amount of aid payable to the district in the succeeding school year pursuant to the provisions of P.L.2007, c.260 (C.18A:7F-43 et al.), and shall notify each district of the district's adequacy budget for the succeeding school year.

     For the 2008-2009 school year and thereafter, unless otherwise specified within P.L.2007, c.260 (C.18A:7F-43 et al.), aid amounts payable for the budget year shall be based on budget year pupil counts, which shall be projected by the commissioner using data from prior years.  Adjustments for the actual pupil counts of the budget year shall be made to State aid amounts payable during the school year succeeding the budget year.  Additional amounts payable shall be reflected as revenue and an account receivable for the budget year.

     Notwithstanding any other provision of this act to the contrary, each district's State aid payable for the 2008-2009 school year, with the exception of aid for school facilities projects, shall be based on simulations employing the various formulas and State aid amounts contained in P.L.2007, c.260 (C.18A:7F-43 et al.).  The
commissioner shall prepare a report dated December 12, 2007 reflecting the State aid amounts payable by category for each district and shall submit the report to the Legislature prior to the adoption of P.L.2007, c.260 (C.18A:7F-43 et al.).  Except as otherwise provided pursuant to this subsection and paragraph (3) of subsection d. of section 5 of P.L.2007, c.260 (C.18A:7F-47), the amounts contained in the commissioner's report shall be the final amounts payable and shall not be subsequently adjusted other than to reflect the phase-in of the required general fund local levy pursuant to paragraph (4) of subsection b. of section 16 of P.L.2007, c.260 (C.18A:7F-58) and to reflect school choice aid to which a district may be entitled pursuant to section 20 of that act. The projected pupil counts and equalized valuations used for the calculation of State aid shall also be used for the calculation of adequacy budget, local share, and required local share.  For 2008-2009, extraordinary special education State aid shall be included as a projected amount in the commissioner's report dated December 12, 2007 pending the final approval of applications for the aid.  If the actual award of extraordinary special education State aid is greater than the projected amount, the district shall receive the increase in the aid payable in the subsequent school year pursuant to the provisions of subsection c. of section 13 of P.L.2007, c.260 (C.18A:7F-55).  If the actual award of extraordinary special education State aid is less than the projected amount, other State aid categories shall be adjusted accordingly so that the district shall not receive less State aid than as provided in accordance with the provisions of sections 5 and 16 of P.L.2007, c.260 (C.18A:7F-47 and C.18A:7F-58).

     In the event that the commissioner determines, following the enactment of P.L.2007, c.260 (C.18A:7F-43 et al.) but prior to the issuance of State aid notices for the 2008-2009 school year, that a significant district-specific change in data warrants an increase in State aid for that district, the commissioner may adjust the State aid amount provided for the district in the December 12, 2007 report to reflect the increase.

     b.    Each district shall have a required local share.  For districts that receive educational adequacy aid pursuant to subsection b. of section 16 of P.L.2007, c.260 (C.18A:7F-58), the required local share shall be calculated in accordance with the provisions of that subsection.

     For all other districts, the required local share shall equal the lesser of the local share calculated at the district's adequacy budget pursuant to section 9 of P.L.2007, c.260 (C.18A:7F-51), or the district's budgeted local share for the prebudget year.

     In order to meet this requirement, each district shall raise a general fund tax levy which equals its required local share.

     No municipal governing body or bodies or board of school estimate, as appropriate, shall certify a general fund tax levy which does not meet the required local share provisions of this section.

     c.     Annually, on or before March 4, each district board of education shall adopt, and submit to the commissioner for approval, together with such supporting documentation as the commissioner may prescribe, a budget that provides for a thorough and efficient education. Notwithstanding the provisions of this subsection to the contrary, the commissioner may adjust the date for the submission of district budgets if the commissioner determines that the availability of preliminary aid numbers for the subsequent school year warrants such adjustment.

     Notwithstanding any provision of this section to the contrary, for the 2005-2006 school year each district board of education shall submit a proposed budget in which the advertised per pupil administrative costs do not exceed the lower of the following:

     (1)   the district's advertised per pupil administrative costs for the 2004-2005 school year  inflated by the cost of living or 2.5 percent, whichever is greater; or

     (2)   the per pupil administrative cost limits for the district's region as determined by the commissioner based on audited expenditures for the 2003-2004 school year.

     The executive county superintendent of schools may disapprove the school district's 2005-2006 proposed budget if he determines that the district has not implemented all potential efficiencies in the administrative operations of the district.  The executive county superintendent shall work with each school district in the county during the 2004-2005 school year to identify administrative inefficiencies in the operations of the district that might cause the superintendent to reject the district's proposed 2005-2006 school year budget.

     For the 2006-2007 [school year and each school year thereafter] through 2011-2012 school years, each district board of education shall submit a proposed budget in which the advertised per pupil administrative costs do not exceed the lower of the following:

     (1)   the district's prior year per pupil administrative costs; except that the district may submit a request to the commissioner for approval to exceed the district's prior year per pupil administrative costs due to increases in enrollment, administrative positions necessary as a result of mandated programs, administrative vacancies, nondiscretionary fixed costs, and such other items as defined in accordance with regulations adopted pursuant to section 7 of P.L.2004, c.73.  In the event that the commissioner approves a district's request to exceed its prior year per pupil administrative costs, the increase authorized by the commissioner shall not exceed the cost of living or 2.5 percent, whichever is greater; or

     (2)   the prior year per pupil administrative cost limits for the district's region inflated by the cost of living or 2.5 percent, whichever is greater; except that for the 2009-2010 through 2011-2012 school years, the prior year per pupil administrative cost limits for the district’s region shall not be inflated.

     If in the 2009-2010 school year a district’s allowable per pupil administrative costs are calculated pursuant to paragraph (2), the district, in the 2009-2010 school year and in each of the following two school years, shall make a reduction in its per pupil administrative costs in such amount as to ensure that by the 2011-2012 school year the district’s per pupil administrative costs shall be no more than 90% of the 2008-2009 per pupil administrative cost limits for the district’s region.

     For the 2012-2013 school year and for each school year thereafter, each district board of education shall submit a proposed budget in which the advertised per pupil administrative costs do not exceed the district’s prior year per pupil administrative costs; except that the district may submit a request to the commissioner for approval to exceed the district's prior year per pupil administrative costs due to increases in enrollment, administrative positions necessary as a result of mandated programs, administrative vacancies, nondiscretionary fixed costs, and such other items as defined in accordance with regulations adopted pursuant to section 7 of P.L.2004, c.73.  In the event that the commissioner approves a district's request to exceed its prior year per pupil administrative costs, the increase authorized by the commissioner shall not exceed the cost of living or 2.5 percent, whichever is greater.

     d. (1) A district shall submit, as appropriate, to the board of school estimate or to the voters of the district at the annual school budget election conducted pursuant to the provisions of P.L.1995, c.278 (C.19:60-1 et al.), a general fund tax levy which when added to the other components of its net budget does not exceed the prebudget year net budget by more than the spending growth limitation calculated as follows: the sum of the cost of living or 2.5 percent, whichever is greater, multiplied by the prebudget year net budget, and adjustments for changes in enrollment, certain capital outlay expenditures, expenditures for pupil transportation services provided pursuant to N.J.S.18A:39-1.1, expenditures incurred in connection with the opening of a new school facility during the budget year, and special education costs per pupil in excess of $40,000.  The adjustment for special education costs shall equal any increase in the sum of per pupil amounts in excess of $40,000 for the budget year less the sum of per pupil amounts in excess of $40,000 for the prebudget year indexed by the cost of living or 2.5 percent, whichever is greater.  The adjustment for enrollments shall equal the increase in weighted resident enrollments between the prebudget year and budget year multiplied by the per pupil general fund tax levy amount for the prebudget year indexed by the cost of living or 2.5 percent, whichever is greater.  The adjustment for capital outlay shall equal any increase between the capital outlay portion of the general fund budget for the budget year less any withdrawals from the capital reserve account and the capital outlay portion of the general fund budget for the prebudget year indexed by the cost of living or 2.5 percent, whichever is greater.  Any district with a capital outlay adjustment to its spending growth limitation shall be restricted from transferring any funds from capital outlay accounts to current expense accounts.  The adjustment for capital outlay shall not become part of the prebudget year net budget for purposes of calculating the spending growth limitation of the subsequent year.  The adjustment for pupil transportation costs provided pursuant to N.J.S.18A:39-1.1 shall equal any increase between the cost of providing such pupil transportation services for the budget year and the cost of providing such pupil transportation services for the prebudget year indexed by the cost of living or 2.5 percent, whichever is greater. The adjustment for the opening of a new school facility shall include costs associated with the new facility related to new teaching staff members, support staff, materials and equipment, custodial and maintenance expenditures, and such other required costs as determined by the commissioner.

     (2)   (Deleted by amendment, P.L.2007, c.260).

     (3)   (Deleted by amendment, P.L.2007, c.260).

     (4)   Any debt service payment made by a school district during the budget year shall not be included in the calculation of the district's spending growth limitation.

     (5)   (Deleted by amendment, P.L.2007, c.260).

     (6)   (Deleted by amendment, P.L.2007, c.260).

     (7)   (Deleted by amendment, P.L.2004, c.73)

     (8)   If an increase in tuition for the budget year charged to a sending district by the receiving district pursuant to the provisions of N.J.S.18A:38-19 would reduce the sending district's per pupil net budget amount below the prior year's per pupil net budget amount in order to comply with the district's spending growth limitation, the district may apply to the commissioner for an adjustment to that limitation.

     (9)   Any district may submit at the annual school budget election a separate proposal or proposals for additional funds, including interpretive statements, specifically identifying the program purposes for which the proposed funds shall be used, to the voters, who may, by voter approval, authorize the raising of an additional general fund tax levy for such purposes.  In the case of a district with a board of school estimate, one proposal for the additional spending shall be submitted to the board of school estimate. Any proposal or proposals submitted to the voters or the board of school estimate shall not: include any programs and services that were included in the district's prebudget year net budget unless the proposal is approved by the commissioner upon submission by the district of sufficient reason for an exemption to this requirement; or include any new programs and services necessary for students to achieve the thoroughness standards established pursuant to subsection a. of section 4 of P.L.2007, c.260 (C.18A:7F-46).

     The executive county superintendent of schools may prohibit the submission of a separate proposal or proposals to the voters or board of school estimate if he determines that the district has not implemented all potential efficiencies in the administrative operations of the district, which efficiencies would eliminate the need for the raising of an  additional general fund tax levy.

     Except as otherwise provided pursuant to paragraph (3) of subsection c. of section 4 of P.L.2007, c.62 (C.18A:7F-39), any proposal or proposals rejected by the voters shall be submitted to the municipal governing body or bodies for a determination as to the amount, if any, that should be expended notwithstanding voter rejection.  The decision of the municipal governing body or bodies or board of school estimate, as appropriate, shall be final and no appeals shall be made to the commissioner.

     (10) Notwithstanding any provision of law to the contrary, if a district proposes a budget with a general fund tax levy and equalization aid which exceed the adequacy budget, the following statement shall be published in the legal notice of public hearing on the budget pursuant to N.J.S.18A:22-28, posted at the public hearing held on the budget pursuant to N.J.S.18A:22-29, and printed on the sample ballot required pursuant to section 10 of P.L.1995, c.278 (C.19:60-10):

     "Your school district has proposed programs and services in addition to the core curriculum content standards adopted by the State Board of Education.  Information on this budget and the programs and services it provides is available from your local school district."

     (11) Any reduction that may be required to be made to programs and services included in a district's prebudget year net budget in order for the district to limit the growth in its budget between the prebudget and budget years by its spending growth limitation as calculated pursuant to this subsection, shall only include reductions to excessive administration or programs and services that are inefficient or ineffective.

     e. (1) Any general fund tax levy rejected by the voters for a proposed budget that includes a general fund tax levy and equalization aid in excess of the adequacy budget shall be submitted to the governing body of each of the municipalities included within the district for determination of the amount that should be expended notwithstanding voter rejection.  In the case of a district having a board of school estimate, the general fund tax levy shall be submitted to the board for determination of the amount that should be expended.  If the governing body or bodies or board of school estimate, as appropriate, reduce the district's proposed budget, the district may appeal any of the reductions to the commissioner on the grounds that the reductions will negatively impact on the stability of the district given the need for long term planning and budgeting.  In considering the appeal, the commissioner shall consider enrollment increases or decreases within the district; the history of voter approval or rejection of district budgets; the impact on the local levy; and whether the reductions will impact on the ability of the district to fulfill its contractual obligations.  A district may not appeal any reductions on the grounds that the amount is necessary for a thorough and efficient education.

     (2)   Any general fund tax levy rejected by the voters for a proposed budget that includes a general fund tax levy and equalization aid at or below the adequacy budget shall be submitted to the governing body of each of the municipalities included within the district for determination of the amount that should be expended notwithstanding voter rejection.  In the case of a district having a board of school estimate, the general fund tax levy shall be submitted to the board for determination.  Any reductions may be appealed to the commissioner on the grounds that the amount is necessary for a thorough and efficient education or that the reductions will negatively impact on the stability of the district given the need for long term planning and budgeting.  In considering the appeal, the commissioner shall also consider the factors outlined in paragraph (1) of this subsection.

     In addition, the municipal governing body or board of school estimate shall be required to demonstrate clearly to the commissioner that the proposed budget reductions shall not adversely affect the ability of the school district to provide a thorough and efficient education or the stability of the district given the need for long term planning and budgeting.

     (3)   In lieu of any budget reduction appeal provided for pursuant to paragraphs (1) and (2) of this subsection, the State board may establish pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), an expedited budget review process based on a district's application to the commissioner for an order to restore a budget reduction.

     (4)   When the voters, municipal governing body or bodies, or the board of school estimate authorize the general fund tax levy, the district shall submit the resulting budget to the commissioner within 15 days of the action of the voters or municipal governing body or bodies, whichever is later, or of the board of school estimate as the case may be.

     f.     (Deleted by amendment, P.L.2007, c.260).

     g.     (Deleted by amendment, P.L.2007, c.260).

(cf: P.L.2007, c.260, s.28)

 

     2.  (New section)  Each executive county superintendent of schools shall provide to the Governor, and to the Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), a report by July 1 of each year which provides information on the executive county superintendent’s efforts and the results of those efforts to implement the authorities granted pursuant to N.J.S.18A:7-8 including, but not limited to:

     a.  the promotion of administrative and operational efficiencies and cost savings within school districts in the county;

     b.  the consolidation of school district administrative services;

     c.  the elimination of districts that are not operating schools;

     d.  the consolidation of districts through the establishment or enlargement of regional school districts;

     e.  the coordination and regionalization of pupil transportation services;

     f. the review and approval of employment contracts for superintendents, assistant superintendents, and school business administrators, including information on the number of such contracts that were disapproved;

     g.  the disapproval of school district budgets due to the failure of the district to implement all potential efficiencies in the administrative operations of the district or the inclusion of excessive non-instructional expenses;

     h.  the disapproval of the submission of separate proposals to the voters due to the failure of a school district to document its efforts to enter into shared services arrangements;

     i.  the promotion of cooperative purchasing of textbooks and other instructional materials;

     j.  the promotion of in-district and shared services and programs  for special education students, including progress on increasing the number of such students educated in appropriate programs with non-disabled students; and

     k.  information on any other duties and responsibilities assigned to the executive county superintendent of schools pursuant to law.

 

     3.  (New section)  An executive county superintendent of schools shall be appointed in any county in which the position is vacant on the effective date of P.L.   , c. (C.      ) (pending before the Legislature as this bill) within 30 days of that effective date. Any subsequent vacancy in the position of executive county superintendent of schools shall be filled within 120 days of the vacancy.

 

     4.  This act shall take effect immediately.

 

STATEMENT

 

     This bill provides for a 10% reduction in the per pupil administrative costs of certain school districts below those of the 2008-2009 school year.  The reduction will be phased in over a three-year period.

     Under current law, a school district’s per pupil administrative costs may equal the lower of the district’s prior year per pupil administrative costs or the prior year per pupil administrative cost limits for the district’s region inflated by the cost of living or 2.5 percent, whichever is greater.  The bill provides that in the case of a school district with a 2008-2009 school year per pupil administrative cost limit calculated in accordance with the regional limits, the district must make an annual reduction in its per pupil administrative costs in such amount as to ensure that by the 2011-2012 school year the district’s per pupil administrative costs will be no more than 90% of the 2008-2009 per pupil administrative cost limits for the district’s region.

     For the 2012-2013 school year and each school year thereafter, a school district’s per pupil administrative costs may not exceed its prior year per pupil administrative costs.  The bill does, however, maintain the authority of the commissioner to permit a school district to exceed its prior year per pupil administrative costs due to certain specified circumstances, such as an increase in nondiscretionary fixed costs.

     The bill also directs each executive county superintendent of schools to file an annual report on the results of efforts to implement the new authorities delegated to him under the CORE legislation which became effective in April of 2007.  The report would focus on issues associated with the promotion of administrative and operational efficiencies, the consolidation of school districts through the establishment or enlargement of regional districts, the coordination and regionalization of pupil transportation services, the promotion of in-district and shared services and programs for special education students, and other efforts to improve the operations and efficiencies of school districts within the county.

     Finally, the bill provides that an executive county superintendent of schools must be appointed in any county in which the position is currently vacant.  The appointment must be made within 30 days of the bill’s effective date.  The bill also stipulates that subsequent vacancies in the position of executive county superintendent must be filled within 120 days of the vacancy.

  

ASSEMBLY, No. 1113

Sponsored by:

Assemblyman JOSEPH CRYAN

District 20 (Union)

Assemblyman JOHN J. BURZICHELLI

District 3 (Salem, Cumberland and Gloucester)

Assemblywoman JOAN M. VOSS

District 38 (Bergen)

Co-Sponsored by:

Assemblywoman Lampitt

 

SYNOPSIS of A1113

Eliminates one-year notice that a school district is required to give superintendent of schools if the district determines not to reappoint.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel

  

 

An Act concerning superintendents of schools and amending P.L.1991, c.267.

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

   1.    Section 4 of P.L.1991, c.267 (C.18A:17-20.1) is amended to read as follows:

     4.  At the conclusion of the term of the initial contract or of any subsequent contract as hereinafter provided, the superintendent shall be deemed reappointed for another contracted term of the same duration as the previous contract unless either: a. the board by contract reappoints him for a different term which term shall be not less than three nor more than five years, in which event reappointments thereafter shall be deemed for the new term unless a different term is again specified; or b.  [at least one year] prior to the expiration of the first or any subsequent contract the board [shall notify] notifies the superintendent in writing that he will not be reappointed at the end of the current term, in which event his employment shall cease at the expiration of that term.

(cf:  P.L.1991, c.267, s.4)

 

     2.    This act shall take effect immediately.

 

STATEMENT

This bill eliminates the current requirement that a board of education provide at least one year notice to the superintendent of schools that he will not be reappointed at the end of the current contract term.  Under current law, if this one-year notice is not given, the superintendent is deemed reappointed for another contract term of the same duration as the previous contract.  This bill would continue to require written notification to the superintendent prior to the expiration of the contract in the event that the board determines not to reappoint him.

___________________________________________________________________________

A15 Provides for the election of school board members at November general election and eliminates vote on school budgets except for separate proposals to spend above cap which will also occur at general election.  (AS OF THIS WRITING, 5-7-08, A15 IS NOT YET PUBLISHED ON THE NJ LEGISLATURE WEBSITE.)

 

Roberts, Joseph J., Jr. as Primary Sponsor,

Wolfe, David W.  as Primary Sponsor,

Green, Jerry   as Primary Sponsor,

DeAngelo, Wayne P.   as Primary Sponsor

BIPARTISAN BILL TO MOVE SCHOOL ELECTIONS

TO NOVEMBER INTRODUCED IN ASSEMBLY

Speaker Aims for June Vote on Measure

     (TRENTON) -- Assembly Speaker Joseph J. Roberts, Jr. today formally introduced legislation first proposed last month to eliminate the state's April school elections and to move school board member elections to the November ballot.

     The bipartisan measure also is sponsored by Assemblymen David Wolfe (R-Ocean / Monmouth), Jerry Green (D-Union), and Wayne DeAngelo (D-Mercer / Middlesex).

     "New Jersey can no longer tolerate a system that embraces woeful turnout and garners a collective yawn from the public," said Roberts (D-Camden). "School board members should stand for election in November, in real election contests with real results."

     Speaker Roberts ordered the bill be numbered A15 in recognition that, on average, only 15 percent of voters show up at the polls for the April school elections.

     "Holding school elections in November provides for greater accountability while reducing unnecessary costs," said Wolfe. "This is a commonsense solution that will do away with the added expense of holding multiple elections, and at the same time, by holding the election at a time of greater voter turnout, will ensure that a larger segment of the public has a voice in the outcome of these contests."

      Under the measure, school board candidates would be placed on the November General Election ballot. Votes on school budgets would be eliminated, except in cases where a proposed budget exceeds statutory spending or tax levy limits.

     "Democrats and Republicans agree that April's school elections have failed to spark significant public participation," said Green. "Higher voter turnouts from a November school election will give a community a real say in how local schools are operated."

     "April's school elections have become a charade," said DeAngelo, a resident of Hamilton Township where the district budget was voted-down, but the election was overturned by state education officials. "Ultimate fiscal responsibility and accountability should rest with a school board elected in November by a majority of voters."

     The bill will be referred to the Assembly Education Committee.