ASSEMBLY APPROPRIATIONS COMMITTEE

 

STATEMENT TO

 

ASSEMBLY, No. 4678

 

with committee amendments

 

STATE OF NEW JERSEY

 

DATED:  MARCH 19, 2026

 

      The Assembly Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 4678.

      As amended, this bill clarifies the provision of payments for non-resident students who enroll at a renaissance school project.

     Under current law, the school district in which a renaissance school project is located is required to pay to the nonprofit entity partnering with the renaissance school project a per pupil amount.  However, current law does not specify whether the amount is to be paid for all students enrolled in the renaissance school project or only students resident in the district.

     The bill clarifies that the school district in which a renaissance school project is located is required to pay the per pupil amount for each student who resides in the district.  For all students residing outside of the renaissance school district who are enrolled in the renaissance school project in accordance with the lottery enrollment provisions of the “Urban Hope Act,” the student’s school district of residence would be required to pay the per pupil amount to the nonprofit entity.

     The bill also provides that the Department of Education would include renaissance school projects in the Charter School Enrollment System for the purpose of calculating and reconciling payments between school districts and renaissance school projects.

     Finally, the bill directs the department to employ any existing rules and procedures for settling residency and payment disputes for charter schools in the settlement of such disputes for renaissance school projects.

 

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

·       clarify that payment by a non-resident student’s district of residence in accordance with the bill’s provision applies to non-resident students enrolled through the lottery provisions of the “Urban Hope Act”; and

·       make technical changes to the structure of the bill and certain internal references and citations.

 

 

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that this bill will lead to an indeterminate cost increase for certain non-renaissance school districts that are resident school districts for students attending a renaissance school project.  While current State regulations permit a renaissance school district accepting nonresident students to charge tuition for those students, information included in the most recent Renaissance School Project Annual Reports indicates that no tuition was collected for students who are not residents of a renaissance school district in the 2024-2025 school year.  No tuition revenue was expected to be collected from nonresident students in the 2025-2026 school year.  The reports also indicate that, in the 2024-2025 school year, a total of 25 nonresident students attended two renaissance school projects in Camden City.  A third renaissance school project in Camden City did not report nonresident enrollment. 

      Assuming that this bill would require non-renaissance school districts to make payments to renaissance school projects that were not previously being made for students attending those schools, the bill would lead to increased costs for the non-renaissance districts.  According to the bill, the payments would include 95 percent of the district’s per pupil expenditure, which is defined in current law as the sum of equalization aid per pupil, adjustment aid per pupil, and the general fund tax levy per pupil inflated by the consumer price index.  While the OLS does not have access to student-level information concerning the specific school districts in which nonresident students of each renaissance school project reside, it estimates that the average Statewide per pupil expenditure in the 2025-2026 school year is approximately $22,600.  In accordance with the provisions of the bill, 95 percent of this average amount is approximately $21,500.  If this average amount is paid for each of the 25 nonresident students projected to attend renaissance school projects in the 2025-2026 school year, then total local school district costs would be at least $540,000.  Actual expenditures could be more or less to the extent that the school districts in which the nonresident students reside have a per pupil expenditure amount greater or less than the Statewide average.

      The OLS also notes that these average costs will be driven slightly higher due to the bill’s requirement of the additional payment of the security categorical aid attributable to nonresident students, a percentage of the district's special education categorical aid, and 100 percent of preschool education aid attributable to nonresident students.