Directs Commissioner of Education to establish criteria and make recommendations on designation of school districts as SDA districts.

S3598

SENATE, No. 3598

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� ANTHONY M. BUCCO

District 25 (Morris and Passaic)

SYNOPSIS

���� Directs Commissioner of Education to establish
criteria and make recommendations on designation of school districts as SDA
districts.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning SDA districts and amending and supplementing
P.L.2000, c.72.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 3 of P.L.2000,
c.72 (C.18A:7G-3) is amended to read as follows:

���� 3.��� As used in sections 1
through 30 and 57 through 71 of P.L.2000, c.72 (C.18A:7G-1 et al.), sections 14
through 17 of P.L.2007, c.137 (C.18A:7G-45 through C.18A:7G-48), and sections
5, 7, 12, 15, and 19 through 21 of P.L.2023, c.311 (C.18A:7G-5b et al.), unless
the context clearly requires a different meaning:

���� "Area cost
allowance" means $138 per square foot for the school year 2000-2001 and
shall be inflated by an appropriate cost index for the 2001-2002 school year.�
For the 2002-2003 school year and subsequent school years, the area cost
allowance shall be established by the commissioner pursuant to subsection h. of
section 4 of P.L.2000, c.72 (C.18A:7G-4).� The area cost allowance used in
determining preliminary eligible costs of school facilities projects shall be
that of the year of application for approval of the project;

���� "Capital maintenance
project" means a school facilities project intended to extend the useful
life of a school facility, including up-grades and replacements of building
systems, such as structure, enclosure, mechanical, plumbing and electrical
systems;

���� "Commissioner" means
the Commissioner of Education;

���� "Core curriculum content
standards" means the standards established pursuant to the provisions of
subsection a. of section 4 of P.L.2007, c.260 (C.18A:7F-46);

���� "Cost index" means
the average annual increase, expressed as a decimal, in actual construction
cost factors for the New York City and Philadelphia areas during the second
fiscal year preceding the budget year as determined pursuant to regulations
promulgated by the development authority pursuant to section 26 of P.L.2000,
c.72 (C.18A:7G-26);

���� "Debt service" means
and includes payments of principal and interest upon school bonds issued to
finance the acquisition of school sites and the purchase or construction of
school facilities, additions to school facilities, or the reconstruction,
remodeling, alteration, modernization, renovation or repair of school
facilities, including furnishings, equipment, architect fees and the costs of
issuance of such obligations and shall include payments of principal and
interest upon school bonds heretofore issued to fund or refund such
obligations, and upon municipal bonds and other obligations which the
commissioner approves as having been issued for such purposes. Debt service
pursuant to the provisions of P.L.1978, c.74 (C.18A:58-33.22 et seq.),
P.L.1971, c.10 (C.18A:58-33.6 et seq.) and P.L.1968, c.177 (C.18A:58-33.2 et
seq.) is excluded;

���� "Demonstration
project" means a school facilities project selected by the State Treasurer
for construction by a redevelopment entity pursuant to section 6 of P.L.2000,
c.72 (C.18A:7G-6);

���� "Development
authority" means the New Jersey Schools Development Authority established
pursuant to section 3 of P.L.2007, c.137 (C.52:18A-237);

���� "District" means a
local or regional school district established pursuant to chapter 8 or chapter
13 of Title 18A of the New Jersey Statutes, a county special services school
district established pursuant to article 8 of chapter 46 of Title 18A of the
New Jersey Statutes, a county vocational school district established pursuant
to article 3 of chapter 54 of Title 18A of the New Jersey Statutes, and a
district under full State intervention pursuant to P.L.1987, c.399 (C.18A:7A-34
et al.);

���� "District aid
percentage" means the number expressed as a percentage derived from
dividing the district's equalization aid calculated pursuant to section 11 of
P.L.2007, c.260 (C.18A:7F-53) as of the date of the commissioner's
determination of preliminary eligible costs by the district's adequacy budget
calculated pursuant to section 9 of P.L.2007, c.260 (C.18A:7F-51) as of the
date of the commissioner's determination of preliminary eligible costs;

���� "Excess costs" means
the additional costs, if any, which shall be borne by the district, of a school
facilities project which result from design factors that are not required to
meet the facilities efficiency standards and not approved pursuant to paragraph
(1) of subsection g. of section 5 of P.L.2000, c.72 (C.18A:7G-5) or are not
authorized as community design features included in final eligible costs
pursuant to subsection c. of section 6 of P.L.2000, c.72 (C.18A:7G-6);

���� "Facilities efficiency
standards" means the standards developed by the commissioner pursuant to
subsection h. of section 4 of P.L.2000, c.72 (C.18A:7G-4);

���� "Final eligible
costs" means for school facilities projects to be constructed by the
development authority, the final eligible costs of the school facilities
project as determined by the commissioner, in consultation with the development
authority, pursuant to section 5 of P.L.2000, c.72 (C.18A:7G-5); for
demonstration projects, the final eligible costs of the project as determined
by the commissioner and reviewed by the development authority which may include
the cost of community design features determined by the commissioner to be an
integral part of the school facility and which do not exceed the facilities
efficiency standards, and which were reviewed by the development authority and
approved by the State Treasurer pursuant to section 6 of P.L.2000, c.72
(C.18A:7G-6); and for districts other than SDA districts, final eligible costs
as determined pursuant to paragraph (1) of subsection h. of section 5 of
P.L.2000, c.72 (C.18A:7G-5);

���� "Financing
authority" means the New Jersey Economic Development Authority established
pursuant to P.L.1974, c.80 (C.34:1B-1 et seq.);

���� "FTE" means a
full-time equivalent student which shall be calculated as follows: each student
in grades 1 through 12 shall be counted at 100 percent of the actual count of
students, in the case of districts which operate a half-day kindergarten
program each kindergarten student shall be counted at 50 percent of the actual
count of kindergarten students, in the case of districts which operate a
full-day kindergarten program or which currently operate a half-day
kindergarten program but propose to build facilities to house a full-day
kindergarten program each kindergarten student shall be counted at 100 percent
of the actual count of kindergarten students, and each preschool student who is
enrolled in a full-day preschool program pursuant to section 12 of P.L.2007,
c.260 (C.18A:7F-54) shall be counted at 100 percent of the actual count of
preschool students.� In addition, each preschool disabled child who is entitled
to receive a full-time program pursuant to N.J.S.18A:46-6 shall be counted at
100 percent of the actual count of these students in the district;

���� "Functional
capacity" means the number of students that can be housed in a building in
order to have sufficient space for it to be educationally adequate for the
delivery of programs and services necessary for student achievement of the core
curriculum content standards.� Functional capacity is determined by dividing
the existing gross square footage of a school building by the minimum area
allowance per FTE student pursuant to subsection b. of section 8 of P.L.2000,
c.72 (C.18A:7G-8) for the grade level students contained therein.� The
difference between the projected enrollment determined pursuant to subsection
a. of section 8 of P.L.2000, c.72 (C.18A:7G-8) and the functional capacity is
the unhoused students that are the basis upon which the additional costs of
space to provide educationally adequate facilities for the entire projected
enrollment are determined.� The existing gross square footage for the purposes
of defining functional capacity is exclusive of existing spaces that are not
contained in the facilities efficiency standards but which are used to deliver
programs and services aligned to the core curriculum content standards, used to
provide support services directly to students, or other existing spaces that
the district can demonstrate would be structurally or fiscally impractical to
convert to other uses contained in the facilities efficiency standards;

���� "'Kit of Parts'
standardized school design elements" means the prototypical design
utilizing standardized Modern Building Component Elements, Model Educational
Specifications, and Model Program Templates created by the development
authority for the efficient, adaptable, and scalable organization and
configuration of instructional, large group assembly, and other elements within
a school facilities project;

���� "Lease purchase
payment" means and includes payment of principal and interest for lease
purchase agreements in excess of five years approved pursuant to subsection (f)
of N.J.S.18A:20-4.2 prior to the effective date of P.L.2000, c.72 (C.18A:7G-1
et al.) to finance the purchase or construction of school facilities, additions
to school facilities, or the reconstruction, remodeling, alteration,
modernization, renovation or repair of school facilities, including
furnishings, equipment, architect fees and issuance costs.� Approved lease
purchase agreements in excess of five years shall be accorded the same
accounting treatment as school bonds;

���� "Local share" means,
in the case of a school facilities project to be constructed by the development
authority, the total costs less the State share as determined pursuant to
section 5 of P.L.2000, c.72 (C.18A:7G-5); in the case of a demonstration
project, the total costs less the State share as determined pursuant to
sections 5 and 6 of P.L.2000, c.72 (C.18A:7G-5 and C.18A:7G-6); and in the case
of a school facilities project which shall be financed pursuant to section 15
of P.L.2000, c.72 (C.18A:7G-15), the total costs less the State share as
determined pursuant to that section;

���� "Local unit" means a
county, municipality, board of education or any other political subdivision or
instrumentality authorized to construct, operate and maintain a school
facilities project and to borrow money for those purposes pursuant to law;

���� "Local unit
obligations" means bonds, notes, refunding bonds, refunding notes, lease
obligations and all other obligations of a local unit which are issued or
entered into for the purpose of paying for all or a portion of the costs of a
school facilities project, including moneys payable to the development
authority;

���� "Long-range facilities
plan" means the plan required to be submitted to the commissioner by a
district pursuant to section 4 of P.L.2000, c.72 (C.18A:7G-4);

���� "Maintenance" means
expenditures which are approved for repairs and replacements for the purpose of
keeping a school facility open and safe for use or in its original condition,
including repairs and replacements to a school facility's heating, lighting,
ventilation, security and other fixtures to keep the facility or fixtures in
effective working condition. Maintenance shall not include capital maintenance
or contracted custodial or janitorial services, expenditures for the cleaning
of a school facility or its fixtures, the care and upkeep of grounds or parking
lots, and the cleaning of, or repairs and replacements to, movable furnishings
or equipment, or other expenditures which are not required to maintain the
original condition over the school facility's useful life. Approved maintenance
expenditures shall be as determined by the commissioner pursuant to regulations
to be adopted by the commissioner pursuant to section 26 of P.L.2000, c.72
(C.18A:7G-26);

���� "Materials and Systems
Standards" means the development authority's "Materials and Systems
Standards Manual" and "Construction Details Manual," which are:

���� intended to implement
standardized designs in support of repeatable, durable, and cost-effective
construction of school facilities projects;

���� comprised of "Design
Requirements" prescribing the approved standards for selection of
materials, systems, and equipment to be incorporated into a school facilities
project; and

���� comprised of
"Construction Details" containing standardized construction details
for the construction of school facilities projects.

���� "Model Building Component
Elements" means the development of standardized prototypical model room
layouts for instructional, large group, and core component building elements;

���� "Model Educational
Specifications" means the development of:

���� room educational
specifications, which describe a school's programs and activities, spatial
relationships, and special environmental requirements for each space; and

���� room fit-out lists, which
provide the number, type, and size of equipment, furniture, and fixtures
contained in each room inclusive of the party responsible for providing them in
a school facility.

���� "Model Program
Templates" means the development of programmatic models that define the
number and type of rooms and spaces to be provided in a school facility;

���� "Model school design
program" means the design standards for school facilities projects
comprised of the "Kit of Parts" standardized school design elements,
developed by the development authority for the adaptable and scalable configuration
and repeatable and efficient construction of school facilities projects,
pursuant to paragraph (2) of subsection h. of section 4 of P.L.2000, c.72
(C.18A:7G-4);

���� "Other allowable
costs" means the costs of temporary facilities, site development,
acquisition of land or other real property interests necessary to effectuate
the school facilities project, fees for the services of design professionals,
including architects, engineers, construction managers and other design
professionals, legal fees, financing costs and the administrative costs of the
development authority and the financing authority or the district incurred in
connection with the school facilities project;

���� "Other facilities"
means athletic stadiums, swimming pools, ice rinks, any associated structures
or related equipment tied to such facilities including, but not limited to,
grandstands and night field lights, greenhouses, facilities used for non-instructional
or non-educational purposes, and any structure, building, or facility used
solely for school administration;

���� "Preliminary eligible
costs" means the initial eligible costs of a school facilities project as
calculated pursuant to the formulas set forth in section 7 of P.L.2000, c.72
(C.18A:7G-7) or as otherwise provided pursuant to section 5 of P.L.2000, c.72
(C.18A:7G-5) and which shall be deemed to include the costs of construction and
other allowable costs;

���� "Project charter"
means the document that sets forth the scope, budget, and schedule of a school
facilities project, as approved by the board of the development authority, and
which is updated from time to time during the course of the school facilities
project with board approval.

���� "Redevelopment
entity" means a redevelopment entity authorized by a municipal governing
body to implement plans and carry out redevelopment projects in the
municipality pursuant to the "Local Redevelopment and Housing Law,"
P.L.1992, c.79 (C.40A:12A-1 et al.);

���� "School bonds"
means, in the case of a school facilities project which is to be constructed by
the development authority, a redevelopment entity, or a district under section
15 of P.L.2000, c.72 (C.18A:7G-15), bonds, notes or other obligations issued by
a district to finance the local share; and, in the case of a school facilities
project which is not to be constructed by the development authority or a
redevelopment entity, or financed under section 15 of P.L.2000, c.72
(C.18A:7G-15), bonds, notes or other obligations issued by a district to
finance the total costs;

���� "School enrollment"
means the number of FTE students other than evening school students, including
post-graduate students and post-secondary vocational students, who, on the last
school day prior to October 16 of the current school year, are recorded in the
registers of the school;

���� "School facility"
means and includes any structure, building, or facility used wholly or in part
for educational purposes by a district and facilities that physically support
such structures, buildings and facilities, such as district wastewater
treatment facilities, power generating facilities, and steam generating
facilities, but shall exclude other facilities;

���� "School facilities
project" means the planning, acquisition, demolition, construction,
improvement, alteration, modernization, renovation, reconstruction or capital
maintenance of all or any part of a school facility or of any other personal property
necessary for, or ancillary to, any school facility, and shall include
fixtures, furnishings and equipment, and shall also include, but is not limited
to, site acquisition, site development, the services of design professionals,
such as engineers and architects, construction management, legal services,
financing costs and administrative costs and expenses incurred in connection
with the project;

���� "SDA district" is a
district that received education opportunity aid or preschool expansion aid in
the 2007-2008 school year
.� In the event that the Legislature approves a
list of SDA districts submitted by the commissioner pursuant to section 2 of P.L.���
, c.���� (C.������� ) (pending before the Legislature as this bill), an SDA
district means a district included on that list
;

���� "Special education
services pupil" means a pupil receiving specific services pursuant to
chapter 46 of Title 18A of the New Jersey Statutes;

���� "State aid" means
State municipal aid and State school aid;

���� "State debt service
aid" means for school bonds issued for school facilities projects approved
by the commissioner after the effective date of P.L.2000, c.72 (C.18A:7G-1 et
al.) of districts which elect not to have a redevelopment entity construct the
project or which elect not to finance the project under section 15 of P.L.2000,
c.72 (C.18A:7G-15), the amount of State aid determined pursuant to section 9 of
P.L.2000, c.72 (C.18A:7G-9); and for school bonds or certificates of
participation issued for school facilities projects approved by the
commissioner prior to the effective date of P.L.2000, c.72 (C.18A:7G-1 et al.)
the amount of State aid determined pursuant to section 10 of P.L.2000, c.72
(C.18A:7G-10);

���� "State municipal
aid" means business personal property tax replacement revenues, State
urban aid and State revenue sharing, as these terms are defined in section 2 of
P.L.1976, c.38 (C.40A:3-3), or other similar forms of State aid payable to the
local unit and to the extent permitted by federal law, federal moneys
appropriated or apportioned to the municipality or county by the State;

���� "State school aid"
means the funds made available to school districts pursuant to section 11 of
P.L.2007, c.260 (C.18A:7F-53);

���� "State share" means
the State's proportionate share of the final eligible costs of a school
facilities project to be constructed by the development authority as determined
pursuant to section 5 of P.L.2000, c.72 (C.18A:7G-5); in the case of a demonstration
project, the State's proportionate share of the final eligible costs of the
project as determined pursuant to sections 5 and 6 of P.L.2000, c.72
(C.18A:7G-5 and C.18A:7G-6); and in the case of a school facilities project to
be financed pursuant to section 15 of P.L.2000, c.72 (C.18A:7G-15), the State
share as determined pursuant to that section;

���� "Total costs" means,
in the case of a school facilities project which is to be constructed by the
development authority or a redevelopment entity or financed pursuant to section
15 of P.L.2000, c.72 (C.18A:7G-15), the final eligible costs plus excess costs
if any; and in the case of a school facilities project which is not to be
constructed by the development authority or a redevelopment entity or financed
pursuant to section 15 of P.L.2000, c.72 (C.18A:7G-15), the total cost of the
project as determined by the district.

(cf: P.L.2023, c.311, s.2)

���� 2.��� (New section)� a.� By
March 1, 2026 and every five years thereafter, the commissioner shall recommend
to the Legislature the economic and school facilities adequacy criteria to be
used in the designation of districts as SDA districts and a list of the school
districts which meet the criteria for SDA district designation.� The economic
criteria may include, but not be limited to: equalized valuation per resident
pupil as equalized valuation is defined in section 3 of P.L.2007, c.260
(C.18A:7F-45); district income per resident pupil as district income is defined
in section 3 of P.L.2007, c.260 (C.18A:7F-45); and the municipal overburden, as
defined by the commissioner, of the municipality or municipalities in which the
district is situate.� The school facilities adequacy criteria may include, but
not be limited to, overcrowding at the elementary, middle, and high school
levels and critical health and safety needs.

���� b.��� In the case of a school
district that was designated as an SDA district prior to the effective date of
P.L.��� , c.��� (C.������� ) (pending before the Legislature as this bill), but
loses its designation following the effective date of that act, the district
shall continue to receive 100 percent State support of the final eligible costs
of any school facilities project that was in the design or construction phase
prior to the district losing its SDA district designation.

���� 3.��� This act shall take
effect immediately.

STATEMENT

���� This bill provides that by
March 1, 2026 and every five years thereafter, the Commissioner of Education is
to recommend to the Legislature the economic and school facilities adequacy
criteria to be used in the designation of school districts as SDA districts and
a list of the school districts that meet the criteria for SDA designation.� The
economic criteria may include: equalized valuation per resident pupil; district
income per resident pupil; and the municipal overburden, as defined by the
commissioner, of the municipality or municipalities in which the district is
situate.

���� The bill stipulates that in
the case of a school district that was designated as an SDA district prior to
the bill�s effective date, but loses its designation as an SDA district after
the bill�s effective date, the district will continue to receive 100 percent
State support of the final eligible costs of any school facilities project that
was in the design or construction phase prior to the district losing its SDA
district designation.