LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

SENATE, No. 4440

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: DECEMBER 24, 2025

 

 

SUMMARY

 

Synopsis:

Requires key boxes at public school buildings with certain exceptions; permits reimbursement of costs related to key box installation.

Type of Impact:

State expenditure increase; one-time school district revenue and expenditure increase.

Agencies Affected:

Department of Education; school districts.

 

 

Office of Legislative Services Estimate

One-Time Fiscal Impact

 

 

State Expenditure Increase

Indeterminate

 

School District Revenue Increase

Indeterminate

 

School District Expenditure Increase

Indeterminate

 

 

·         The Office of Legislative Services (OLS) concludes that the bill will lead to an indeterminate one-time increase in school district expenditures to provide for the installation at each school building of at least one exterior key box that meets or exceeds Underwriters Laboratories Standard 1037, or another nationally recognized industry standard for antitheft alarms and devices.

 

·         The Department of Education will experience an indeterminate expenditure increase to reimburse school districts for the costs of installing the required key boxes at each public school, charter school, and renaissance school project in the State. All school districts are required to install the key boxes by June 30, 2027, or request a waiver from the department.

 

·         Based on available information about key box prices, the OLS estimates that costs to the State could amount to between $1.2 million and $3.7 million, with some variation possible depending on the quantity of key boxes purchased and the costs of the key boxes that each school district decides to purchase.  Costs may also be less than this range to the extent that school districts already meet the requirements of the bill or are granted an exemption pursuant to the bill.

BILL DESCRIPTION

 

      This bill requires the board of education of each school district and board of trustees of each charter school or renaissance school project to provide for the installation of at least one exterior key box meeting certain standards at each school building no later than June 30, 2027.

      Each key box would contain keys and other access control devices necessary to access each building and room located on the school grounds. The school district, charter school, or renaissance school project would be required to install the key boxes at appropriate locations for permitting emergency responders to access the building or demonstrate that the district has implemented an alternative plan and procedures that are equivalent to or exceed the requirements of the bill.

      The bill also permits the board of education of a school district and board of trustees of a charter school or renaissance school project to be exempt from the bill’s requirement to install a key box if the board has implemented certain alternative plans and procedures that meet standards prescribed by the bill.  A board would be granted an exemption after application and approval by the Department of Education. 

      Finally, the bill provides that costs incurred by the board of education of a school district and the board of trustees of a charter school or renaissance school project for the installation of a new key box or replacement of an existing key box necessary for compliance with the bill would be borne by the State. School districts, charter schools, and renaissance school projects would apply to the department for reimbursement.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS concludes that the bill will lead to an indeterminate one-time increase in school district expenditures to provide for the installation at each school building of at least one exterior key box that meets or exceeds Underwriters Laboratories Standard 1037, or another national recognized industry standard for antitheft alarms and devices. The Department of Education will experience an expenditure increase to reimburse school districts for the costs of installing the required key boxes at each public school, charter school, and renaissance school project in the State. School districts, charter schools, and renaissance school projects are expected to experience concomitant expenditure and revenue increases as they purchase and are subsequently reimbursed for the required key boxes.

      For the purposes of illustration, the OLS notes that one company that sells key boxes lists three separate models that meet Underwriters Laboratories Standard 1037. The models retail for between $499 and $1,487 per unit. According to the Department of Education’s Public School Fact Sheet for the 2024-2025 school year, there are 2,506 schools in the State, so the OLS expects that the purchase of one key box by every school would yield a Statewide school district expenditure increase between $1.2 million and $3.7 million. Expenditures could be more than $3.7 million to the extent that school districts need to purchase more than one key box for schools in the district or choose to purchase more expensive key boxes. However, Statewide expenditures could be less than $1.2 million to the extent that school districts already have key boxes that meet the requirements of the bill or are exempt from the requirement to install a kay box due to the implementation of an alternative plan. 

 

 

 

Section:

Education

Analyst:

Abigail Chambers

Senior 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.).