SENATE EDUCATION COMMITTEE

STATEMENT TO

[Second Reprint]

ASSEMBLY, No. 4854

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 5, 2025

      The Senate Education Committee reports favorably and with committee amendments Assembly Bill No. 4854 (2R).

      As amended, this bill modifies the laws governing the allocation of State aid for auxiliary services and remedial services to nonpublic school students. 

      The amended bill specifically requires the Commissioner of Education to establish a process by which school districts are to be reimbursed for costs that are incurred to provide auxiliary and remedial services for eligible nonpublic school students.  Pursuant to the amended bill, school districts are to be reimbursed for costs within the limits of applicable maximum per service aid amounts, as established by the commissioner.  The maximum per service aid amounts are to be determined by dividing the amount annually appropriated to provide auxiliary and remedial services in the annual appropriations act by the average number of documented services delivered in the prior three school years.  In the second full school year following the date of enactment of the amended bill and every third school year thereafter, the commissioner is required to conduct a survey, which is to collect from service providers information as the commissioner deems necessary to calculate the average and range of costs incurred to provide services.  The commissioner is required to report the findings of the survey to the Governor and the Legislature and is to use the report to inform recommendations on the annual appropriations to provide auxiliary and remedial services.

      In distributing State aid for auxiliary and remedial services, the commissioner is required to ensure that, to the greatest extent possible, the amounts annually appropriated for auxiliary services and remedial services are fully exhausted by the end of the school year for which the maximum amounts are established and that the amounts appropriated are equitably distributed among school districts applying for reimbursement.  To the extent permitted by federal law, the commissioner may establish limits on the duration and frequency of certain auxiliary and remedial services in order to ensure that the greatest number of eligible students are provided services throughout the school year and that, to the greatest extent possible, the amount annually appropriated for the services is available to reimburse school districts during the entirety of the school year. 

      The reimbursement process to be implemented by the commissioner pursuant to the bill is to permit school districts to apply quarterly for reimbursement payments.  The details of the reimbursement process are to be annually announced on July 15 of the school year, and districts can begin submitting for reimbursement on September 1.  Reimbursements are to be made to school districts throughout the school year until the full amount annually appropriated as State aid for nonpublic school auxiliary and remedial services has been fully expended.

      School districts seeking reimbursement under the amended bill are to submit applications on a quarterly basis and adhere to all established submission guidelines, accounting and budgeting guidance, documentation requirements, and defined timelines for reimbursement. 

      In order to ensure the full reimbursement of eligible costs, the amended bill also removes provisions of law setting forth the calculation of both categories of aid.  Under current law, State aid allotments for an upcoming school year are calculated by multiplying the applicable per pupil service cost by the number of students who were previously identified as eligible to receive each service. 

      The amended bill also removes sections of current law that: 1) require school districts to refund unexpended State aid for nonpublic auxiliary and remedial services; and 2) require the commissioner to prorate State nonpublic auxiliary and remedial services aid amounts downward, in the event that the amount of State aid appropriated for those purposes is insufficient.

      The amended bill clarifies that its provisions are to take effect immediately and first apply in the 2025-2026 school year.

As amended and reported by the committee, this bill is identical to Senate Bill No. 4312, which the committee amended and reported on this same date.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

· specify that the bill is to first apply in the 2025-2026 school year; and

· make technical changes, including to correct certain internal citations in the bill.