Bill Summary – FastDemocracy

LEGISLATIVE FISCAL ESTIMATE
                 SENATE COMMITTEE SUBSTITUTE FOR
                                SENATE, No. 2647
                             STATE OF NEW JERSEY
                               221st LEGISLATURE
                                             DATED: JUNE 28, 2024
                                                  SUMMARY
    Synopsis:                   Establishes Office of Learning Equity and Academic Recovery in
                                DOE.
    Type of Impact:             Annual State expenditure increase.
    Agencies Affected:          Department of Education.
                                       Office of Legislative Services Estimate
    Fiscal Impact                                                    Annual
    State Expenditure Increase                                $260,000 to $650,000
    The Office of Legislative Services (OLS) concludes that this bill would result in an annual
     State expenditure increase for the establishment and operation of the Office of Learning Equity
     and Academic Recovery. The expenditure increase would be primarily derived from the
     payment of salaries and benefits to staff.
    The OLS estimates that annual staffing costs for the office would range from $260,000,
     assuming the payment of salaries and benefits is for just a chief administrator position, to
     $650,000, assuming a chief administrator and three additional staff members are hired.
    The OLS determines there would also be additional indeterminate annual costs for other
     operating expenses of the new office.
                                            BILL DESCRIPTION
     This bill establishes the Office of Learning Equity and Academic Recovery within the
Department of Education of New Jersey. The office's primary purpose is to promote student
literacy and advance learning equity through academic recovery practices. Personnel for the office
will be selected by the Commissioner of Education, and the office's leadership will directly advise
the commissioner on matters related to these goals.
      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 SCS for S2647
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    The office will also be responsible for: improving the department's capacity to make data-
driven decisions regarding literacy and learning equity policies; identifying, compiling, and
analyzing data from various sources to better understand the factors that impact reading, English-
Language Arts, and other student performance metrics; coordinating resources within the
department to promote the implementation of effective literacy and learning acceleration policies;
conducting research on best practices in literacy, learning equity, and learning acceleration;
supporting school districts in developing and implementing best practices for improving
elementary literacy and academic recovery; and supporting the department in seeking out
opportunities and leading efforts to obtain funding, professional development, and other policy
supports that promote literacy and learning equity.
    The bill states that the office will be funded by any combination of State and federal funds, in
accordance with the requirements of any federal funds.
                                           FISCAL ANALYSIS
EXECUTIVE BRANCH
   None received.
OFFICE OF LEGISLATIVE SERVICES
    The OLS concludes that this bill would result in an annual State expenditure increase for the
establishment and operation of the Office of Learning Equity and Academic Recovery. The
expenditure increase would be primarily derived from the payment of salaries and benefits to staff.
In estimating these staffing costs, the OLS notes that according to an Office of Management and
Budget circular, the applicable fringe benefit rate for personnel who are members of the Public
Employees’ Retirement System is 60.8 percent of bases salaries. The OLS assumes that the chief
administrator of this office will have total annual compensation of $257,280, which is comprised
of a base salary of $160,000 and fringe benefits of $97,280. Each additional staff member is
estimated to have total annual compensation of $128,873, which is comprised of a base salary of
$80,145 and fringe benefits of $48,728, based on the median salary for a State employee in 2023.
Therefore, the total estimated annual cost for the office will range from $260,000, assuming the
only new position created as a result of the bill is a chief administrator position, to $650,000,
assuming the administrator and three additional staff members are hired.
    The OLS determines there would also be additional indeterminate annual costs for other
operating expenses of the new office. For example, these expenses could include securing
appropriate office space, the magnitude of which would depend on the availability of existing
office space within the Department of Education.
  Section:      Education
  Analyst:      Noah Callahan
                Assistant 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.).