LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 787
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: MAY 22, 2024
SUMMARY
Synopsis: Provides supplemental transportation aid to certain districts
participating in interdistrict public school choice program.
Type of Impact: State expenditure increase from the Property Tax Relief Fund.
Revenue increase for certain school choice districts.
Agencies Affected: Department of Education. Certain School Choice Districts.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase Indeterminate
Local Revenue Increase Indeterminate
 The Office of Legislative Services (OLS) concludes that this bill will lead to indeterminate,
likely modest costs for the State to provide supplemental transportation aid to certain school
districts participating in the Interdistrict Public School Choice Program. Any school choice
district receiving aid under the bill will experience a revenue increase.
 The State expenditure increase will likely be modest given the bill’s limited applicability and
specific requirements for supplemental transportation aid. The OLS finds that this bill will
likely only apply to the Englewood City School District.
BILL DESCRIPTION
This bill provides supplemental transportation aid to certain districts participating in the
Interdistrict Public School Choice Program.
Under the bill, a choice district located in a city of the second class, which has been directed
by the New Jersey Supreme Court to engage in efforts to desegregate the student population, is
responsible for providing transportation, including the organization of bus routes and bidding for
transportation services, or aid-in-lieu-of transportation, to certain elementary and secondary school
pupils to attend the choice district. Under the bill, the sending district is to receive State aid for
transportation for those students transported to the choice district. The sending district is then to
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
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pay directly to the choice district the State aid for transportation, or aid-in-lieu-of amount, received
by the sending district pursuant to the bill.
The bill also provides supplemental State aid for transportation for a choice district responsible
for transporting students from a sending district pursuant to the provisions of the bill when the
total costs of providing transportation from the sending districts to the choice district exceeds the
amount of State aid for transportation the sending district receives pursuant to the bill. To be
eligible to receive the supplemental State aid for transportation, the choice district is required to
demonstrate to the commissioner that the bus routes utilize cost efficient methods. The choice
district is to annually report to the Department of Education at the end of each school year the cost
of providing transportation to students from a sending district that exceed the amount of funds the
choice district receives from the sending district pursuant to the bill. The department is required
to reimburse the choice district for the additional costs reported.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that this bill will lead to indeterminate, likely modest costs for the State to
provide supplemental transportation aid to certain school choice districts. Any school choice
district receiving aid under the bill will experience a revenue increase. The State expenditure
increase will likely be modest given the bill’s limited applicability to school districts that:
participate in the Interdistrict Public School Choice Program; are located in a city of the second
class; and have been directed by the New Jersey Supreme Court to engage in efforts to desegregate
the student population. The OLS finds that there are only three school districts located in cities of
the second class that participate in the Interdistrict Public School Choice Program. Of those three
school districts, the OLS is aware of only one district that is under desegregation orders from the
New Jersey Supreme Court: Englewood City School District.
The costs of the bill are indeterminate because the OLS does not have access to information
that would indicate the number of students for which the total costs of providing transportation
would exceed the amount of State transportation aid received for those students.
Section: Education
Analyst: Christopher Myles
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.).