PDF DEPARTMENT OF EDUCATION .us

FISCAL YEAR 2019-2020

ANALYSIS OF THE NEW JERSEY BUDGET

DEPARTMENT OF EDUCATION

Prepared by the

New Jersey Legislature Office of LEGISLATIVE SERVICES

April 2019

NEW JERSEY STATE LEGISLATURE

SENATE BUDGET AND APPROPRIATIONS COMMITTEE

Paul A. Sarlo (D), 36th District (Parts of Bergen and Passaic), Chair Sandra B. Cunningham (D), 31st District (Part of Hudson), Vice-Chair Dawn Marie Addiego (D), 8th District (Parts of Atlantic, Burlington and Camden) Bob Andrzejczak (D), 1st District (All of Cape May, Parts of Atlantic and Cumberland) Nilsa Cruz-Perez (D), 5th District (Parts of Camden and Gloucester) Patrick J. Diegnan Jr. (D), 18th District (Part of Middlesex) Linda R. Greenstein (D), 14th District (Parts of Mercer and Middlesex) Declan J. O'Scanlon, Jr. (R), 13th District (Part of Monmouth) Steven V. Oroho (R), 24th District (All of Sussex, and parts of Morris and Warren) M. Teresa Ruiz (D), 29th District (Part of Essex) Troy Singleton (D), 7th District (Part of Burlington) Samuel D. Thompson (R), 12th District (Parts of Burlington, Middlesex, Monmouth and Ocean)

GENERAL ASSEMBLY BUDGET COMMITTEE

Eliana Pintor Marin (D), 29th District (Part of Essex), Chair John J. Burzichelli (D), 3rd District (All of Salem, parts of Cumberland and Gloucester), Vice-Chair Daniel R. Benson (D), 14th District (Parts of Mercer and Middlesex) Robert D. Clifton (R), 12th District (Parts of Burlington, Middlesex, Monmouth and Ocean) John DiMaio (R), 23rd District (Parts of Hunterdon, Somerset and Warren) Gordon M. Johnson (D), 37th District (Part of Bergen) Patricia Egan Jones (D), 5th District (Parts of Camden and Gloucester) John F. McKeon (D), 27th District (Parts of Essex and Morris) Raj Mukherji (D), 33rd District (Part of Hudson) Nancy F. Munoz (R), 21st District (Parts of Morris, Somerset and Union) Carol A. Murphy (D), 7th District (Part of Burlington) Edward H. Thomson (R), 30th District (Parts of Monmouth and Ocean) Benjie E. Wimberly (D), 35th District (Parts of Bergen and Passaic)

OFFICE OF LEGISLATIVE SERVICES

Frank W. Haines III, Legislative Budget and Finance Officer Thomas Koenig, Assistant Legislative Budget and Finance Officer

Marvin W. Jiggetts, Director, Central Staff Kathleen Fazzari, Section Chief, Education Section

This report was prepared by the Education Section of the Office of Legislative Services under the direction of the Legislative Budget and Finance Officer.

The primary author was William Owens.

Questions or comments may be directed to the OLS Education Section (Tel. 609 847-3850) or the Legislative Budget and Finance Office (Tel. 609 847-3105).

DEPARTMENT OF EDUCATION

Budget Pages.......

C-4, C-10, C-17, C-23, C-25, C-27, D-83 to D-109, H-1

Fiscal Summary ($000)

State Budgeted Federal Funds Other Grand Total

Expended FY 2018

$13,305,968

$907,300

$17,561

$14,230,829

Adjusted Appropriation

FY 2019 $14,279,624

$918,339

$13,916

$15,211,879

Recommended FY 2020

$14,702,565

$918,212

$16,436

$15,637,213

Percent Change 2019-20

3.0%

( .0%)

18.1%

2.8%

Personnel Summary - Positions By Funding Source

State

Actual FY 2018

378

Revised FY 2019

370

Funded FY 2020

398

Percent Change 2019-20

7.6%

Federal

184

141

149

5.7%

Other

130

122

123

.8%

Total Positions

692

633

670

5.8%

FY 2018 (as of December) and revised FY 2019 (as of January) personnel data reflect actual payroll counts. FY 2020 data reflect the number of positions funded.

Link to Website:

Department of Education

Highlights

FY 2019-2020

?

The recommended FY 2020 budget increases direct aid to schools by $206 million, or

2.4 percent, above the amount appropriated for this purpose in the current fiscal

year. FY 2020 is the first year of the allocation of State school aid pursuant to the

provisions of P.L.2018, c.67 (C.18A:7F-67 et al.). Under that law, a State aid differential

is calculated for each school district as the amount of aid that the district received in the

prior school year, not including educational adequacy aid and school choice aid, minus

the sum of equalization aid, special education categorical aid, security categorical aid,

and transportation aid as calculated under the "School Funding Reform Act of 2008"

(SFRA), P.L.2007, c.260 (C.18A:7F-43 et al.), prior to applying the State aid growth

limit. In the case of a school district in which the State aid differential is positive, the

differential will be reduced by a certain percentage in each school year from the 2019-

2020 through 2024-2025 school years. For the 2019-2020 school year, the reduction is

13 percent, and approximately 200 school districts will have a reduction in State aid.

School districts in which the State aid differential is negative will receive an increase in State aid. Each such school district will receive a proportionate share of the sum of the total State aid reduction from districts that have a positive State aid differential and any additional amount included in the appropriations act for the purpose of providing direct State aid to school districts. For school year 2019-2020, the total State aid reduction is $89 million, and the additional amount proposed by the Governor is $192.6 million.

?

The proposed budget includes additional State aid for the Lakewood Township School

District. State aid, in addition to that calculated under P.L.2018, c.67 (C.18A:7F-67 et

al.), is provided to the Lakewood School District under three language provisions

included in the recommended budget. Under the language provisions, Lakewood will

receive approximately $6.1 million in additional transportation aid, $8.9 million in

additional special education categorical aid, and $15 million in a new aid category,

Provisional Stabilization Aid.

?

The proposed budget continues the Lakewood Township School District Nonpublic

School Pupil Transportation Program. P.L.2016, c.22 (C.18A:39-1d) authorized the

commissioner to establish a three-year nonpublic school pupil transportation program

in the Lakewood School District. Under the program, a consortium of nonpublic

schools oversees the transportation of the nonpublic school pupils to those nonpublic

schools, and the school district provides the aid in-lieu-of-transportation amount,

currently $1,000, for each nonpublic school pupil eligible for transportation. The 2018-

2019 school year is the final year of the pilot program and the statute required the

submission of a report on the pilot program to the Governor and the Legislature on

whether the pilot program should be continued. While that report has not been issued,

the proposed budget would continue the pilot program for the 2019-2020 school year

and authorize the commissioner to determine the aid in-lieu-of transportation amount

to be provided for each eligible nonpublic school pupil.

2

Department of Education

Highlights (Cont'd)

FY 2019-2020

?

The recommended budget consolidates preschool education expansion aid under the

preschool education aid line item. The recommended appropriation for preschool

education aid, $806.5 million, is $68.4 million (9.3 percent) greater than the FY 2019

adjusted appropriation. This increase is largely attributable to the reallocation to this

category of aid of the $50 million in preschool education expansion aid awarded in the

2018-2019 school year. The proposed budget also provides that $25 million of the

preschool education aid appropriation will be allocated for further preschool

expansion.

?

The proposed appropriation for school choice aid, $56.5 million, is $3.7 million (6.2

percent) less than the amount appropriated in FY 2019. This reduction is due to the

fact that under a proposed language provision, choice districts will only receive 90

percent of their choice aid entitlement as calculated under the law.

?

The State's contribution to the Teachers' Pension and Annuity Fund increases by

$323.3 million (29.1 percent). This appropriation, in addition to $832.6 million in State

Lottery revenue, represents 70 percent of the actuarially determined contribution

necessary to fund the normal and accrued pension liability.

?

The State's contribution to post-retirement medical benefits decreases by $243.5

million (20.2 percent). This reduction in appropriations reflects the anticipated savings

from the enrollment of Medicare?eligible retired school district employees in Medicare

Advantage plans and efforts to have more retired school district employees utilize in-

network doctors and specialists.

3

Department of Education

Fiscal and Personnel Summary

AGENCY FUNDING BY SOURCE OF FUNDS ($000)

Expended FY 2018

Adj. Approp. FY 2019

General Fund

Direct State Services

$93,278

$83,602

Grants-In-Aid

3,185

6,060

State Aid

223,863

119,890

Capital Construction

0

0

Debt Service

0

0

Sub-Total

$320,326

$209,552

Property Tax Relief Fund

Direct State Services

$0

$0

Grants-In-Aid

0

0

State Aid

12,985,642

14,070,072

Sub-Total

$12,985,642

$14,070,072

Casino Revenue Fund

$0

$0

Casino Control Fund

$0

$0

State Total

$13,305,968

$14,279,624

Federal Funds

$907,300

$918,339

Other Funds

$17,561

$13,916

Grand Total

$14,230,829

$15,211,879

Recom. FY 2020

$83,252 6,060

119,890 0 0

$209,202

$0 0

14,493,363 $14,493,363

$0 $0 $14,702,565 $918,212 $16,436 $15,637,213

FY 2019-2020

Percent Change

2018-20

2019-20

( 10.7%) 90.3%

( 46.4%)

( 0.4%) 0.0% 0.0%

( 34.7%)

( 0.2%)

11.6% 11.6%

3.0% 3.0%

10.5% 1.2%

( 6.4%) 9.9%

3.0% ( 0.0%)

18.1% 2.8%

PERSONNEL SUMMARY - POSITIONS BY FUNDING SOURCE

Actual FY 2018

Revised FY 2019

Funded FY 2020

Percent Change

2018-20

2019-20

State

378

370

398

5.3%

7.6%

Federal

184

141

149

( 19.0%)

5.7%

All Other

130

122

123

( 5.4%)

0.8%

Total Positions

692

633

670

( 3.2%)

5.8%

FY 2018 (as of December) and revised FY 2019 (as of January) personnel data reflect actual payroll counts. FY 2020 data reflect the number of positions funded.

AFFIRMATIVE ACTION DATA

Total Minority Percent

32.2%

36.6%

N/A

----

----

4

Department of Education

Significant Changes/New Programs ($000)

Budget Item

Adj. Approp. FY 2019

Recomm. FY 2020

Dollar Change

FY 2019-2020

Percent Budget Change Page

Total State Appropriation

$14,279,624 $14,702,565

State Aid

$422,941

3.0% D-83

Total State Aid

$14,189,962 $14,613,253 $423,291

3.0% D-85

Total State aid includes direct aid payments to school districts and charter schools, as well as funding to school districts to pay for goods and services that districts provide to nonpublic schools located in the districts. It also includes payments made by the State on behalf of school districts, including payments to the Teachers' Pension and Annuity Fund (TPAF), reimbursements made to school districts for the employer's share of FICA taxes for most school district employees, retired school district employees' health benefits, and debt service payments on bonds issued to finance the State's school construction program and bonds that financed payments to the TPAF. The amount of direct State aid to school districts will increase by $206 million, from $8.49 billion to $8.69 billion, and the remaining increase is the result of increased debt service payments and greater contributions to the TPAF.

Equalization Aid

$6,340,026 $6,567,399 $227,373

3.6% D-91

Special Education Categorical Aid

$920,049 $951,056

$31,007

3.4% D-92

Security Aid

$286,881 $286,959

$ 78

.0% D-91

Transportation Aid

$320,678 $336,315

$15,637

4.9% D-92

Adjustment Aid

$487,299 $429,722 ($57,577)

( 11.8%) D-91

FY 2020 is the first year of the allocation of State school aid pursuant to the provisions of P.L.2018, c.67 (C.18A:7F-67 et al.), commonly referred to as S-2. That law provides a mechanism for allocating State school aid from the 2019-2020 through 2024-2025 school years.

Under the law, a State aid differential is calculated for each school district as the amount that the school district received in the prior school year, not including educational adequacy aid and school choice aid, minus the sum of equalization aid, special education categorical aid, security categorical aid, and transportation aid as calculated under the "School Funding Reform Act of 2008" (SFRA), P.L.2007, c.260, prior to applying the State aid growth limit. In the case of a school district in which the State aid differential is positive, the differential would be reduced by a certain percentage each school year. In the 2019-2020 school year, that reduction is 13 percent. Approximately 200 school districts will see a reduction in State aid in the 2019-2020 school year.

5

Department of Education

Significant Changes/New Programs ($000) (Cont'd)

Budget Item

Adj. Approp. FY 2019

Recomm. FY 2020

Dollar Change

FY 2019-2020

Percent Budget Change Page

School districts in which the State aid differential is negative would receive an increase in State aid. Specifically, each school district would receive a proportionate share of the sum of the total State aid reduction from districts that have a positive State aid differential and any increase in State aid included in the annual appropriations act for the purpose of providing direct State aid to school districts. In the FY 2020 recommended budget, $89 million is being redistributed from school districts that have a positive State aid differential and $192.6 million in additional State aid is also distributed.

Two groups of districts are exempt from these reductions: 1) SDA (former Abbott) districts that spend below adequacy and are located in a municipality in which the equalized total tax rate exceeds the Statewide average; and 2) non-SDA districts that spend below adequacy by at least 10 percent and are located in a municipality in which the equalized total tax rate exceeds the Statewide average by more than 10 percent.

In the case of two other groups of districts, the reductions are limited: 1) in the case of an SDA district that is spending above adequacy and is located in a municipality in which the equalized total tax rate is greater than the Statewide average, the reduction will not exceed the amount by which the district is spending above adequacy multiplied by the State aid reduction percentage for that school year (13 percent in the 2019-2020 school year); and 2) in the case of a county vocational school district, the district will receive vocational expansion stabilization aid to ensure that the district's State aid does not drop below what the district received in the 2017-2018 school year.

In addition to the State aid being distributed pursuant to the provisions of S-2, additional transportation aid ($6.1 million), additional special education categorical aid ($8.9 million), and Provisional Stabilization Aid ($15 million) are being distributed to the Lakewood School District pursuant to separate language provisions included in the recommended budget.

Vocational Expansion Stabilization Aid

$0

$2,228

$ 2,228

100.0% D-91

Pursuant to P.L.2018, c.67 (C.18A:7F-67 et al.), vocational expansion stabilization aid is provided to county vocational school districts to ensure that these districts receive no less than the amount of State school aid the district received in the 2017-2018 school year. The county vocational school districts that would receive this aid category in FY 2020 are Bergen, Cape May, Hunterdon, Monmouth, Ocean, Somerset, and Sussex County Vocational School Districts.

Provisional Stabilization Aid

$0

$15,000

$15,000

100.0% D-92

Language recommended in the proposed FY 2020 budget provides Provisional Stabilization Aid to school districts that qualify for additional special education aid and additional transportation aid under separate recommended language provisions. Only the Lakewood Township School District qualifies for Provisional Stabilization Aid.

6

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download