A4986

An Act concerning high school equivalency exam fees and supplementing chapter 50A of Title 18A of the New Jersey Statutes, chapter 3 of Title 54A of the New Jersey Statutes, and P.L.1945, c.162 (C.54:10A-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. This act shall be known and may be cited as the “We Believe In You Act.”

2. a. As used in this section:

“High school equivalency exam” means any adult education assessment approved by the State Board of Education as a basis for qualifying for a State-issued high school diploma.

“Low-income individual” means an individual who resides in a household in which the household income is less than or equal to 150 percent of the most recent federal poverty guidelines available.

b. The State Board of Education shall establish a program to pay the fee of a high school equivalency exam on behalf of a low-income individual. The State board shall specify the manner in which an individual may apply for the payment, including the documentation that shall be used to verify the individual’s income.

3. There is established in the Department of Education a dedicated, nonlapsing fund, designated as the “We Believe In You Fund.” The fund shall be credited with all moneys appropriated or otherwise made available for the purposes of the fund, including, but not limited to, donations for which a taxpayer is eligible for a deduction pursuant to section 4 or 5 of P.L. , c. (C. ) (pending before the Legislature as this bill). Disbursements from the fund shall be used for the purpose of paying the fee of a high school equivalency exam on behalf of a low-income individual pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

4. A taxpayer shall be allowed to deduct from gross income an amount equal to the total amount of donations made by the taxpayer in a taxable year beginning on or after the effective date of P.L. , c. (pending before the Legislature as this bill) to the We Believe In You Fund established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

5. A taxpayer shall be allowed to deduct from entire net income, or such portion thereof as may be allocable to this State as provided in section 6 of P.L.1945, c.162 (C.54:10A-6) plus such portion thereof as is specifically assigned to this State as provided in section 5 of P.L.1993, c.173 (C.54:10A-6.1), an amount equal to the total amount of donations made by the taxpayer during a privilege period beginning on or after the effective date of P.L. , c. (pending before the Legislature as this bill) to the We Believe In You Fund established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).

6. This act shall take effect immediately.

STATEMENT

This bill requires the State Board of Education to establish a program to pay the fee of a high school equivalency exam on behalf of a low-income individual. The State board would be required to specify the manner in which an individual may apply for the payment, including the documentation that would be used to verify the individual’s income. The bill defines “high school equivalency exam” as any adult education assessment approved by the State Board of Education as a basis for qualifying for a State-issued high school diploma. “Low-income individual” means an individual who resides in a household in which the household income is less than or equal to 150 percent of the most recent federal poverty guidelines available.

The bill establishes in the Department of Education a dedicated, nonlapsing fund, designated as the “We Believe In You Fund.” The fund would be credited with all moneys appropriated or otherwise made available for the purposes of the fund, including, but not limited to, donations for which a taxpayer is eligible for a deduction under the provisions of the bill. Disbursements from the fund would be used for the purpose of paying the fee of a high school equivalency exam on behalf of a low-income individual.

The bill authorizes a gross income tax or corporation business tax deduction in an amount equal to the total amount of donations made by a taxpayer during a tax year to the We Believe In You Fund.

Currently, individuals who achieve the Statewide standard score on a New Jersey high school equivalency exam are awarded a State-issued high school diploma. A high school diploma is a foundational step toward economic security, and is often the minimum requirement for many jobs in the State. A high school diploma also provides access to higher education and military service. Without a diploma, career options may be limited. Additionally, a high school diploma significantly boosts lifetime earnings compared to individuals without a diploma. On average, diploma holders earn 70 percent more over their lifetime than those without a diploma. Individuals without a diploma may be more likely to face poverty and unemployment. This bill would make the high school equivalency test more accessible for low-income individuals in the State.