Bill > A1127

Introduced Session

This bill establishes a Subaccount for School Funding Protection in the property tax relief fund to serve as a "rainy day fund" for schools if property tax relief fund revenue were to decline. The State Treasurer is required to credit, on or before December 31 annually, not less than 50 percent of resources deposited into the property tax relief fund in excess of the amount certified by the Governor. Balances less than $2,000,000,000 in the Subaccount for School Funding Protection may only be appropriated by the Legislature: 1) if anticipated Property Tax Relief Fund resources are estimated to be less than the Governor's certification; 2) to offset Property Tax Relief Fund resource declines instead of increasing, or modifying to increase, the gross income tax and sales and use tax, which is prohibited unless property tax relief fund resources decline by more than two percent; or 3) for meeting the costs of any emergency identified by the Governor that is within the purposes of the Property Tax Relief Fund. Excluding an emergency, balances in the Subaccount for School Funding Protection in excess of $2,000,000,000 may be appropriated for the purposes of the Property Tax Relief Fund. It is the sponsor's intent to prevent a decrease in State aid to schools if a recession or other economic emergency led to a decrease in revenue dedicated to the Property Tax Relief Fund. The Property Tax Relief Fund is the primary source for school funding and is the constitutionally required repository of revenue from the New Jersey gross income tax.

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John DiMaio (R)*,  Vicky Flynn (R),  Greg McGuckin (R), 

Introduced, Referred to Assembly Education Committee (on 01/09/2024)

Official Document