LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 4212

STATE OF NEW JERSEY

220th LEGISLATURE

 

DATED: DECEMBER 26, 2023

 

 

SUMMARY

 

Synopsis:

Establishes Center for Career Relevant Education and Talent Evaluation of New Jersey at Thomas Edison State University.

Type of Impact:

Potential State expenditure increase from the General Fund. Expenditure and revenue increases to Thomas Edison State University.

Agencies Affected:

Thomas Edison State University.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Annual

 

State Expenditure Increase

Indeterminate

 

Thomas Edison State University Revenue Increase

Indeterminate

 

Thomas Edison State University Expenditure Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) finds that this bill may lead to an increase in State costs in each year of implementation.  The magnitude of any State cost increase would be dependent on the level of service utilization at the Center for Career Relevant Education and Talent Evaluation of New Jersey (CreateNJ) at Thomas Edison State University, as well as resource allocation decisions made by the State.

·         To the extent that the State annually appropriates funds to Thomas Edison State University to establish CreateNJ, the university would experience a revenue increase. The university may realize additional fee revenue in indeterminate amounts for the utilization of services provided by the center.

·         The OLS finds that Thomas Edison State University would likely incur costs of its own to operate the center.

BILL DESCRIPTION

 

      The bill establishes the Center for Career Relevant Education and Talent Evaluation of New Jersey (CreateNJ) at Thomas Edison State University. The purpose of CreateNJ would be to maximize collaborations between employers, partner organizations, and institutions of higher education that develop and implement career pathways for nontraditional students and workers and workforce development programs. The center would be the State’s central resource for the evaluation and translation of learning experiences into a validated record of academic credit, career credentials, pre-apprenticeship and apprenticeship credits, and pertinent knowledge, skills, and abilities. The validated record developed by the center pursuant to this bill’s provisions would be known as the CreateNJ Workforce Transcript.

      CreateNJ would also establish a database that houses all of the skills or credits credentialed or accepted by Thomas Edison State University and other voluntarily participating institutions of higher education. The bill permits CreateNJ to assess fees for the utilization of the database and transcript generation, and stipulates that any fee or other revenue collected by the center is to be used to fund the operations of the center.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that this bill may lead to an increase in State costs in each year of implementation. The magnitude of any annual State cost increase would be dependent on the level of service utilization at the center, as well as resource allocation decisions made by the State.

      To the extent that the State annually appropriates funds to Thomas Edison State University to establish CreateNJ, the university would experience a revenue increase.  The OLS notes that the FY 2024 Appropriations Act currently provides a total of $14.3 million in institutional support to Thomas Edison State University. The university may realize additional fee revenue in indeterminate amounts for the utilization of the database and transcript generation. The amount of fee revenue is dependent on the amount and quantity of fees assessed. The university may experience other revenue increases to the extent that it applies for, and is awarded, grant funds made available by the federal government, private foundations or entities, or any other sources.

      The OLS finds that Thomas Edison State University would likely incur indeterminate costs of its own to operate CreateNJ. Operating costs under the bill would include hiring staff for the center, entering into contracts as permitted by law to perform certain functions on behalf of the center, and establishing and maintaining a database of individuals’ skills or credits in accordance with the bill’s provisions.

 

Section:

Education

Analyst:

Abigail Chambers

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).