This bill mandates that nonpublic secondary schools and independent institutions of higher education in New Jersey must make annual payments to school districts for educational costs associated with students residing in tax-exempt housing owned by these institutions. The requirement is contingent upon the adoption of a resolution by the governing body of the municipality or municipalities that make up the school district. The payment amount is determined by the district's per pupil general fund local levy for the budget year, calculated by dividing the general fund local levy by the resident enrollment. The board of education is responsible for notifying the nonpublic school or independent institution by November 1 each year about the number of resident students and the total payment owed, which must be paid within 60 days of notification.

Additionally, the bill amends existing law to ensure that the total payments received from nonpublic schools and independent institutions are deducted from the tax levy growth cap for the following school year. This adjustment aims to ensure that the additional revenue generated from these payments is utilized to lower property taxes for residents. The bill is set to take effect immediately and will apply to the first full school year following its enactment.

Statutes affected:
Introduced: 18A:7F-38