LEGISLATIVE FISCAL ESTIMATE

[Fourth Reprint]

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 4220

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JANUARY 6, 2026

 

 

SUMMARY

 

Synopsis:

Modifies collective Statewide transfer agreement and reverse transfer agreement; establishes New Jersey Transfer Ombudsperson within Office of Secretary of Higher Education.

Type of Impact:

Annual State expenditure increase.

Agencies Affected:

Office of the Secretary of Higher Education. Participating institutions of higher education.

 

 

Office of Legislative Services Estimate

 

Fiscal Impact

Annual 

State Expenditure Increase

$300,000

 

·         The Office of Legislative Services (OLS) estimates that this bill would result in an annual State expenditure increase of approximately $300,000 for the Office of the Secretary of Higher Education.  The increase in costs is associated with the employment of a New Jersey Transfer Ombudsperson.

·         The OLS notes that participating institutions of higher education may incur indeterminate, likely marginal, cost increases associated with the collection of data, to the extent that the required data is not already collected and existing staff and resources are not sufficient to collect the required data.

 

BILL DESCRIPTION

 

      The bill modifies the Statewide transfer agreements for the transfer of academic credit and reverse credit at participating institutions of higher education.  The bill also establishes the position of New Jersey Transfer Ombudsperson within the Office of the Secretary of Higher Education.

      Under current law, each public institution of higher education is required to establish and enter into a collective Statewide transfer agreement that provides for the seamless transfer of academic credits across public institutions of higher education.  Similarly, current law requires institutions of higher education, both public and independent, to establish and enter into a collective Statewide reverse transfer agreement for the awarding of associate degrees by the county colleges.  The bill modifies both the collective Statewide transfer agreement and the collective Statewide reverse transfer agreement and requires each public institution of higher education to enter into the modified agreements.

      The bill additionally establishes the position of the New Jersey Transfer Ombudsperson within the Office of the Secretary of Higher Education.  The purpose of the ombudsperson is to serve as a resource for students and participating institutions of higher education regarding compliance with the credit transfer agreement. The ombudsperson may, upon request, serve as an impartial third-party mediator of disputes between one or more students and a participating institution or between two or more participating institutions. Under the bill, the ombudsperson is also responsible for the preparation of the annual credit transfer report.

      The bill also requires each participating institution of higher education to provide transfer students with data on program outcomes of students who have transferred from other participating institutions of higher education in the State, including degree completion rates.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that this bill would result in an annual State expenditure increase of approximately $300,000 for the Office of the Secretary of Higher Education.  The OLS bases its estimate on publicly available salary and benefits information.  The State Government 2023 Workforce Profile published by the New Jersey Civil Service Commission indicates that the average salary for a full-time government employee is $84,009.  When accounting for the cost of estimated benefits, the average annual compensation would be $142,395.  However, the OLS anticipates that an ombudsperson would likely be paid a salary higher than the average salary for a government employee.  Based on recent payroll information, the current salary for existing ombudspersons is $172,500; applying the estimated benefits results in an annual State cost of $292,387.  Consequently the OLS estimates that the cost of employing a New Jersey Transfer Ombudsperson is likely to be approximately $300,000 annually.

      The OLS notes that there may be additional costs incurred by participating institutions of higher education associated with the collection of data, to the extent that the required data is not already collected and existing staff and resources are not sufficient to collect the required data.  The OLS anticipates that any increased costs resulting from increased data collection would be marginal.

 

 

Section:

Education

Analyst:

Jessica S. Rueb

Associate Research 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.).