LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 4308
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JUNE 28, 2024
SUMMARY
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Synopsis: |
Requires school districts to implement reading intervention program for students in certain grades as part of implementation of New Jersey Student Learning Standards in English Language Arts. |
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Type of Impact: |
Annual local school district expenditure increase. |
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Agencies Affected: |
Local school districts. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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School District Expenditure Increase |
Estimated per school district cost between $6,500 and $20 million |
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· The Office of Legislative Services (OLS) finds that this bill may result in an increase in local school district expenditures, ranging from approximately $6,500 to $20 million per school district. The range reflects different school district enrollment sizes, each district’s percentage of students who may be deemed to exhibit a reading deficiency pursuant to the bill, and an assumed per student cost of $2,500 to implement the reading intervention program required by the bill.
· The OLS notes that actual costs incurred by school districts may differ significantly from the estimated costs. In particular, it may be the case that certain school districts already operate reading intervention programs that adhere to the provisions of the bill. In addition, actual per student costs are likely to differ from the $2,500 assumed per student cost. Finally, the number of students requiring reading intervention programs may differ when determined by a screening assessment compared to the New Jersey Student Learning Assessment.
BILL DESCRIPTION
This bill requires that a school district offer a reading intervention program to students in grades kindergarten through three that exhibit reading deficiencies as determined by Commissioner of Education-approved screening assessments. The reading intervention program is to: (1) utilize a data-driven multi-tiered system of supports; (2) provide explicit and systemic instruction in phonological awareness, phonics, fluency, vocabulary, and comprehension, as applicable; (3) monitor the progress of a student’s reading skills throughout the school year; and (4) be adjusted throughout the year, if necessary, according to student needs.
The bill also requires the department to provide school districts with age-appropriate materials designed to implement the program. Under the bill, school districts are required to adopt high-quality instructional materials grounded in scientifically-based reading research to implement the program. The department is to provide school districts with age-appropriate materials designed to implement the provisions of this subsection.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that this bill will result in an increase in local school district expenditures, ranging from approximately $6,500 to $20 million per school district. The range reflects different school district enrollment sizes, percentages of students who may be deemed to exhibit a reading deficiency pursuant to the bill, and an assumed per student cost of $2,500.
In conducting its analysis, the OLS first utilized information from the Department of Education concerning third grade student performance levels on the New Jersey Student Learning Assessments in English Language Arts that were administered in the Spring of 2023. The data from the department shows the percentage of students in each district that score in one of five performance levels as follows:
· Level 1: Did Not Yet Meet Expectations;
· Level 2: Partially Met Expectations;
· Level 3: Approached Expectations;
· Level 4: Met Expectations; and
· Level 5: Exceeded Expectations.
While the bill’s definition of “reading deficiency” does not tie specifically to a student’s performance level on the New Jersey Student Learning Assessments, the OLS, for purposes of this analysis, assumes that the bill’s definition means as either: 1) the number of students scoring in Levels 1, 2, and 3; or 2) the number of students scoring in Levels 1 and 2. The OLS applies the proportions of third grade students scoring at these levels in each school district to the district’s overall enrollment in grades kindergarten through three. Doing so approximates the number of students who may participate in the reading intervention program required by the bill.
After estimating the number of students who may exhibit a reading deficiency, the OLS then assumes that the per student cost of implementing a reading intervention program is $2,500. While publicly available research indicates a wide range of per students costs based on a variety of factors, the OLS bases its estimate on a recent cost analysis of Michigan School districts implementing a similar law known as the “Read by Three” law. That cost analysis indicated that Michigan school districts spent an average of approximately $2,600 per student to implement the requirements of the law.
These assumptions yielded estimated cost increases to school districts between $6,500 and $20 million to implement the provisions of the bill. However, the OLS notes that actual costs incurred by school districts may differ significantly from the estimated costs. In particular, it may be the case that certain school districts already operate reading intervention programs that adhere to the provisions of the bill. In addition, actual per student costs are likely to differ from the $2,500 assumed per student cost. Finally, the number of students requiring reading intervention programs may differ when determined by a screening assessment compared to the New Jersey Student Learning Assessment.
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Section: |
Education |
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Analyst: |
Senior Fiscal Analyst |
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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.).