LEGISLATIVE FISCAL ESTIMATE
[Second Reprint]
ASSEMBLY, No. 3681
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: MARCH 2, 2023
SUMMARY
Synopsis: Establishes New Jersey Educator Scholarship Program; appropriates
$3 million.
Type of Impact: Annual State expenditure increase to the General Fund.
Agencies Affected: Higher Education Student Assistance Authority, Department of
Education.
Office of Legislative Services Estimate
Fiscal Impact Year 1 Subsequent Years
State Cost Increase Up to $3 million Up to $4 million
 The Office of Legislative Services (OLS) concludes that the establishment of the New Jersey
Educator Scholarship program would result in an increase in State expenditures of up to $3
million in the first year the bill is in effect and up to $4 million in each subsequent year to
provide 200 scholarships annually.
BILL DESCRIPTION
This bill establishes the New Jersey Educator Scholarship Program in the Higher Education
Student Assistance Authority.
Scholarships would be awarded annually to 50 students enrolled in each of the first, second,
third, and fourth years of an educator preparation program at a public institution of higher
education in the State. Each student would receive a scholarship up to the amount of remaining
tuition that is not covered by State, federal, or any other need-based grant or merit scholarship, for
up to 18 credits per semester, and a stipend in the amount of $5,000 annually. The bill provides
that the scholarship amount may not exceed the average in-State tuition amount charged by the
four-year public institutions of higher education in the academic year in which the scholarship is
awarded. A student would be eligible to receive the scholarship for a maximum of four years of
study or until the student receives a bachelor’s degree and completes an educator preparation
program, whichever occurs first. As a condition of participation in the program, the student would
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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be required to seek and accept full-time employment as a teaching staff member with a public
school district, charter school, or renaissance school in the State within the first five full years
following graduation. The student would be required to serve in employment with a public school
district in the State for no less than three full school years, during which time the student would
receive mentoring coordinated by the hiring district or school to aid the student in furthering a
career in education.
A student’s scholarship would remain in effect provided that the student achieves satisfactory
academic progress and continues to meet eligibility requirements. Under certain circumstances, a
student whose scholarship has been terminated may be required to repay all or part of the amount
of any scholarship or stipend received as a debt to the State.
The bill makes an appropriation of $3 million from the General Fund to the Higher Education
Student Assistance Authority and provides for a $4 million appropriation in each fiscal year
beginning in FY 2024.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the establishment of the New Jersey Educator Scholarship program
would result in an increase in State expenditures of up to $3 million in the first year the bill is in
effect and up to $4 million in each subsequent year for the provision of 200 scholarships annually.
The bill stipulates that 50 students in each of the first, second, third, and fourth years of an
educator preparation program will receive scholarships and stipends toward the completion of a
bachelor’s degree and an educator preparation program, and that the amount of the scholarship
may not exceed the average amount of tuition at the public institutions of higher education in the
State. The average cost of tuition at senior public institutions of higher education in New Jersey is
$14,000, resulting in a cost of approximately $2.8 million for 200 scholarships. Additionally, the
bill stipulates that each scholarship recipient would receive a $5,000 annual stipend, which would
amount to a total of $1 million for all 200 students. Assuming that each of the scholarship recipients
attends a senior public institution of higher education at current tuition rates, these costs combine
for a total cost of $3.8 million to implement the provisions of the bill in each year.
Furthermore, the bill appropriates $3 million for the first year of the program, in addition to
the $1 million appropriated in the FY 2023 Appropriations Act, and provides for a $4 million
appropriation in each subsequent year.
Finally, the OLS notes that the State may experience minor revenue increases following the
fourth year of implementation of the bill, to the extent that scholarship recipients do not fulfill the
requirements of the bill and are therefore required to repay the amount of any stipend and
scholarship received.
Section: Education
Analyst: Abigail Chambers
Assistant Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
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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.).