LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 5412
STATE OF NEW JERSEY
220th LEGISLATURE
DATED: JUNE 26, 2023
SUMMARY
Synopsis: Establishes nonpublic school transportation program to provide
funding to consortiums of nonpublic schools that will assume
responsibility for mandated nonpublic school busing.
Type of Impact: Annual State expenditure increase.
Annual school district expenditure and revenue increases.
Agencies Affected: Department of Education; local school districts.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Cost Increase Indeterminate
Local Cost Increase Indeterminate
Local Revenue Increase Indeterminate
 The Office of Legislative Services (OLS) determines that this bill will result in an
indeterminate annual increase in State costs associated with the creation of consortiums for
nonpublic school transportation. The magnitude of the cost increase would depend on the
number of consortiums created and the cost per pupil of providing transportation for each
consortium.
 Based on assumptions and data described in detail in the fiscal analysis, the OLS estimates that
this bill could cost as much as $12.1 million in FY 2024. However, actual cost increases are
likely to be more moderate, considering that the State does reimburse some districts for some
amount of per pupil costs. The OLS does not have access to specific data concerning per pupil
transportation costs needed to provide a more precise estimate.
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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BILL DESCRIPTION
This bill establishes a nonpublic school consortium transportation program to provide funding
to consortiums of nonpublic schools that will assume responsibility for participating school
districts’ mandated nonpublic school busing for those students.
Under the bill, a participating school district will pay to the consortium an amount equal to the
aid in-lieu-of transportation amount, currently $1,022, for each nonpublic school pupil residing in
the district who is attending a nonpublic school which is a part of the consortium and who is
required by law to be transported by the district. The consortium is to assume the responsibilities
of transporting the pupils for whom it receives payment from the school district. A consortium
may provide non-mandated transportation to students attending the nonpublic schools, provided
that the parents or guardians of those students pay all of the costs of that transportation.
The bill provides that if the per pupil cost of the lowest bid received exceeds the aid in-lieu-of
transportation amount, the parent or guardian of the student will be eligible to receive the aid in-
lieu-of transportation amount from the consortium for that school district. At the end of the school
year, the consortium will refund to the resident school district a portion of the aid in-lieu-of amount
for a nonpublic school student who did not receive transportation for the entire school year. If any
funds remain unexpended by the consortium at the end of the school year, the consortium is
required to allocate that amount among the participating school districts in proportion to the
number of nonpublic school pupils for whom the school district paid the consortium.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS determines that this bill will result in an indeterminate increase in State costs
associated with the creation of consortiums for nonpublic school transportation. The magnitude
of the cost increase for the State would depend on the number of consortiums created and the cost
per pupil of providing transportation for each consortium compared to the current cost per pupil
of providing transportation in each participating school district.
Currently, school districts are responsible for providing transportation services to certain
nonpublic school students, and the State reimburses districts for per pupil transportation costs in
excess of $710 and up to $1,022. Under the bill, a school district would pay to the consortium
$1,022 regardless of actual per pupil transportation costs incurred by the consortium. The State
would then reimburse school districts the maximum amount possible.
Based on data from the Department of Education, an estimated 38,772 nonpublic school
students will receive transportation services in the 2023-2024 school year. Assuming that the State
does not currently reimburse school districts for per pupil transportation costs in excess of $710
for any of these students and that a consortium would become responsible for providing
transportation services for each of these students, the bill would result in an increase in State costs
of $12.1 million. However, actual cost increases are likely to be more moderate, considering that
the State does reimburse some districts for some amount of per pupil costs. The OLS does not
have access to detailed information about actual per pupil transportation costs that would enable a
more precise estimate.
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A school district may experience a slight revenue increase to the extent that any nonpublic
school students residing in the district do not receive transportation services from the consortium
for the entire school year and the consortium is required to return a portion of the funding provided
for those students to the resident school district.
Section: Education
Analyst: Abigail Chambers
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.).