TRENTON, NJ — A New Jersey Assembly committee has approved a bill that would restructure how the state reimburses school districts for providing auxiliary and remedial services to nonpublic school students.
Key Points
- Assembly Bill 4854 would establish a new reimbursement model for nonpublic school services
- School districts would apply quarterly for state aid, within revised per-service funding limits
- The bill eliminates current formulas and refund rules for unused funds, aiming to improve efficiency
The Assembly State and Local Government Committee on Thursday advanced Assembly Bill No. 4854 with amendments, creating a new process for allocating state aid tied to educational support services for students in nonpublic schools. The bill is intended to ensure more accurate and equitable distribution of funds, while allowing the full use of annual appropriations.
The measure requires the Commissioner of Education to set per-service aid amounts each year based on projected usage and cost trends. These amounts will be designed to exhaust the full appropriation by the end of the school year and will be adjusted to ensure districts are reimbursed fairly.
New reimbursement timeline and rules
Under the amended bill, districts may submit reimbursement applications on a quarterly basis beginning September 1, with the Department of Education announcing details by July 15 each school year. Districts must follow defined procedures, documentation requirements, and budgeting guidelines to qualify for payment.
To further improve equity, the bill permits the commissioner—where allowed under federal law—to limit the duration and frequency of some services, helping extend funding to more eligible students over the course of the year.
The bill also repeals sections of existing law that required districts to return unused funds and that mandated proration of aid when appropriations fell short. Additionally, districts would no longer be obligated to spend more than the per-service aid amount set by the commissioner.
Legislative intent behind the changes
Supporters of the legislation say the new structure will create a more responsive and data-driven system for funding educational services to nonpublic students, while avoiding underuse or over-concentration of limited state aid.
The amended bill now heads for further legislative consideration.
