Bill
A 4854
Shifts nonpublic auxiliary/remedial aid from per-pupil upfront payments to a per-service cost-reimbursement system, with quarterly claims and equitable distribution.
Status (selected actions)
- Introduced: Sept. 23, 2024
- Passed Assembly: May 22, 2025 (78–0–0)
- Reported by Senate Education and Senate Budget & Appropriations Committees with amendments: June 5, 2025 and Nov. 13, 2025 (4R)
- Companion: S4312
- Current status (latest report): Reported out of Senate committee with amendments
Purpose
- Change how New Jersey allocates and pays State aid for auxiliary and remedial services provided to eligible nonpublic (private/parochial) school students, with the stated intent that annual appropriations for these services be fully expended each year and that service quality and program sustainability be maintained.
Key provisions / substantive changes
- Payment method
- Replaces the current advance-payment model (ten installments based on a per‑pupil allocation) with a cost‑reimbursement system. School districts apply for and receive reimbursement for eligible costs (amended to permit quarterly applications; implementation details to be announced each year).
- Reimbursements are to be paid throughout the school year until the annual appropriation for the services is exhausted.
- Rate / allocation method
- Eliminates the statutory per‑pupil allotment formula. Instead the Commissioner of Education will establish maximum per‑service aid amounts.
- Maximum per‑service amounts are to be calculated by dividing the annual appropriation for the programs by the average number of documented services delivered in the prior three school years.
- Triennial rate review
- The Commissioner must commission a survey in the second full school year after enactment and every three years thereafter to collect provider cost data; findings are to be reported to the Governor and Legislature and used to inform appropriation recommendations.
- Administrative and program safeguards
- The Commissioner must seek to equitably distribute available funds and, to the extent permitted by federal law, may limit duration/frequency of certain services to serve more students across the year.
- Removes statutory requirements that districts refund unexpended nonpublic aid and certain statutory per‑pupil calculation provisions (and removes automatic prorating language).
- Annual announcement of reimbursement details (e.g., by July 15) and earliest submission (e.g., Sept. 1) are required under committee amendments.
Who is affected
- Nonpublic school students eligible for auxiliary/remedial services (e.g., special education evaluations, speech correction, supplementary instruction, compensatory education, limited-English services)
- Local public school districts (which deliver the services and will submit reimbursement claims)
- Service providers and the NJ Department of Education (for rate-setting, surveys, and administration)
Fiscal impact (Office of Legislative Services)
- OLS estimates an indeterminate annual State cost increase. Rationale:
- Greater flexibility and the per‑service approach may increase service utilization (funds previously unspent under the per‑pupil/advance system may be claimed).
- Periodic provider rate increases may occur based on survey findings and subsequent appropriation changes (but any appropriation increase requires legislative and gubernatorial approval).
- Local district expenditures would likely increase alongside higher State reimbursements (net effect for districts is offsetting).
- The triennial survey may incur additional State administrative costs (indeterminate).
Effective/application timing
- Committee amendments specify immediate effectiveness and first application in the first full school year following enactment (committee reports reference application to the 2025–2026 school year in earlier committee texts).
Sponsors (selection)
- Assembly: Eliana Pintor Marin (primary), Alexander “Avi” Schnall, Gary S. Schaer; co‑sponsors include Dawn Fantasia and others.
Primary change in one line
- Moves nonpublic auxiliary/remedial aid from a per‑pupil, advance‑payment model to a per‑service, cost‑reimbursement model with periodic provider cost reviews and new administrative controls to distribute appropriations equitably.
Compiled from official sources — confirm details with the bill’s official record.
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