Lakewood’s state delegation is backing new legislation that could allow New Jersey school districts to keep and redirect unused state aid for nonpublic schools instead of sending the money back to the state, a move supporters say would expand resources for private school students without increasing taxes.
Introduced earlier this month, Assembly Bill A4906 would let districts transfer unspent funds between two existing nonpublic school aid programs — nursing services and security funding — when costs in one category come in under budget. Current law requires districts to refund leftover aid after the school year ends.
The proposal is sponsored by Assemblyman Avi Schnall of Lakewood and Assemblyman Gary Schaer of Bergen and Passaic counties. Senator Robert Singer, who represents parts of Ocean County including Lakewood, is also pushing for the measure as part of a broader effort to increase flexibility and support for private school communities.
Right now if a project comes under budget, the state expects the excess funding to be returned. Under this law, that overage would be kept, opening to door for a new type of fraud; overbudgeting valid state projects to fund other private school projects not covered under state funding.
Redirecting Unused Aid
Under the bill, if a district spends less than expected on nonpublic nursing services, the remaining money could instead be used for private school security expenses. The reverse would also be allowed — unused security aid could help cover nursing-related costs.
The legislation applies to two longstanding state-funded programs that provide assistance to nonpublic schools through local districts:
- Nursing and health services aid for nonpublic students
- Security aid for private school safety measures and equipment
Backers argue the change addresses a recurring issue in districts with large private school populations, where funding allocations may not perfectly match annual needs in each category.
“This allows schools to maximize dollars already appropriated by the state,” supporters of the measure say, pointing to growing security costs and healthcare demands inside nonpublic schools.
Lakewood at the Center of Debate
The proposal carries major implications for Lakewood, home to one of the nation’s largest Orthodox Jewish school systems and one of New Jersey’s highest concentrations of private school students.
State aid tied to nonpublic enrollment has become increasingly significant in Ocean County as enrollment in yeshivas and private schools continues to grow. Supporters say rigid funding rules can leave districts returning money in one category even while schools face shortages in another.
Critics of expanded nonpublic funding in New Jersey have historically argued that public school systems already face financial strain and should not lose additional flexibility or resources. Supporters counter that the money is already designated for nonpublic students and the bill simply changes how unused balances may be applied.
What the Bill Changes
The legislation amends portions of two existing New Jersey laws governing nonpublic school aid programs.
The bill specifically states that when “the expenditure incurred by any district is less than the amount of State aid received,” districts may use leftover funding from one program “for expenditures” under the other instead of issuing a refund to the state.
The measure does not create a new funding stream or increase state appropriations. Instead, it changes the rules governing how unused aid may be redistributed internally.
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Key Points
• NJ bill would let districts redirect unused private school aid instead of refunding it
• Proposal affects nonpublic nursing and school security funding programs
• Lakewood lawmakers say the measure increases flexibility without adding new taxes
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Security Costs Drive Push
The legislation arrives as private schools across New Jersey continue investing heavily in campus security, surveillance systems, and safety upgrades amid national concerns over school threats.
Under current law, districts receive state aid based on nonpublic school enrollment estimates submitted annually to the commissioner of education. If actual expenses fall below the allocated amount, the unused balance must be returned after the school year concludes.
Sponsors argue that requirement can create inefficiencies, especially in districts where one category — such as nursing services — may cost less than projected while security needs increase unexpectedly.
The bill would preserve the requirement that districts refund any remaining money after all eligible expenditures are accounted for.
What Happens Next
Assembly Bill A4906 was introduced May 7 in the New Jersey Legislature and remains in the early stages of the legislative process.
Lawmakers will next determine whether the proposal advances through committee hearings before possible votes in the Assembly and Senate.
If approved, the measure would take effect immediately, according to the bill text.
