New Jersey 2024-2025 Regular Session

New Jersey Senate Bill S1539

Introduced
1/9/24  

Caption

Requires nonpublic secondary schools and independent institutions of higher education to make payment to school districts for educational costs of students residing in tax-exempt housing upon adoption of resolution by municipal governing body.

Impact

The bill aims to address revenue shortfalls faced by public school districts due to students living in tax-exempt institutions, which are often not contributing to local tax revenues. By establishing a payment mechanism, the legislation intends to provide a fairer allocation of resources to public schools, ensuring that they can adequately educate students regardless of where they reside. This funding mechanism may also influence how local governments approach the designation of tax-exempt properties, as these payments could mitigate the financial burden on local education systems.

Summary

Bill S1539 requires nonpublic secondary schools and independent institutions of higher education to make annual payments to school districts for educational costs incurred by students living in tax-exempt housing owned by these institutions. The payment amount is determined based on the per pupil general fund local levy of the school district. This requirement comes into effect after a resolution is adopted by the municipal governing body of the school district. The board of education is tasked with notifying the relevant schools of the number of students residing in tax-exempt facilities and the total payment owed each year by November 1.

Contention

One potential point of contention surrounding S1539 could be the financial implications for nonpublic schools and independent institutions. Critics may voice concerns about the added financial burdens this bill would impose on these entities, as they may already operate under tight budgets. Proponents argue that the legislation promotes equity in funding between public and nonpublic educational institutions, addressing disparities that exist when students from tax-exempt properties enroll in public schools. Discussions on how this bill will be implemented and its impact on local educational budgets could continue to develop as stakeholders weigh its benefits and drawbacks.

Companion Bills

NJ S1655

Carry Over Requires nonpublic secondary schools and independent institutions of higher education to make payment to school districts for educational costs of students residing in tax-exempt housing upon adoption of resolution by municipal governing body.

Previously Filed As

NJ S3357

Requires nonpublic secondary schools and independent institutions of higher education to make payment to school districts for educational costs of students residing in tax-exempt housing upon adoption of resolution by municipal governing body.

NJ A5131

Requires nonpublic secondary schools, independent institutions of higher education, and State to make payment to school districts for educational costs of students residing in tax-exempt housing upon adoption of resolution by municipal governing body.

NJ S1200

Requires water supplier to notify affected municipalities, school districts, charter schools, nonpublic schools, and institutions of higher education of violations of drinking water quality standards.

NJ A2016

Requires water supplier to notify affected municipalities, school districts, charter schools, nonpublic schools, and institutions of higher education of violations of drinking water quality standards.

NJ A1330

Requires certain institutions of higher education to make annual payment to municipality.

NJ A4953

Requires municipalities to share certain payments received in lieu of property taxes with school districts; informs counties and school districts of application for property tax exemption.

NJ S1807

Requires municipalities to share certain payments in lieu of property taxes with school districts; informs counties, school districts, and DCA of certain information related to property tax exemptions and abatements.

NJ S2854

Requires development of educational fact sheet on water safety for public and nonpublic schools; requires DOE to maintain list of locations providing swim lessons.

NJ S2452

"Safer Students Act"; requires school districts, charter schools, nonpublic schools, contracted service providers, and institutions of higher education to review employment history of prospective employee for allegations of child abuse or sexual misconduct.

NJ A5228

Requires municipal tax collectors who obtain payments in lieu of taxes under "Long Term Tax Exemption Law" to share portion of that revenue with school district or districts.

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