LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 4308
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JUNE 28, 2024
SUMMARY
Synopsis: Requires school districts to implement reading intervention program
for students in certain grades as part of implementation of New Jersey
Student Learning Standards in English Language Arts.
Type of Impact: Annual local school district expenditure increase.
Agencies Affected: Local school districts.
Office of Legislative Services Estimate
Fiscal Impact Annual
Estimated per school district cost
School District Expenditure Increase between $6,500 and $20 million
 The Office of Legislative Services (OLS) finds that this bill may result in an increase in local
school district expenditures, ranging from approximately $6,500 to $20 million per school
district. The range reflects different school district enrollment sizes, each district’s percentage
of students who may be deemed to exhibit a reading deficiency pursuant to the bill, and an
assumed per student cost of $2,500 to implement the reading intervention program required by
the bill.
 The OLS notes that actual costs incurred by school districts may differ significantly from the
estimated costs. In particular, it may be the case that certain school districts already operate
reading intervention programs that adhere to the provisions of the bill. In addition, actual per
student costs are likely to differ from the $2,500 assumed per student cost. Finally, the number
of students requiring reading intervention programs may differ when determined by a
screening assessment compared to the New Jersey Student Learning Assessment.
BILL DESCRIPTION
This bill requires that a school district offer a reading intervention program to students in
grades kindergarten through three that exhibit reading deficiencies as determined by
Commissioner of Education-approved screening assessments. The reading intervention program
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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is to: (1) utilize a data-driven multi-tiered system of supports; (2) provide explicit and systemic
instruction in phonological awareness, phonics, fluency, vocabulary, and comprehension, as
applicable; (3) monitor the progress of a student’s reading skills throughout the school year; and
(4) be adjusted throughout the year, if necessary, according to student needs.
The bill also requires the department to provide school districts with age-appropriate materials
designed to implement the program. Under the bill, school districts are required to adopt high-
quality instructional materials grounded in scientifically-based reading research to implement the
program. The department is to provide school districts with age-appropriate materials designed to
implement the provisions of this subsection.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that this bill will result in an increase in local school district expenditures,
ranging from approximately $6,500 to $20 million per school district. The range reflects different
school district enrollment sizes, percentages of students who may be deemed to exhibit a reading
deficiency pursuant to the bill, and an assumed per student cost of $2,500.
In conducting its analysis, the OLS first utilized information from the Department of Education
concerning third grade student performance levels on the New Jersey Student Learning
Assessments in English Language Arts that were administered in the Spring of 2023. The data
from the department shows the percentage of students in each district that score in one of five
performance levels as follows:
 Level 1: Did Not Yet Meet Expectations;
 Level 2: Partially Met Expectations;
 Level 3: Approached Expectations;
 Level 4: Met Expectations; and
 Level 5: Exceeded Expectations.
While the bill’s definition of “reading deficiency” does not tie specifically to a student’s
performance level on the New Jersey Student Learning Assessments, the OLS, for purposes of this
analysis, assumes that the bill’s definition means as either: 1) the number of students scoring in
Levels 1, 2, and 3; or 2) the number of students scoring in Levels 1 and 2. The OLS applies the
proportions of third grade students scoring at these levels in each school district to the district’s
overall enrollment in grades kindergarten through three. Doing so approximates the number of
students who may participate in the reading intervention program required by the bill.
After estimating the number of students who may exhibit a reading deficiency, the OLS then
assumes that the per student cost of implementing a reading intervention program is $2,500. While
publicly available research indicates a wide range of per students costs based on a variety of
factors, the OLS bases its estimate on a recent cost analysis of Michigan School districts
implementing a similar law known as the “Read by Three” law. That cost analysis indicated that
Michigan school districts spent an average of approximately $2,600 per student to implement the
requirements of the law.
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These assumptions yielded estimated cost increases to school districts between $6,500 and $20
million to implement the provisions of the bill. However, the OLS notes that actual costs incurred
by school districts may differ significantly from the estimated costs. In particular, it may be the
case that certain school districts already operate reading intervention programs that adhere to the
provisions of the bill. In addition, actual per student costs are likely to differ from the $2,500
assumed per student cost. Finally, the number of students requiring reading intervention programs
may differ when determined by a screening assessment compared to the New Jersey Student
Learning Assessment.
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.).