SENATE EDUCATION COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 4064

STATE OF NEW JERSEY

DATED:  MAY 11, 2026

      The Senate Education Committee reports favorably a Senate Committee Substitute for Senate Bill No. 4064.

      This bill exempts certain refunding bonds issued by school districts from prior Local Finance Board approval.

      Under current law, bonds issued by a school district may be funded or refunded prior to maturity to achieve savings on debt service payments.  Current law permits a school district meeting all of the conditions specified by regulations of the Local Finance Board in the Department of Community Affairs to authorize and issue refunding bonds without prior approval of the Local Finance Board, where the issuance of those refunding bonds realizes debt service savings on the outstanding obligations.

      Current regulations of the Local Finance Board require that one of the conditions for the issuance of refunding bonds by school districts is that the present value savings of the issuance be at least three percent.   This bill lowers the threshold to permit refunding bonds without prior Local Finance Board approval where the present value savings is at least two percent, instead of three percent under current requirements.