Bill Summary – FastDemocracy

LEGISLATIVE FISCAL ESTIMATE
                               ASSEMBLY, No. 5459
                             STATE OF NEW JERSEY
                              220th LEGISLATURE
                                             DATED: JULY 28, 2023
                                                  SUMMARY
    Synopsis:                   Requires Secretary of Agriculture to establish Farm to School Local
                                Food Procurement Reimbursement Grant Program to reimburse
                                school districts for costs expended in sourcing and procuring local
                                foods for students; appropriates $6,500,000.
    Type of Impact:             Time-limited State expenditure increase; time-limited school district
                                revenue and expenditure increases.
    Agencies Affected:          Department of Agriculture; school districts.
                                       Office of Legislative Services Estimate
    Fiscal Impact                                          Year 1                 Year 2 & Thereafter
    State Expenditure Increase                        Up to $6.5 million               Indeterminate
    School District Revenue Increase                  Up to $5.5 million               Indeterminate
    School District Expenditure Increase                Indeterminate                  Indeterminate
    The Office of Legislative Services (OLS) determines that this bill would result in a State
     expenditure increase of up to $6.5 million the first year the bill is in effect and by an
     indeterminate amount thereafter. Of this amount, $5.5 million would be to reimburse schools
     participating in the grant program and $1 million would be for the administrative expenses of
     the Department of Agriculture to establish and operate the program. If the full $6.5 million is
     not expended in the first year, the residual amount will be spend in subsequent fiscal years
     until the full $6.5 million is exhausted.
    School districts that elect to participate in the program will incur additional operating expenses
     as well as revenue from State reimbursements of up to $5.5 million across all participating
     school districts.
      Office of Legislative Services                                       Legislative Budget and Finance Office
           State House Annex                                                       Phone (609) 847-3105
              P.O. Box 068                                                          Fax (609) 777-2442
      Trenton, New Jersey 08625                                                     www.njleg.state.nj.us
                                              FE to A5459
                                                    2
                                        BILL DESCRIPTION
   This bill would require the Department of Agriculture to establish and operate the Farm to
School Local Food Procurement Reimbursement Grant Program. The grant program would
provide reimbursement to eligible school districts in the State that implement or undertake
expanded or modified local food procurement policies and activities.
   The department would be authorized to annually award a program grant to each eligible school
district that submits an application in amounts between $10,000 and $250,000 based upon the size
of the district. Grants would be awarded on a competitive basis, directly to an applicant school
district, within the limits of moneys appropriated or otherwise made available to the Department
of Agriculture for the program’s purposes. The department would be required to give priority
funding preference to certain eligible school districts.
   The bill would appropriate $6.5 million from the General Fund to the Department of
Agriculture for the grant program. Of that amount, $5.5 million would be dedicated for funding
grant awards and $1 million would be dedicated for the department’s administrative costs.
                                        FISCAL ANALYSIS
EXECUTIVE BRANCH
   None received.
OFFICE OF LEGISLATIVE SERVICES
    The OLS determines that this bill would result in a State expenditure increase of up to $6.5
million the first year the bill is in effect and by an indeterminate amount thereafter. Of this amount,
$5.5 million would be to reimburse schools participating in the grant program and $1 million
would be for the administrative expenses of the Department of Agriculture to establish and operate
the program. If the full $6.5 million is not expended in the first year, the residual amount will be
spend in subsequent fiscal years until the full $6.5 million is exhausted.
    School districts that elect to participate in the program will incur additional operating expenses
as well as revenue from State reimbursements of up to $5.5 million across all participating school
districts. A school district receiving a reimbursement grant in a particular year is permitted to
apply for a grant in the following year or any subsequent years. However, school districts are
prohibited from rolling grant funding from one year to the next. Subject to limited exceptions, any
grant funds awarded to a school district that are unclaimed by the end of the annual disbursement
period are to be reclaimed by the department and used for future grant program awards.
  Section:      Environment, Agriculture, Energy, and Natural Resources
  Analyst:      Neha Patel
                Senior Fiscal Analyst
  Approved:     Thomas Koenig
                Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).