Tax Cap, ‘Super’ Superintendent Bills Now Law

Tax Cap, ‘Super’ Superintendent Bills Now Law

Gov. Jon S. Corzine signed the property tax cap and credit bill (A-1) and the ‘super’ county superintendent bill (A-4) on April 3.

Tax Cap A-1 places a 4 percent local levy cap on school, municipal and fire district budgets. It will also provide residents with property tax relief funded through part of last year’s 1-cent sales tax hike.

The bill also allows school districts to seek voter approval to exceed the tax levy cap. Beginning in 2008, these second questions must receive a supermajority— 60 percent of the vote—to pass. For the 2007 Annual School Election, a simple majority of 50 percent will be needed to approve the above-cap question.

The state Department of Education had based its 2007-2008 budget development guidelines on A-1 even though the bill had not yet become law.

A-1 also provides long-sought flexibility for school boards that participate in the State Health Benefits Program. (See sidebar, page 4.)

Visit NJSBA’s property tax cap resource page at www.njsba.org/a1/ for information about the new law.

‘Super’ County Superintendent A-4, the “CORE” act, will create 21 executive county superintendents with far-reaching authority over local school district spending and operations. The officials will be appointed by the governor with the advice and consent of the Senate.

The executive county superintendents will also devise plans to eliminate send-all, or non-operating, school districts in their counties within one year. They will propose the restructuring of all districts into kindergarten through grade 12 systems within three years.

Unlike earlier versions of A-4, the bill that was signed into law does not address school elections, thereby leaving base budget elections and school board member elections in April.

‘Base Closing’ Approach Corzine also approved A-15/S-12, which creates a commission to study and recommend municipal consolidation. The approach is similar to the federal military base realignment and closure panel.

The new law does not directly address school districts. However, municipal consolidation could possibly result in future changes to district boundaries since current statute aligns school districts along municipal borders.