| |
Previous 4% Cap |
New 2.0% Cap |
| PRIME MOVERS |
Senate and Assembly leadership |
Gov. Christie and Sen. President Sweeney |
| METHOD OF ENACTMENT |
- Signed into law by then-Gov. Jon Corzine in April 2007 as P.L.2007, c.62
- Passed during Legislature’s Special Session Property Tax Reform (2006-2007)
|
- Signed into law by Gov. Christie on July 13, 2010 as P.L.2010, c.44.
- Differs from the governor’s original plan to implement a cap through a Constitutional amendment. As a result, future change could take place through legislation, including provisions in the annual state budget.
|
| EFFECTIVE PERIOD |
- Would have expired after the 2011-2012 school budget year
- If lawmakers had not adopted a new cap before then, the previous “S-1701 cap” would have returned.
- S-1701 placed a 2.5% cap on increases in total school revenue (property tax, state funding, federal aid), enabling property tax levy increases to make up for flat or reduced state aid
|
- To become effective 2010-2011
- Permanent (no expiration)
|
ALLOWABLE PROPERTY
TAX INCREASE |
4% |
2% |
| BASIS |
Previous year’s school tax levy, adjusted for enrollment increases and debt service |
Previous year’s school tax levy, adjusted for enrollment increases and debt service |
| OTHER ADJUSTMENTS |
- Reduction in state aid
- Health benefits cost increases
- Pension cost increases
|
- Health benefits cost increases
- Pension cost Increases
- Emergency situations (does not apply to school districts)
|
COMMISSIONER OF
EDUCATION WAIVERS |
- Inability to meet state core academic standards
- New school start-up costs
- Appropriation of non-recurring revenues
- Cost increases above 4% for the following:
- Energy
- Capital outlay
- Extraordinary special education costs
- Tuition (sending-receiving, vocational)
- Insurance premiums
- Failure to meet NJQSAC
- Student Health and Safety
|
Inability to meet state core academic standards as indicated in NJQSAC review. |
| SECOND QUESTIONS |
Supermajority (60%) of participating voters may approve question to spend above cap for specific purposes not related to the provision of a thorough and efficient education. |
Simple majority of participating voters may approve question to spend above cap for specific purposes not related to the provision of a thorough and efficient education. |
CAP BANKING
(Application of “unused” portion of district’s current-year cap to future years’ tax levy increases.) |
Not permitted |
Allowed |
Page