FISCALYEAR 2021-2022 - New Jersey Legislature
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FISCAL YEAR 2021-2022
A N A LY S I S O F T H E N E W J E R S E Y B U D G E T
DEPARTMENT OF
EDUCATION
Prepared by the
New Jersey Legislature
c e ooff L E G I S L AT I V E S E R V I C E S
O f f iice
April 2021NEW JERSEY STATE LEGISLATURE
S E N AT E B U D G E T A N D A P P R O P R I AT I O N S C O M M I T T E E
Paul A. Sarlo (D), 36th District (Parts of Bergen and Passaic), Chair
Sandra B. Cunningham (D), 31st District (Part of Hudson), Vice-Chair
Dawn Marie Addiego (D), 8th District (Parts of Atlantic, Burlington and Camden)
Nilsa Cruz-Perez (D), 5th District (Parts of Camden and Gloucester)
Patrick J. Diegnan, Jr. (D), 18th District (Part of Middlesex)
Linda R. Greenstein (D), 14th District (Parts of Mercer and Middlesex)
Declan J. O’Scanlon, Jr. (R), 13th District (Part of Monmouth)
Steven V. Oroho (R), 24th District (All of Sussex, and parts of Morris and Warren)
M. Teresa Ruiz (D), 29th District (Part of Essex)
Troy Singleton (D), 7th District (Part of Burlington)
Michael L. Testa, Jr. (R), 1st District (All of Cape May, parts of Atlantic and Cumberland)
Samuel D. Thompson (R), 12th District (Parts of Burlington, Middlesex, Monmouth and Ocean)
G E N E R A L A S S E M B LY B U D G E T C O M M I T T E E
Eliana Pintor Marin (D), 29th District (Part of Essex), Chair
John J. Burzichelli (D), 3rd District (All of Salem, parts of Cumberland and Gloucester), Vice-Chair
Daniel R. Benson (D), 14th District (Parts of Mercer and Middlesex)
Robert D. Clifton (R), 12th District (Parts of Burlington, Middlesex, Monmouth and Ocean)
Serena DiMaso (R), 13th District (Part of Monmouth)
Gordon M. Johnson (D), 37th District (Part of Bergen)
John F. McKeon (D), 27th District (Parts of Essex and Morris)
Nancy F. Muñoz (R), 21st District (Parts of Morris, Somerset and Union)
Carol A. Murphy (D), 7th District (Part of Burlington)
Verlina Reynolds-Jackson (D), 15th District (Parts of Hunterdon and Mercer)
William W. Spearman (D), 5th District (Parts of Camden and Gloucester)
Benjie E. Wimberly (D), 35th District (Parts of Bergen and Passaic)
Harold J. “Hal” Wirths (R), 24th District (All of Sussex, and parts of Morris and Warren)
O F F I C E O F L E G I S L AT I V E S E R V I C E S
Thomas Koenig, Legislative Budget and Finance Officer
Vacant, Assistant Legislative Budget and Finance Officer
Marvin W. Jiggetts, Director, Central Staff
Robert A. Melcher, Section Chief, Education Section
This report was prepared by the Education Section of the Office of Legislative Services
under the direction of the Legislative Budget and Finance Officer.
The primary author was Christopher Myles.
Questions or comments may be directed to the OLS Education Section
(Tel: 609-847-3850) or the Legislative Budget and Finance Office (Tel: 609-847-3105).DEPARTMENT OF EDUCATION
Budget Pages....... C-4, C-10, C-17, C-24, D-87 to D-113, H-1
The data presented in this Office of Legislative Services Budget Analysis reflect 12-month
fiscal years beginning on July 1 and ending on June 30 of the subsequent year.
Fiscal Summary ($000)
Adjusted Percentage
Expended Appropriation Recommended Change
FY 2020 FY 2021 FY 2022 2021-22
State Budgeted $14,694,752 $15,597,362 $17,605,479 12.9%
Federal Funds 1,239,298 943,711 966,672 2.4%
Other 52,451 22,527 27,664 22.8%
Grand Total $15,986,501 $16,563,600 $18,599,815 12.3%
Personnel Summary - Positions By Funding Source
Percentage
Actual Revised Funded Change
FY 2020 FY 2021 FY 2022 2021-22
State 368 356 390 9.6%
Federal 143 137 163 19.0%
Other 124 123 133 8.1%
Total Positions 635 616 686 11.4%
FY 2020 (as of December) and revised FY 2021 (as of January) personnel data reflect actual payroll counts. FY 2022 data reflect the
number of positions funded.
Link to Website: http://www.njleg.state.nj.us/legislativepub/finance.aspDepartment of Education FY 2021-2022
Highlights
The data presented in this Office of Legislative Services Budget Analysis reflect 12-month
fiscal years beginning on July 1 and ending on June 30 of the subsequent year.
• The FY 2022 Governor’s Budget proposes an increase of $1.73 billion in total State aid
to school districts compared to FY 2021. Of that increase, $962.0 million represents
enhanced employer contributions the State would make on behalf of school districts to
the Teachers’ Pension and Annuity Fund. Total State aid includes direct aid payments
to school districts and charter schools, as well as funding to school districts to pay for
goods and services that districts provide to nonpublic schools located in the districts. It
also includes payments made by the State on behalf of school districts.
• FY 2022 is the third year of the allocation of State school aid pursuant to P.L.2018,
c.67, commonly referred to as “S-2.” Under that law, a school district whose State aid
amount is deemed “overfunded” will experience State aid reductions of a certain
percentage in each school year from the 2019-2020 through 2024-2025 school years.
For the 2021-2022 school year, the reduction is 37 percent, and approximately 200
school districts will have a reduction in State aid.
Conversely, school districts whose State aid amount is deemed “underfunded” will
receive an increase in State aid. Each such school district will receive a proportionate
share of the sum of the total State aid reduction from “overfunded” districts and any
additional amount included in the appropriations act for the purpose of providing direct
State aid to school districts. For school year 2021-2022, the total State aid reduction
approximates $197.3 million, and the additional amount proposed by the Governor
$574.0 million.
• Proposed to be funded at $924.1 million, Preschool Education Aid would increase by
$49.9 million, or 5.7 percent above the FY 2021 adjusted appropriation. Up to $26
million of the growth would be dedicated to new full-day preschool programs. The
Administration anticipates assisting some 30 school districts with the $26 million.
• The FY 2022 Governor’s Budget recommends $200 million for SDA Project Funding
and $75 million for SDA Capital Maintenance and Emergent Projects. The FY 2022
Budget-in-Brief notes that the $200 million appropriation is intended to replace
borrowing for current SDA program projects. Meanwhile, the $75 million appropriation
will be directed to the capital maintenance and emergent needs grant programs to help
school districts undertake emergent facility and system repairs, such as replacing boilers,
electrical systems, and roofs.
• The recommended FY 2022 budget appropriates $300 million for Extraordinary Special
Education Costs Aid, representing an increase of $25 million or nine percent from the
FY 2021 Appropriations Act. The $275 million appropriated for this category of aid in
the current fiscal year funded approximately 62.5 percent of the total 2019-2020 school
year reimbursement to which applicant school districts would have been entitled under
current law.
2Department of Education FY 2021-2022
Highlights (Cont’d)
• The FY 2022 Governor’s Budget recommends $50 million for a new Stabilization Aid
program. This category of aid is to be allocated to school districts experiencing
reductions in State aid or otherwise confronting a structural budgetary imbalance. A
school district is required to provide a written plan explaining how it intends to fund
operations in future years in which the district does not receive Stabilization Aid.
• The FY 2022 Governor’s Budget proposes a new $10 million appropriation for Regional
School Consolidation Support. The funds are to be used to provide grants to school
districts for studies or implementation costs associated with school district
consolidations.
• The proposed budget includes $5 million to reimburse school entities for costs
associated with conducting lead testing of all water outlets. Entities under the
jurisdiction of the State Board of Education are required to test drinking water outlets for
the presence of lead every three years. The 2021-2022 school year is designated as a
Statewide testing year. The school entities are eligible for reimbursement of costs
associated with the lead testing.
• The State’s contribution to the Teachers’ Pension and Annuity Fund is proposed to
increase by $962.0 million, or 48.1 percent, above the FY 2021 adjusted appropriation.
This appropriation, in addition to $852.2 million in State Lottery revenue, represents 100
percent of the actuarially determined contribution necessary to fund the normal and
accrued pension liability.
• The recommended $1.15 billion appropriation for the School Construction and
Renovation Fund is $131.8 million higher in FY 2022 than in the current fiscal year.
The appropriation pays for Schools Development Authority debt service on bonds that
were issued to finance authority projects and operating expenditures. The recommended
FY 2022 appropriation is the Executive’s estimate of debt service on bonds issued and
outstanding, and additional issuances during FY 2022.
Background Papers:
Overview of Federal Elementary and Secondary School Emergency Relief (ESSER) Fund
Aid to New Jersey .............................................................................................. p. 33
Extraordinary Special Education Costs Aid in FY 2021 ....................................................... p. 35
3Department of Education FY 2021-2022
Fiscal and Personnel Summary
AGENCY FUNDING BY SOURCE OF FUNDS ($000)
Adj.
Expended Approp. Recom. Percentage Change
FY 2020 FY 2021 FY 2022 2020-22 2021-22
General Fund
Direct State Services $89,408 $89,405 $90,926 1.7% 1.7%
Grants-In-Aid 2,225 5,085 281,600 12,556.2% 5,437.9%
State Aid 385,956 2,639,684 3,313,598 758.5% 25.5%
Capital Construction 23 0 0 (100.0%) ----
Debt Service 0 0 0 ---- ----
Sub-Total $477,612 $2,734,174 $3,686,124 671.8% 34.8%
Property Tax Relief Fund
Direct State Services $0 $0 $0 ---- ----
Grants-In-Aid 0 500 500 ---- 0.0%
State Aid 14,217,140 12,862,688 13,918,855 (2.1%) 8.2%
Sub-Total $14,217,140 $12,863,188 $13,919,355 (2.1%) 8.2%
Casino Revenue Fund $0 $0 $0 ---- ----
Casino Control Fund $0 $0 $0 ---- ----
State Total $14,694,752 $15,597,362 $17,605,479 19.8% 12.9%
Federal Funds $1,239,298 $943,711 $966,672 (22.0%) 2.4%
Other Funds $52,451 $22,527 $27,664 (47.3%) 22.8%
Grand Total $15,986,501 $16,563,600 $18,599,815 16.3% 12.3%
PERSONNEL SUMMARY - POSITIONS BY FUNDING SOURCE
Actual Revised Funded Percentage Change
FY 2020 FY 2021 FY 2022 2020-22 2021-22
State 368 356 390 6.0% 9.6%
Federal 143 137 163 14.0% 19.0%
All Other 124 123 133 7.3% 8.1%
Total Positions 635 616 686 8.0% 11.4%
FY 2020 (as of December) and revised FY 2021 (as of January) personnel data reflect actual payroll counts. FY 2022 data reflect the
number of positions funded.
AFFIRMATIVE ACTION DATA
Total Minority Percentage 38.1% 38.0% N/A ---- ----
4Department of Education FY 2021-2022
Significant Changes/New Programs ($000)
State Aid
Total State aid includes direct aid payments to school districts and charter schools, as well as
funding to school districts to pay for goods and services that districts provide to nonpublic schools
located in the districts. It also includes payments made by the State on behalf of school districts,
including payments to the Teachers’ Pension and Annuity Fund, reimbursements made to school
districts for the employer’s share of FICA taxes for most school district employees, retired school
district employees’ health benefits, and debt service payments on bonds issued to finance the
State’s school construction program and bonds that financed payments to the Teachers’ Pension
and Annuity Fund. Compared to FY 2021, the amount of proposed State aid to school districts
in FY 2022 increases by $1.73 billion, from $15.50 billion to $17.23 billion. Of that total
increase, $962.0 million represents enhanced employer contributions the State would make on
behalf of school districts to the Teachers’ Pension and Annuity Fund.
General Fund, State Aid
Budget Page: D-93
Equalization Aid
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$3,248 $258,810 $2,512,271 $3,183,285 $671,014 26.7%
Property Tax Relief Fund, State Aid
Budget Page: D-93
Equalization Aid (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$6,336,778 $6,308,589 $4,138,471 $4,042,744 ($95,727) (2.3%)
Property Tax Relief Fund, State Aid
Budget Page: D-94
Special Education Categorical Aid (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$920,049 $942,156 $954,004 $1,006,264 $52,260 5.5%
Property Tax Relief Fund, State Aid
Budget Page: D-93
Security Aid (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$286,881 $286,959 $286,961 $287,205 $244 0.1%
5Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
Property Tax Relief Fund, State Aid
Budget Page: D-94
Transportation Aid (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$327,904 $320,604 $322,215 $322,388 $173 0.1%
Property Tax Relief Fund, State Aid
Budget Page: D-93
Adjustment Aid (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$487,299 $429,722 $334,850 $280,989 ($53,861) (16.1%)
The above tables represent the primary categories of State school formula aid. In all, the FY 2022
Governor’s Budget recommends increasing these categories by $574.0 million, or 6.7 percent,
from $8.5 billion in FY 2021 to $9.1 billion in FY 2022.
FY 2022 is the third year of the allocation of State school aid pursuant to P.L.2018, c.67,
commonly referred to as S-2. That law provides a mechanism for allocating State school aid from
the 2019-2020 through 2024-2025 school years. Under the law, a State aid differential is
calculated for each school district as the amount that the school district received in the prior
school year, not including educational adequacy aid and school choice aid, minus the sum of
equalization aid, special education categorical aid, security categorical aid, and transportation
aid as calculated under the school aid formula (P.L.2007, c.260), prior to applying the State aid
growth limit.
In the case of a school district in which the State aid differential is positive, the differential would
be reduced by a certain percentage each school year. In the 2021-2022 school year, that
reduction is 37 percent. Approximately 200 school districts will experience a reduction in State
aid in the 2021-2022 school year.
School districts in which the State aid differential is negative would receive an increase in State
aid. Specifically, each school district would receive a proportionate share of the sum of the total
State aid reduction from districts that have a positive State aid differential and any increase in
State aid included in the annual appropriations act for the purpose of providing direct State aid
to school districts. In the FY 2022 Governor’s Budget, some $197.3 million is being redistributed
from school districts that have a positive State aid differential and $574.0 million in additional
State aid is also distributed. Therefore, the amount of proposed FY 2022 State funds available
for State aid increases totals $771.3 million.
Two groups of districts are exempt from these reductions: 1) SDA (former Abbott) districts that
spend below adequacy and are located in a municipality in which the equalized total tax rate
exceeds the Statewide average; and 2) non-SDA districts that spend below adequacy by at least
10 percent and are located in a municipality in which the equalized total tax rate exceeds the
Statewide average by more than 10 percent. Under the FY 2022 proposed State aid notices,
three SDA districts (Millville City School District, East Orange School District, and Harrison Town
6Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
School District) and two non-SDA districts (Fairfield Township School District in Cumberland
County and South Amboy City School District) that otherwise would have experienced
reductions in aid are held harmless.
In the case of two other groups of districts, the reductions are limited: 1) in the case of an SDA
district that is spending above adequacy and is located in a municipality in which the equalized
total tax rate is greater than the Statewide average, the reduction will not exceed the amount by
which the district is spending above adequacy multiplied by the State aid reduction percentage
for that school year (37 percent in the 2021-2022 school year); and 2) in the case of a county
vocational school district, the district will receive Vocational Expansion Stabilization Aid to
ensure that the district’s State aid does not drop below what the district received in the 2017-
2018 school year. Two SDA districts (Pemberton Township School District and Keansburg Boro
School District) will experience limited reductions in State aid as described in this paragraph,
and seven county vocational school districts are proposed to receive Vocational Expansion
Stabilization Aid.
Property Tax Relief Fund, State Aid
Budget Page: D-93
Vocational Expansion Stabilization Aid (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $2,228 $5,647 $9,679 $4,032 71.4%
Vocational Expansion Stabilization Aid ensures that county vocational school districts receive no
less than the amount of State school aid a district received in the 2017-2018 school year. In FY
2022, seven county vocational school districts that otherwise would have experienced
reductions in State school aid pursuant to S-2 are proposed to receive this category of aid. The
FY 2022 allocation is as follows:
Vocational Expansion Stabilization Aid
County Vocational School District FY 2022 Recommended
Bergen County Vocational School District $1,717,118
Cape May Vocational School District $463,501
Hunterdon County Vocational School District $222,380
Monmouth County Vocational School District: $3,389,597
Ocean County Vocational School District $2,362,212
Somerset County Vocational School District $511,339
Sussex County Vocational School District $1,001,019
7Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
Property Tax Relief Fund, State Aid
Budget Page: D-93
Preschool Education Aid (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$731,428 $806,395 $874,247 $924,148 $49,901 5.7%
Under P.L.2007, c.260, school districts were to provide State-funded full-day preschool for three-
and four-year-old children who reside in the district. However, the State never appropriated
sufficient funds to allow for the expansion, and by the 2017-2018 school year only 35 school
districts had fully implemented preschool programs consistent with the department’s standards
(31 former Abbott districts and four districts that received approval from the Commissioner of
Education to expand their preschool programs in the 2008-2009 school year). Most of the
recommended FY 2022 appropriation, $639.0 million, supports the programs in these districts.
Under the recommended proposal, a total of 199 school districts would receive preschool
education aid in FY 2022.
A recommended FY 2022 language provision dedicates $26.0 million of the increase in
Preschool Education Aid to school districts to expand free access to full-day preschool in
accordance with certain preschool quality standards. The FY 2022 Budget-In-Brief indicates that
approximately 30 school districts would receive Preschool Education Aid pursuant to this
language provision.
In FY 2021, $10 million was dedicated toward preschool expansion. Ten school districts
received this aid in the amounts enumerated below. These school districts would receive a
combined $14.3 million in Preschool Education Aid under the FY 2022 recommended budget.
Preschool Expansion Aid Amount
School District FY 2021
Egg Harbor Township School District $2,835,866
North Arlington Boro School District $560,208
Fairview Boro School District $2,126,751
Lumberton School District $345,072
Clementon School District $302,242
Hampton Boro School District $338,675
Matawan-Aberdeen Regional $1,574,034
Seaside Heights School District $482,095
Quinton Township School District $349,506
Manville Boro School District $1,085,550
8Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
Property Tax Relief Fund, State Aid
Budget Page: D-94
Bridge Loan Interest and Approved Borrowing Cost (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$177 $186 $5,200 $200 ($5,000) (96.2%)
A school district may seek approval from the department to enter into short-term borrowing to
cover short-term losses in State aid revenue that may result from delays in June State school aid
payments. The State pays the approved borrowing costs on behalf of school districts that issue
promissory notes for this purpose. Under current law, school districts are to receive 20 State
school aid payments, two per month from September to June, over the course of the school year.
Since FY 2009, however, the final two State school aid payments in a given fiscal year have been
delayed until the subsequent fiscal year.
The FY 2022 Governor’s Budget recommends reverting the appropriation level for this program
to that included in prior appropriations acts. The FY 2021 adjusted appropriation of $5.2 million
was unusually high primarily due to additional delays in State aid payments in response to
budgetary uncertainty prompted by the COVID-19 pandemic. Specifically, the September 2020
Choice Aid payments and the September 22, 2020 State aid payments other than Choice Aid
were postponed. The State’s accounting system indicates that $387,629 has been expended
from this account in FY 2021 to date.
Property Tax Relief Fund, State Aid
Budget Page: D-93
Growth Savings – Payment Changes
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
($41,256) ($28,958) ($8,627) ($62,801) ($54,174) (628.0%)
Under current law, school districts are to receive a total of 20 State school aid payments, two per
month from September through June, over the course of the school year. Since FY 2009, the
final two payments have been delayed until the subsequent fiscal year. If the total amount of
State aid payable to school districts increases from one year to the next, this accounting maneuver
reduces the total amount that must be appropriated for State aid in that subsequent fiscal year, as
the two delayed payments from the prior year will be smaller than the other 18 payments that
will be made in the subsequent fiscal year. A larger increase in State aid payable to school
districts would yield a larger savings that may be deducted from the total State aid appropriation.
The larger savings included in the FY 2022 recommended budget therefore reflect a larger
increase in aid payable to school districts than the increase in the current fiscal year.
9Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
Property Tax Relief Fund, State Aid
Budget Page: D-94
Charter School Aid (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$36,752
$49,695 $39,038 $24,023 ($33,568) (58.3%)
S $20,839
The recommended decrease is due in part to a reduction in the amount of State aid necessary to
implement hold harmless provisions for charter schools. As State aid to school districts increases,
the amount of the payments made to a charter school by a school district will also increase,
thereby reducing the need for a hold harmless State appropriation.
The decrease is also due to the elimination of a FY 2021 supplemental appropriation of $20.8
million. The supplemental appropriation was made because the original program appropriation
did not properly account for lower overall State aid appropriations to school districts than
projected at the time of determining the appropriation for Charter School Aid.
Traditionally, the State provides direct payments to charter schools for two purposes. First, in
the case of a student who enrolls in a charter school without having been included in the
projected resident enrollment of a school district for that year (for example, a student who leaves
a nonpublic school to enroll in a charter school), the State makes the payment for that student to
the charter school, rather than the school district, in that student’s first year of enrollment.
Second, the State aid notices for charter schools include certain hold harmless provisions. The
first, which only applies to charter schools that were in operation during the 2007-2008 school
year, ensures that the total revenue that a charter school receives is no less, either on a total or
per pupil basis, than the amount of revenue that the school received in the 2007-2008 school
year. The second hold harmless provision guarantees that a charter school’s revenue, both on a
total and per pupil basis, will not be less than the amount received in the 2018-2019 school year.
The FY 2022 Governor’s Budget also includes proposed language requiring that no charter
school receive less total support from the State and resident school district than the amount
received in the 2020-2021 school year, both on a total revenue and per pupil basis.
Property Tax Relief Fund, State Aid
Budget Page: D-94
Extraordinary Special Education Costs Aid (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$194,990 $249,998 $275,000 $300,000 $25,000 9.1%
School districts may apply for reimbursement for certain costs of educating special education
students when the costs exceed $40,000 if the student is educated in a public school program or
$55,000 if the student attends an approved private school for students with disabilities. In the
case of a student educated in a public school program with other students who do not have
10Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
disabilities, a district would receive aid equal to 90 percent of the amount of the excess cost. In
the case of a student educated in a public school program with only students with disabilities or
in an approved private school for students with disabilities, a district would receive aid equal to
75 percent of excess costs.
Over recent years, a sufficient level of funding has not been appropriated to support all of the
costs eligible for reimbursement under Extraordinary Special Education Costs Aid. The $275
million FY 2021 appropriation reimbursed school districts for approximately 62.5 percent of total
eligible costs which were incurred in the 2019-2020 school year. The FY 2022 recommended
budget proposes $300 million for Extraordinary Special Education Costs Aid, representing a $25
million over the FY 2021 adjusted appropriation. The FY 2022 appropriation would support
costs incurred during the 2020-2021 school year. The proposed appropriation level would have
supported 68.2 percent of the total 2019-2020 eligible costs.
Property Tax Relief Fund, State Aid
Budget Page: D-94
School Security Compliance Funding (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $4,030 $0 ($4,030) (100.0%)
Under P.L.2019, c.33, commonly referred to as “Alyssa’s Law”, each public elementary and
secondary school building is required to be equipped with at least one panic alarm for use in a
school security emergency. A school district may equip its elementary and secondary school
buildings with an alternative emergency mechanism that is approved by the Department of
Education. The law provides that a portion of the proceeds of the bonds authorized to be issued
to fund school security under the “Securing Our Children’s Future Bond Act,” P.L.2018, c.119,
will fund the full cost of the panic alarms or the alternative emergency mechanisms. A school
district that installed a panic alarm or alternative emergency mechanism prior to the effective
date of Alyssa’s Law may apply to the department for reimbursement of those costs.
The FY 2021 Appropriations Act included $4.0 million in School Security Compliance Funding
for the purpose of awarding grants to school districts, charter schools, renaissance school
projects, and school districts with standalone preschool facilities to equip school buildings with
a panic alarm or alternative emergency mechanism. The award was also available to reimburse
districts and schools for costs previously incurred for equipping a school building after January
1, 2016. Districts and schools that were compliant with the provisions of Alyssa’s Law were also
eligible to apply for this funding to complete other eligible school security projects.
As of March 31, 2021, the FY 2021 appropriation has been unexpended. Although the Governor
does not recommend an FY 2022 appropriation for this program, a proposed language provision
would provide carryforward authority for unexpended FY 2021 account balances.
11Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
Property Tax Relief Fund, State Aid
Budget Page: D-94
Preschool Facilities Lead Remediation (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $1,000 $0 ($1,000) (100.0%)
The FY 2021 Appropriations Act included $1.0 million for Preschool Facilities Lead Remediation.
A language provision required the department to award grants to school districts for water
infrastructure improvement in schools serving solely preschool students. Eligibility was to be
based on eligibility requirements for water infrastructure improvement projects under P.L.2018,
c.119 and its implementing regulations. Eligible work for school district water improvement
grants generally include: 1) improvements to drinking water outlets with a detectable level of
lead or other contaminants; and 2) whole system remediation.
As of March 31, 2021, the FY 2021 appropriation has been unexpended. Although the Governor
does not recommend an additional appropriation for this program in FY 2022, proposed
language would provide carryforward authority for unexpended FY 2021 account balances.
Property Tax Relief Fund, State Aid
Budget Page: D-94
Emergency Fund (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$6,815 $15,050 S $7,063 $0 ($7,063) (100.0%)
FY 2021 Appropriations Act language provided for a supplemental appropriation to the
Emergency Fund so that the department could provide financial assistance to school districts that
demonstrate financial need. A supplemental appropriation of $7.0 million was made and
distributed as emergency aid to the Camden City School District. The FY 2022 Governor’s
Budget recommends the continuation of the language provision that authorizes a supplemental
appropriation to the Emergency Fund.
Property Tax Relief Fund, State Aid
Budget Page: D-94
Stabilization Aid (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $50,000 $50,000 -
The FY 2022 recommended budget includes $50 million in funding for Stabilization Aid. A
proposed language provision stipulates that the amounts appropriated for Stabilization Aid would
12Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
not be allocated unless a school district: 1) experiences a reduction in State aid or otherwise
confronts a structural budgetary imbalance; and 2) the district provides a written plan explaining
how it intends to fund operations in future years in which the district does not receive
Stabilization Aid. Approximately 200 school districts are subject to State aid reductions in the
2021-2022 school year.
General Fund, State Aid
Budget Page: D-94
Education Rescue Grant Program
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $5,000 $0 ($5,000) (100.0%)
The Legislature added a $5 million appropriation for the Education Rescue Grant Program to the
FY 2021 Appropriations Act. Grants were to be awarded to school districts to support the costs
of rehiring or retaining teaching staff members or of hiring other similarly qualified teaching staff
members. Recipient school districts were to use their grants for the salaries of such teaching staff
members. The Governor does not recommend renewing the program in FY 2022. However,
newly proposed language carries unexpended FY 2021 balances forward into FY 2022.
Property Tax Relief Fund, State Aid
Budget Page: D-94
Regional School Consolidation Support (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $10,000 $10,000 -
The FY 2022 Governor’s Budget recommends a new $10 million appropriation for Regional
School Consolidation Support to provide grants to school districts for studies or implementation
costs associated with school district consolidations. Grants would be awarded pursuant to an
application process administered by the Commissioner of Education.
13Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
Property Tax Relief Fund, State Aid
Budget Page: D-94
Lead Testing for Schools (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $5,000 $5,000 -
The FY 2022 Governor’s Budget proposes a new $5.0 million appropriation to reimburse school
districts for the costs of testing school drinking water for lead. Funding was last appropriated for
this purpose in FY 2018 when $10 million was made available of which only $3.3 million was
expended.
State Board of Education regulations require that entities under its jurisdiction test for the
presence of lead at all water outlets that are used for drinking or food preparation. Entities under
the State board’s jurisdiction include: public school districts, charter schools, renaissance
schools, jointure commissions, educational services commissions, approved private schools for
students with disabilities, State-funded early childcare facilities, and receiving schools. The tests
are required to recur on a three-year cycle beginning with the 2021-2022 school year and cost
reimbursements for the testing would be available for testing that occurs after July 1, 2021.
Property Tax Relief Fund, State Aid
Crossroad Middle School, South Brunswick School District Budget Page: D-94
Building Systems Upgrade (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $1,000 $1,000 -
Property Tax Relief Fund, State Aid
Budget Page: D-94
Innovation Academy – Hillside Township School District (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $2,400 $2,400 -
Property Tax Relief Fund, State Aid
Budget Page: D-94
Wenonah School District – Floor Replacement (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $175 $0 ($175) (100.0%)
The FY 2022 Governor’s Budget recommends a total of $3.4 million in State aid to specific school
districts, namely the South Brunswick School District for building systems upgrades and the
14Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
Hillside Township School District for its Innovation Academy. These two purposes had not been
previously incorporated in prior appropriations acts.
Meanwhile, the FY 2022 Governor’s Budget eliminates a $175,000 appropriation included in
the FY 2021 Appropriations Act for Wenonah School District – Floor Replacement (PTRF). The
Legislature inserted this appropriation into the FY 2021 Appropriations Act.
Property Tax Relief Fund, State Aid
Budget Page: D-94
School Building Aid (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$34,255 $26,274 $21,331 $20,232 ($1,099) (5.2%)
Property Tax Relief Fund, State Aid
Budget Page: D-94
School Construction Debt Service Aid (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$95,118 $100,465 $110,111 $115,691 $5,580 5.1%
A school district may receive State aid to defray the cost of debt service payments made on bonds
that were issued to pay for school facilities projects. In the case of school facilities projects that
were approved prior to the effective date of P.L.2000, c.72, debt service payments are supported
through appropriations made to the School Building Aid line. The recommended appropriation
is declining as the outstanding debt continues to be retired.
For school facilities projects approved after the effective date of P.L.2000, c.72, debt service aid
to school districts is paid from the School Construction Debt Service Aid line. The proposed
increase reflects additional school district bond issuances for school facilities projects.
Property Tax Relief Fund, State Aid
Budget Page: D-94
School Construction & Renovation Fund (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$1,042,268 $996,098 $1,014,788 $1,146,577 $131,789 13.0%
The Schools Development Authority (SDA) is responsible for undertaking the school facilities
projects in the 31 SDA (former Abbott) districts, and the State is responsible for 100 percent of
the eligible costs. Additionally, a school district that is not an SDA district may receive, in lieu
of debt service aid, a one-time grant to partially fund the costs of a school facilities project. The
15Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
costs of these grants and the projects in the SDA districts are funded from the proceeds of the
bonds issued by the Economic Development Authority. Appropriations to the School
Construction and Renovation Fund are used to make the principal and interest payments due
during the fiscal year. The recommended FY 2022 appropriation is the Executive’s estimate of
debt service on bonds issued and outstanding, and additional issuances during FY 2022.
General Fund, State Aid
Budget Page: D-94
Nonpublic Technology Initiative
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$5,115 $5,076 $0 $5,400 $5,400 -
School districts use Nonpublic Technology Initiative funding to purchase technological hardware
and software for, and loan the same to, nonpublic schools or to provide professional
development to improve nonpublic school teachers’ technology skills.
The FY 2021 Appropriations Act did not include State funding for this program because $5.0
million was instead made available out of the State’s $2.4 billion Coronavirus Relief Fund
allocation under the federal Coronavirus Aid, Relief, and Economic Support (CARES) Act of 2020.
The $5.0 million allocation of federal funds was to help nonpublic schools purchase necessary
online instruction equipment. In response to FY 2021 legislative budget questions, the
department indicated that school districts would receive $43.50 per pupil enrolled in a
nonpublic school located in the district that may be used for the purchase of one-to-one devices,
including laptops and hotspots.
The FY 2022 Governor’s Budget proposes $5.4 million in State funds for the Nonpublic
Technology Initiative at a $36 per pupil rate.
Property Tax Relief Fund, State Aid
Budget Page: D-107
Teachers’ Pension and Annuity Fund (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$1,111,690 $1,435,009 $2,000,278 $2,962,249 $961,971 48.1%
The State makes the employer contributions to the Teachers’ Pension and Annuity Fund on behalf
of school districts. The recommended FY 2022 appropriation represents 100 percent of the
actuarially determined contribution to fund the normal and accrued pension liability of the fund,
net of an offset of $852.2 million from the transfer of State Lottery revenue to the fund. In FY
2021, the State makes 80 percent of the actuarially determined contribution, net of the lottery
offset, with the unfunded actuarially determined contribution amount deferred to the future.
16Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
Property Tax Relief Fund, State Aid
Teachers’ Pension and Annuity Fund – Post Retirement Medical Budget Page: D-107
(PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$888,426
$969,382 $822,124 $915,948 ($5,255) (0.6%)
S $32,777
This line pays for post-retirement medical benefits for local education early and Medicare
retirees. The FY 2021 Adjusted Appropriation includes a supplemental appropriation of $32.8
million, which appears to have been necessitated by unanticipated expenditures related to the
COVID-19 pandemic.
According to Aon, the Plan Year 2020 (second half of FY 2020 and first half of FY 2021) estimated
net increase in School Employee Health Benefit Plan costs of COVID-19 claims is $35.1
million. This net amount is comprised of total increases in COVID-19 claims of $56.6 million
offset by a reduction of $21.5 million in claims costs from delayed procedures and office visits
because of the public health emergency. Most of these claims accrue to the Teachers’ Pension
and Annuity Fund – Post-Retirement Medical account, while a small portion of the claims accrue
to the Post-Retirement Other Than TPAF account. Plan Year 2021 (second half of FY 2021 and
first half of 2022) estimated costs do not include any adjustment for the impact of COVID-19.
The FY 2022 Governor’s Budget growth assumption, excluding the supplemental appropriation,
for the Teachers’ Pension and Annuity Fund - Post Retirement Medical account is 3.1 percent, or
$27.5 million. This growth rate is lower due to savings from plan design changes under
P.L.2020, c.44. Without these savings, the increase would approximate 6.5 percent.
Property Tax Relief Fund, State Aid
Teachers’ Pension and Annuity Fund – Non-contributory Budget Page: D-107
Insurance (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$42,856
$43,226 $41,137 $41,981 ($18,202) (30.2%)
S $17,327
The State pays the premium for life insurance of school district employees who are members of
the Teachers’ Pension and Annuity Fund. The recommended decrease in the FY 2022
appropriation for Teachers’ Pension and Annuity Fund – Non-contributory Insurance largely
reflects the elimination of an FY 2021 supplemental appropriation of $17.3 million. According
to budget documentation, the FY 2021 supplemental appropriation was necessary because of
increased expenditure demands.
17Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
Property Tax Relief Fund, State Aid
Budget Page: D-108
Debt Service on Pension Obligation Bonds (PTRF)
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$243,809 $261,604 $250,622 $268,800 $18,178 7.3%
Pension Obligation Bonds proceeds funded the accrued pension liability in the State’s various
pension systems existing in 1997, including the Teachers’ Pension and Annuity Fund. This line
is used to make principal and interest payments due that are attributable to the payments made
into the Teachers’ Pension and Annuity Fund from these bond proceeds. The increase is
consistent with the bonds’ debt service schedule.
Grants-in-Aid
General Fund, Grants-in-Aid
Budget Page: D-92
SDA Capital Maintenance and Emergent Projects
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $75,000 $75,000 -
General Fund, Grants-in-Aid
Budget Page: D-92
SDA Project Funding, Direct Appropriation
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $200,000 $200,000 -
The Schools Development Authority (SDA) is responsible for fully managing and funding the
new construction, modernization, and renovation of school facilities projects in SDA (former
Abbott) districts. The authority is responsible for both: 1) capital projects, which are new schools,
major renovations, and rehabilitation projects in SDA districts; and 2) emergent projects, which
are projects deemed necessary in those districts due to potential health and safety issues. In
addition, the authority makes certain grants available to non-SDA districts for facilities projects
that address health and safety issues and other critical needs, contingent on local approval of the
remaining school district’s share of the total needed costs.
Authority operating costs are generally funded through bond proceeds. Current law provides
$12.5 billion in bonding authority. On March 23, 2021, the authority reported to the Joint
Committee on the Public Schools that about $11.85 billion of its bonding authorization has been
issued, and that approximately $750 million in authorized bonding capacity remains.
18Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
Although the State budget does not generally support the SDA, apart from debt service payments,
the FY 2022 Governor’s Budget proposes $75 million for SDA Capital Maintenance and
Emergent Projects. The appropriation would help SDA and non-SDA districts undertake
emergent facility and systems repairs, such as replacing boilers, electrical systems, and roofs.
In addition, the FY 2022 Governor’s Budget recommends a direct appropriation of $200 million
to the authority to fund current projects. Doing so would delay the depletion of the $12.5 billion
bonding authority at which point the authority would have no more resources to fund projects
and its operating expenses. The Administration states that the appropriation would allow the
authority to finance projects for one additional year before reaching the bonding cap than would
otherwise be the case. According to the minutes of the SDA Board of Directors’ meeting from
March 3, 2021, the State was initially expecting to bond for between $300 million and $400
million for the upcoming fiscal year; however, it now will only be pursuing $150 million in
bonding because of the recommended $200 million direct appropriation.
General Fund, Grants-in-Aid
Budget Page: D-106
K-12 Computer Science Education Initiative
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$2,000 $0 $800 $2,000 $1,200 150.0%
The K-12 Computer Science Education Initiative is a grant program to help school districts offer
college-level computer science courses and support the professional development of K-12
computer science teachers. While the FY 2021 appropriation amount is currently unexpended,
the department published a Notice of Grant Opportunity to award three grants totaling $799,995
to institutions of higher education to establish computer science hubs that will provide
professional learning to educators and promote the expansion of computer science education at
partner school districts. The State accounting system indicates that the $2 million FY 2020
appropriation for this program was placed in budget reserve in anticipation of a year-end lapse
into the State General Fund.
General Fund, Grants-in-Aid
Budget Page: D-107
STEM Dual Enrollment and Early College High Schools
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$400 $0 $400 $0 ($400) (100.0%)
The FY 2022 Governor’s Budget recommends the elimination of funding for STEM Dual
Enrollment and Early College High Schools. In FY 2021, $400,000 was appropriated for the
program and language required the department to continue efforts to develop and implement a
19Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
pilot program that integrates and aligns appropriate high school coursework with appropriate
college courses. The department was required to establish written eligibility criteria for the
selection of participating schools as well as program goals and requirements for the 2020-2021
school year.
The FY 2021 appropriation for this program is currently unexpended. However, the department
awarded a $200,000 grant to the Trenton Public School District to develop and implement a
model that extends high school to grades nine to 14 with the desired outcome of students
graduating with a high school diploma and an associate’s degree. A separate Notice of Grant
Opportunity makes $200,000 available to one yet-to-be-determined school district that currently
operates an existing early college high school program. The goal of the grants is to support
schools’ provision of services and early college programs to students in underrepresented
subgroups.
General Fund, Grants-in-Aid
Budget Page: D-107
Bard High School Early College Newark
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $250 $250 -
General Fund, Grants-in-Aid
Budget Page: D-107
W.E.B. Du Bois Scholars Institute
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $75 $75 -
General Fund, Grants-in-Aid
Budget Page: D-107
NAN Newark Tech World
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $250 $250 -
General Fund, Grants-in-Aid
Budget Page: D-107
New Jersey STEM Innovation Fellowship
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $100 $100 -
The FY 2022 Governor’s Budget recommends the above new Grants-in-Aid appropriations,
totaling $675,000 for various educational institutions and organizations.
20Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
Direct State Services
General Fund, Direct State Services
Budget Page: D-106
Special Purpose: K-12 Education Workforce Diversity Programs
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $550 $550 -
The FY 2022 Governor’s Budget proposes a new $550,000 appropriation for K-12 Education
Workforce Diversity Programs. An accompanying language provision requires that the
appropriation be used to support programs to increase and retain diversity in the education
workforce and programs to provide mentorship to minority teachers and candidates for teacher
preparation. The language provision references P.L.2019, c.102. This law established a pilot
program to recruit male residents who are from disadvantaged or minority backgrounds to enroll
in the alternate route teacher preparation program and to match them with teaching opportunities
in an underperforming school. The alternate route teacher preparation program is a non-
traditional teacher preparation program designed for those who have not completed a formal
teacher preparation program at an accredited college or university, but who wish to obtain the
necessary training to become a certified teacher. The department is required to select six
underperforming schools to participate in the pilot program.
General Fund, Direct State Services
Budget Page: D-106
Special Purpose: New Jersey Amistad Commission
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $234 $1,000 $766 327.4%
The Amistad Commission coordinates educational and other programs on slavery in America
and African-American history. The Governor’s Budget proposes an FY 2022 appropriation of $1
million for the commission, an increase of $766,000 over the FY 2021 adjusted appropriation.
This increase may reflect the recent enactment of P.L.2020, c.153. The law includes provisions
explicitly requiring the commission to appoint an executive director and to approve all Amistad
Commission personnel job descriptions and all persons recommended for employment by the
executive director.
21Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
General Fund, Direct State Services
Special Purpose: New Jersey Commission on Latino and Hispanic Budget Page: D-106
Heritage
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $100 $100 -
The FY 2022 Governor’s Budget recommends $100,000 for the New Jersey Commission on
Latino and Hispanic Heritage. Created pursuant to P.L.2019, c.321, the commission is
responsible for surveying, designing, encouraging, and promoting the implementation of Latinx
and Hispanic cultural and educational programs across the State.
General Fund, Direct State Services
Budget Page:D-106
Special Purpose: Learning Loss Program
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$0 $0 $0 $250 $250 -
The FY 2022 Governor’s Budget proposes a new $250,000 Learning Loss Program. According
to the FY 2022 Budget-in-Brief, the Department of Education will hire full-time employees to
address longer-term learning loss and mental health issues. Budget documentation indicates that
two new, full-time equivalent positions will be created under this program. The total salary costs
of these two positons are estimated at $174,000.
All Other Funds
All Other Funds
Budget Page: D-95
Miscellaneous Grants-In-Aid
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$30,327 $36,255 $10,835 $16,835 $6,000 55.4%
The increase stems exclusively from enhanced anticipated repayments by school districts of
previous aid received as School District Deficit Relief. Under the program, a school district may
receive an advance State aid payment if doing so is necessary to ensure the provision of a
thorough and efficient education. The advance payment would be repaid over a period not to
exceed 10 years through an automatic reduction in the State aid otherwise due to the district.
22Department of Education FY 2021-2022
Significant Changes/New Programs ($000) (Cont’d)
Federal Funds
Federal Funds
Budget Page: D-102
Career Readiness and Technical Education
FY 2019 FY 2020 FY 2021 FY 2022 Change
Expended Expended Adj. Approp. Recomm. FY 2021 – FY 2022
$19,631 $26,095 $25,774 $39,200 $13,426 52.1%
This growth is almost exclusively attributable to an anticipated $13.6 million increase in federal
funds for the State’s Basic Grant for Career and Technical Education under the federal Carl D.
Perkins Career and Technical Education Act. State Basic Grants are allocated for the
development and implementation of career and technical education programs. The State
Department of Education is responsible for administering these grants and may not spend more
than five percent of its grant or $250,000, whichever is greater, on administrative activities and
not more than 10 percent on State leadership activities intended to improve career and technical
education.
23Department of Education FY 2021-2022
Significant Language Changes
Schools Development Authority Appropriations for Capital Maintenance, Emergent
Projects, and Funding of Current Projects
2021 Handbook: N/A
Addition
2022 Budget: p. D-95
Notwithstanding the provisions of any law or regulation to the contrary, the amount
hereinabove appropriated for SDA Capital Maintenance and Emergent Projects shall be
provided to the School Development Authority to support emergent needs and capital
maintenance in school districts, subject to the approval of the Director of the Division of
Budget and Accounting.
Notwithstanding the provisions of any law or regulation to the contrary, the amount
hereinabove appropriated for SDA Project Funding, Direct Appropriation shall be provided to
the Schools Development Authority to support school facilities projects in SDA school
districts, subject to the approval of the Director of the Division of Budget and Accounting.
Explanation
Although the State does not generally provide operating support to the Schools
Development Authority (SDA), the FY 2022 Governor’s Budget newly proposes $75
million for SDA Capital Maintenance and Emergent Projects and $200 million for
SDA Project Funding, Direct Appropriation. Two newly proposed language
provisions stipulate the uses of the two appropriations. As noted in the FY 2022
Budget-in-Brief, the $75 million appropriation for SDA Capital Maintenance and
Emergent Projects would help the 31 SDA districts and non-SDA districts undertake
emergent facility and systems repairs, such as replacing boilers, electrical systems,
and roofs. The SDA fully funds emergent projects in the 31 SDA districts.
The $200 million proposed appropriation for SDA Project Funding, Direct
Appropriation would be dedicated to current projects. Doing so would delay the
depletion of the authority’s $12.5 billion bonding authority – the Administration
states by one year -- at which point the authority would have no more resources to
fund projects and its operating expenses. According to the minutes of the SDA
Board of Directors’ meeting from March 3, 2021, the State was initially expecting
to bond for between $300 million and $400 million for the upcoming fiscal year;
however, it now will only be pursuing $150 million in bonding because of the
recommended $200 million direct appropriation.
EXPLANATION: FY 2021 language not recommended for FY 2022 denoted by strikethrough.
Recommended FY 2022 language that did not appear in FY 2021 denoted by underlining.
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