LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

SENATE, No. 1637

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: FEBRUARY 4, 2025

 

 

SUMMARY

 

Synopsis:

Requires Secretary of Agriculture to establish Farm to School Local Food Procurement Reimbursement Grant Program to reimburse school districts for costs expended in sourcing and procuring local foods for students; appropriates $4,500,000.

Type of Impact:

Time-limited State expenditure increase; time-limited school district revenue and expenditure increases.

Agencies Affected:

Department of Agriculture; school districts.

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1

Year 2 & Thereafter

 

State Expenditure Increase

Up to $4.5 million

Indeterminate

 

School District Revenue Increase

Up to $4 million

Indeterminate

 

School District Expenditure Increase

Indeterminate

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) determines that this bill would result in a State expenditure increase of up to $4.5 million the first year the bill is in effect and by an indeterminate amount thereafter.  Of this amount, $4 million would be dedicated for funding grant awards and $500,000 would be for the administrative expenses of the Department of Agriculture to establish and operate the program.  If the full $4.5 million is not expended in the first year, the residual amount will be spent in subsequent fiscal years until the full $4.5 million is exhausted. 

 

·         School districts that elect to participate in the program will incur additional operating expenses as well as revenue from State reimbursements of up to $4 million across all participating school districts.

 

 

BILL DESCRIPTION

 

     This bill would require the Department of Agriculture to establish and operate the Farm to School Local Food Procurement Reimbursement Grant Program.  The grant program would provide reimbursement to eligible school districts in the State that implement or undertake expanded or modified local food procurement policies and activities. 

     The department would be authorized to annually award a program grant to each eligible school district that submits the required documentation in amounts between $10,000 and $250,000 based upon the size of the district.  Grants would be awarded to school districts on an equitable, pro rata basis, in accordance with a formula determined by the department.  All funds would be used for the sourcing and procurement of increased types or amounts of local foods, with districts permitted on a case-by-case basis to use up to 20 percent of the funds for technical assistance expenditures necessary to implement the district’s proposed local food procurement plan.  The department would annually submit a program status report to the Governor and Legislature upon submission of its annual program budget request.

     The bill would appropriate $4.5 million from the General Fund to the Department of Agriculture for the grant program.  Of that amount, $4 million would be deposited into the newly established Farm to School Local Food Procurement Reimbursement Fund for the financing of program grant awards.  The remaining $500,000 would support the department’s program-related administrative expenses.      

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that this bill would result in a State expenditure increase of up to $4.5 million the first year the bill is in effect and by an indeterminate amount thereafter.  Of this amount, $4 million would reimburse schools participating in the program and $500,000 would support the administrative expenses of the Department of Agriculture to establish and operate the program, and to submit an annual program report.  If the full $4.5 million is not expended in the first year, the residual amount will be spent in subsequent fiscal years until the full $4.5 million is exhausted. 

      School districts that elect to participate in the program will incur additional operating expenses as well as revenue from State reimbursements of up to $4 million across all participating school districts.  However, some school district implementation costs may be reimbursed from the grant award because the bill permits the department, at its discretion, to authorize a school district to use up to 20 percent of the funds annually awarded to reimburse technical assistance expenditures that are deemed necessary to implement the district’s proposed local food procurement plan.  A school district receiving a reimbursement grant in a particular year is permitted to apply for a grant in the following year or any subsequent years.  However, school districts are prohibited from rolling grant funding from one year to the next.  Subject to limited exceptions, any grant funds awarded to a school district that are unclaimed by the end of the annual disbursement period are to be reclaimed by the department and used for future grant program awards.

 

Section:

Environment, Agriculture, Energy, and Natural Resources

Analyst:

Anna Heckler

Assistant 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.).