LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 4678
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: DECEMBER 26, 2025
SUMMARY
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Synopsis: |
Includes retired teachers and county college faculty members in science, technology, engineering, and mathematics teacher grant program. |
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Type of Impact: |
Annual State expenditure increase. |
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Agencies Affected: |
Department of Education. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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State Cost Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) finds that this bill would result in an indeterminate annual State expenditure increase. The magnitude of the increase would be dependent on the extent to which participation in the program increases as a result of the bill.
· The OLS estimates that the reimbursement rate for a retired public school teacher or county college faculty member to participate in the program under the bill would be approximately $82 per hour of STEM classes taught at a nonpublic school.
· The OLS notes that, since FY 2020, this program has received appropriations totaling $7.5 million across all years. Of that amount, a total of approximately $3.4 million has been expended. To date in FY 2026, nearly $975,000 has been expended from the Nonpublic STEM Reimbursement Program account while the remaining balance of $4.1 million in the program account has been committed.
BILL DESCRIPTION
This bill modifies the science, technology, engineering, and mathematics (STEM) teacher grant program to permit retired teachers and county college faculty members to teach in nonpublic schools under the program. The bill also authorizes the inclusion of individuals, who may teach some other STEM subject or area, to be eligible teachers under the program.
The bill provides that a retired teacher or a county college faculty member participating in the program would receive an amount equal to the Statewide average teacher salary for the previous school year, calculated on an hourly basis, multiplied by 1.25 and by the number of hours the teacher would teach STEM classes at a nonpublic school.
The bill specifies that in the case of a retired teacher who was a former member of the Teachers’ Pension and Annuity Fund and becomes employed for the purposes of the program, the cancellation, reenrollment, and additional retirement allowance provisions under State law would not apply except if the retired teacher becomes employed within 180 days with the employer from which the teacher retired. The bill stipulates that payments made to participating eligible teachers under the program would not change any status or benefits under any retirement system or program to which the eligible teacher has membership.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that this bill would result in an indeterminate annual State expenditure increase. The magnitude of the increase would be dependent on the extent to which participation in the program increases as a result of the bill.
The bill provides that a participating retired public school teacher or a participating county college faculty member would receive an amount equal to the Statewide average salary in the prior year calculated on an hourly basis, multiplied by 1.25, for each hour of STEM classes taught at a nonpublic school. The OLS notes that in the 2024-2025 school year, the average salary for a classroom teacher was $82,843. Program documentation indicates that, in calculating the hourly rate, the Department of Education assumes a work schedule of 180 days in a school year and seven hours per day. Consequently, the reimbursement rate would be approximately $82 per hour of STEM classes taught at a nonpublic school.
Expenditures from the Nonpublic STEM Reimbursement Program account may increase to the extent that the bill’s expanded eligibility requirements cause increased participation from eligible public school teachers, retired teachers, and county college faculty members. The OLS notes that, since FY 2020, this program has received appropriations totaling $7.5 million across all years. Of that amount, a total of approximately $3.4 million has been expended, with the most significant spending occurring in FY 2025 when $1.3 million was spent. To date in FY 2026, nearly $975,000 has been expended from the account while the remaining balance of $4.1 million in the program account has been committed.
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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.).