SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 5026

STATE OF NEW JERSEY

DATED:  JANUARY 8, 2026

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 5026.

      As reported, this bill provides funds to Union City School District to support certain expenditures.  The bill allocates to the Department of Education a portion of certain appropriations previously made from the “New Jersey Debt Defeasance and Prevention Fund” to the New Jersey Schools Development Authority for the parking facilities or structures of the Colin Powell Elementary School in Union City School District.

      In 2022, the Legislature appropriated from the “New Jersey Debt Defeasance and Prevention Fund” the sum of $1.9 billion to the New Jersey Schools Development Authority for the purpose of funding school facilities projects, emergent needs, and capital maintenance in school districts.  Of that amount, $1.55 billion was appropriated for the facilities needs of SDA districts, which have been identified by the State as having special educational needs that require supplemental programs and facilities improvements.

      Under this bill, an amount not to exceed $10 million of the $1.55 billion allocated in 2022 for the facilities needs of SDA districts would be allocated to the Department of Education for the engineering, design, and construction of parking facilities or structures used by the faculty, administration, and students of the Colin Powell Elementary School in Union City School District.  The bill directs the department to enter into a grant agreement with the Union City School District setting forth the terms, conditions, and disbursement schedule of the funds allocated pursuant to the bill.  The bill also directs the State Treasurer to modify as necessary prior grant agreements with the New Jersey Schools Development Authority setting forth the terms, conditions, and disbursement of the funds.

      This bill also appropriates $3.25 million from the General Fund to the Department of Education for High Cost Special Education Services in Union City School District.

FISCAL IMPACT:

      This bill has not been certified as requiring a fiscal note.