Skip Navigation

Governor Signs Property Tax Legislation, including Property Tax Caps and “Super” County Superintendents

April 3, 2007

In a ceremony at the Trenton War Memorial, the Governor signed a series of bills emerging from the Special Session of the Legislature on Property Tax Reform. Among the bills were A-1, which provides a property tax cap and rebate, and A-4, which expands the power of county superintendents.

A-1 would provide residents with property tax credits, funded through part of the new revenue generated by last year’s sales tax increase. The bill would also create a property tax cap of 4% on revenue increases. Key points of the cap include:

The cap would apply to property tax revenue only, with automatic exemptions for enrollment increases, special education, health care costs, and decreases in state aid. The bill provides a formula for districts to calculate these exemptions.

  • During the first school budget year following enactment of the bill, the school district could go to its voters, as it does now, for approval to exceed the cap.
  • After the first year, until the cap expires in 2012, the school district would have a choice to request a waiver from the Commissioner or to go to the voters to exceed the cap. The bill provides a list of examples of “extraordinary costs” for a waiver, such as energy, insurance, special education, transportation, and others that the commissioner may determine. If the district chooses to go to the voters, approval by at least 60% of the voters would be necessary to exceed the cap.

The provisions of the cap in A-1 will automatically expire in 2012 absent reauthorization by the Legislature.

The other bill, A-4, was part of the “CORE” Reform Plan proposed by the Assembly Speaker.  Under the bill, new “executive” county superintendent would be appointed by the Governor, with the advice and consent of the Senate. The new powers and duties include:

Promoting administrative and operational efficiencies and cost savings

  • Recommending that certain districts consolidate “administrative services” with other districts
  • Eliminating unnecessary state education mandates and non-operating school districts
  • Presenting to the commissioner a school district consolidation plan within three years for all non K-12 districts, to be voted on at a special school election
  • Promoting coordination and regionalization of pupil transportation services
  • Reviewing and approving all employment contracts for superintendents, assistant superintendents and school business administrators
  • Requesting a forensic audit for a school district, if necessary
  • Disapproving a portion of any school budget if it includes “excessive non-instructional expenses,” subject to an appeals process to be created by the commissioner
  • Permitting a separate proposal for additional funds to the voters only if certain criteria documenting efforts at sharing services are met
  • Promoting cooperative purchasing of textbooks and other instructional materials
  • Assessing the types and capacities of district special education programs, assess the use of out-of-district programs, and work to increase in-district special education programs and sharing services, and the use of inclusive education

Additionally, the bill has language ensuring that nothing would contravene or modify collective bargaining agreements, restrict the scope of negotiations, or require an employer to use subcontracting. Under the provision of A-4 creating the revised duties of county superintendent, the Commissioner may file implementing regulations for a period not to exceed 12 months. Afterwards, the State Board of Education must promulgate regulations to implement the bill.

Click here for further information or to contact our Government Relations Department

Advocacy & Government Relations News Archive

NJPSA News Archive