Last week, the Assembly unanimously passed A-3013 (Arnone, Biondi), which requires the Department of Community Affairs to conduct a study of the number and kind of shared services agreements entered into by school districts and municipalities from 1973 to January 1, 2001. The legislation is part of the Regional Efficiency Aid Program (REAP).

NJSBA supports this legislation, which seeks to identify additional school districts that have participated in sharing services since the enactment of the Inter-local Services Act on August 2, 1973.

REAP reduces the taxes of residential taxpayers in municipalities, school districts and counties that enter into shared services agreements. REAP combines the type of service, its percent of the budget of the local unit, and the population of the community in a formula that results in state-funded property tax relief that directly reduces the property taxes of homeowners in the participating municipalities. In 2000, taxpayers in 66 school districts received over $5.9 million in property tax relief.

Note: The Senate passed the bill June21 with an amendment that appropriates $100,000 to cover the cost of the study. On June 28, the Assembly passed the amended version. The bill now goes to the governor.