Bill
Bill > A2891
NJ A2891
NJ A2891Provides that salary and other costs associated with Commissioner of Education's appointment of State monitor and other staff under "School District Fiscal Accountability Act" will be paid by State.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill provides that the salary and other costs associated with a State monitor and any additional staff appointed by the Commissioner of Education under the provisions of the "School District Fiscal Accountability Act," P.L.2006, c.15 (C.18A:7A-54 et seq.), to provide direct oversight of a board of education's business operations and personnel matters will be paid by the State. Under current law, these costs are assumed by the school district. It is the sponsor's contention that the current State policy requiring school districts to assume the costs of a State appointed monitor can result in a perfect "Catch 22" for districts experiencing fiscal distress, forcing them to spend scarce resources to prove that they have scarce resources. A perfect example is that of the Jackson Township, New Jersey school district. Prior to the enactment of the State law that currently dictates school funding, commonly known as "S2," the district had no serious fiscal issues. Now, six years later, the district has lost approximately $20 million in State aid, resulting in the elimination of 215 positions, including both teachers and non-instructional staff. The district has had to request a $13.9 million loan from the State to balance its 2023-2024 budget. According to the sponsor, it is blatantly obvious to even a casual observer that the Jackson Township school district is experiencing dire fiscal stress, and the State's requirement that the district pay for a monitor hired by the State to prove this only compounds this problem. This bill squarely places the burden of payment for the monitor where it truly belongs, on the State.
AI Summary
This bill amends the "School District Fiscal Accountability Act" to shift the financial responsibility for a State-appointed monitor and any additional staff from the local school district to the State. Previously, under this act, if a school district exhibited significant fiscal distress, such as ending the fiscal year with a deficit or receiving a qualified audit opinion, the Commissioner of Education could appoint a State monitor to oversee the district's business operations and personnel matters. This bill's key provision is that the salary and other costs associated with this State monitor and their staff will now be paid by the State, rather than by the financially struggling school district itself, addressing a perceived "Catch 22" where districts in fiscal distress would have to expend scarce resources to pay for the oversight that proves their distress.
Committee Categories
Education
Sponsors (7)
Paul Kanitra (R)*,
Verlina Reynolds-Jackson (D)*,
Alex Sauickie (R)*,
Robert Clifton (R),
Gregory Myhre (R),
Brian Rumpf (R),
Erik Simonsen (R),
Last Action
Introduced, Referred to Assembly Education Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A2891 |
| BillText | https://pub.njleg.gov/Bills/2026/A3000/2891_I1.HTM |
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