The Assembly held a voting session on Oct. 29 and passed a package of three bills focused on district fiscal oversight reform along with other education-related legislation. 

The New Jersey School Boards Association is monitoring all bills relevant to boards of education and will continue to post timely Legislative Updates in School Board Notes to highlight recent legislative action. For recordings of committee meetings and the most up-to-date information regarding specific legislation, please visit the New Jersey Legislature’s website. 

On the Governor’s Desk 

Following an Assembly voting session on Thursday, Oct. 29, the following bill now awaits the governor’s signature: 

Enrollment of Twins in Preschool S-4349/A-5218 would permit a parent or guardian of twins or higher order multiples enrolled in public preschool operated by a school district, Head Start program, or licensed childcare provider to select shared or separate classroom placements for their children. The bill would additionally permit the parent or guardian of twins or higher order multiples to request that the twins or higher order multiples be treated as one unit in a public preschool lottery system or open enrollment.  

The NJSBA supports the bill, which was passed by the Senate on Oct. 22. 

Assembly Voting Session 

The Assembly held a voting session on Thursday, Oct. 29 and – in addition to the bill above – passed the following education-related legislation: 

Fiscal Oversight Reform Package The Assembly passed the following package of bills – sponsored by Assemblywoman Bagolie – focused on fiscal oversight and budgeting reform:  

  • A-5205/A-5208 would establish certain valuation and reporting mechanisms related to school district liabilities for accumulated unused leave, including: 1) requiring a school district, in its annual audit, to calculate the total value of accrued liabilities for compensated absences of district employees; 2) requiring a school district to maintain a current schedule of accrued liabilities for compensated absences that details various information and to provide that report to the board of education monthly and quarterly; 3) requiring the Commissioner of Education to examine a school district’s level of liabilities for compensated absences; and 4) permitting a board of education to establish a leave liability reserve account to be used to finance the payment of accumulated unused absences for which an employee may be compensated. The bill would also authorize a board of education to establish a cost stabilization reserve account to finance unanticipated increases in total health care costs, student transportation expenses, and special education and related services. Finally, the bill would permit a board of education to apply to the Commissioner of Education for approval to make mid-year budget adjustments to address significant unanticipated cost increases in general fund expenses. 
  • A-5206 would establish procedures to be followed by chief school administrators, school business administrators, boards of education, and school employees related to the financial management and fiscal stability of districts. These new procedures would include quarterly reconciliations of a district’s position control roster by the chief school administrator; the required adoption of a board policy regarding the reporting of fiscal concerns in a district; and additional training for school business administrators and board of education members concerning school budgeting, governmental accounting, and financial commitments. As amended, the bill would also require a purchasing agent to certify that a board of education has acted in accordance with the provisions of the Public School Contracts Law prior to the awarding or approval of a purchase, contract, or agreement, and if the board has not done so, the purchasing agent would be required to file a report with the Office of Controversies and Disputes within NJDOE. 
  • A-5207 would expand the duties of the executive county business official and establish processes for the fiscal review of school districts by the executive county superintendent and the Commissioner of Education. The bill would require the executive county business official to, on a rolling basis, conduct fiscal reviews of each school district under its purview on a timeline established by the executive county superintendent, and would require the establishment of corrective action plans for certain school districts whose fiscal reviews identify significant fiscal concerns in two consecutive reviews. The bill would also require the commissioner, in consultation with the State Comptroller, to develop and administer a Comprehensive Statewide Fiscal Early Warning System to monitor financial risk indicators to enable timely and structured intervention of districts that are at risk of financial distress.  

The NJSBA previously provided verbal testimony on the bill package during committee hearings. The Association expressed appreciation for numerous components of the package, including: the ability for boards of education to establish leave liability reserve accounts and cost stabilization reserve accounts, which will give boards additional tools to achieve financial flexibility; periodic review of position control rosters; expanded capacity of executive county business officials; and the development of a fiscal early warning system, which may help districts anticipate and proactively address potential fiscal difficulties. At the same time, the NJSBA expressed a need to further ensure that school districts have the resources and capacity to execute these additional oversight measures with fidelity. These three bills have not yet moved in the Senate. 

Harassment and Bullying in Nonpublic Schools A-5254, titled the “Jack Reid Law: Protect All Students Act,” would prohibit bullying of nonpublic school students and require each nonpublic school to adopt an anti-harassment and bullying policy. The bill would establish requirements for nonpublic schools that are separate from those already established for public schools; under current state law, each public school is required to abide by the provisions of the “Anti-Bullying Bill of Rights Act,” and while nonpublic schools are encouraged to comply with the provisions of that act, they are not required to do so.  

The NJSBA is monitoring the bill. Its counterpart in the Senate, S-4467, was approved by the Senate Education Committee on Oct. 1. 

Revised FAFSA Graduation Requirement S-3245/A-2470 would make permanent the requirement that students complete a state or federal financial aid application as a prerequisite for receiving a high school diploma, unless a waiver is submitted. As amended on the Assembly floor, the Commissioner of Education would be required to annually issue a report to the Governor on the number of students completing a financial aid form pursuant to the requirement. P.L.2023, c.295 previously created a three-year pilot program requiring the grade 11 classes in 2023-2024, 2024-2025, and 2025-2026 to complete the application and required the Higher Education Student Assistance Authority (HESAA) to issue a report detailing the requirement; that report is due by Jan. 2027 and has not yet been released.  

The NJSBA has previously testified in opposition to the bill, encouraging the Legislature to wait for the release of the HESAA report due by Jan. 2027 before making the graduation requirement permanent. The bill was passed by the Senate in June, but following amendments in the Assembly, it will need to be reconsidered and passed once again by the Senate before it can proceed to the Governor for signature. 

Review of APSSD Audits A-1646 would provide a timeline within which the Commissioner of Education must issue any adverse finding, adjustment, or penalty regarding an audit submitted by an approved private school for students with disabilities (APSSD). For audits submitted for any school year ending after the effective date of the bill, the action of the commissioner must be within seven years of the date of the submission of that audit. For audits submitted for any school year ending prior to the effective date of the bill, the action of the commissioner must be within seven years of the date of the submission of that audit or three years following the effective date of the bill, whichever is the later date.   

The NJSBA is monitoring the bill, which has not yet moved in the Senate. 

To view the full text of any of the bills summarized above, please visit the New Jersey Legislature’s website.