New Jersey § 18a:7f-38

§ 18a:7f-38.

a. Notwithstanding the provisions of any other law to the contrary, a school district

shall not adopt a budget pursuant to sections 5 and 6 of P.L.1996, c. 138 ( C.18A:7F-5 and 18A:7F-6 ) with an increase in its adjusted tax levy that exceeds, except as provided in subsection

e. of section 4 of P.L.2007, c. 62 ( C.18A:7F-39 ), the tax levy growth limitation calculated as follows: the sum of the prebudget

year adjusted tax levy and the adjustment for increases in enrollment multiplied by

2.0 percent, and adjustments for an increase in health care costs, increases in amounts for certain normal and accrued liability pension contributions

set forth in sections 1 and 2 of P.L.2009, c. 19 amending section 24 of P.L.1954, c. 84 ( C.43:15A-24 ) and section 15 of P.L.1944, c. 255 ( C.43:16A-15 ) for the year set forth in those sections , and, in the case of an SDA district as defined pursuant to section 3 of P.L.2000, c. 72 ( C.18A:7G-3 ), during the 2018-2019 through the 2024-2025 school years, increases to raise a general

fund tax levy to an amount that does not exceed its local share . b. (1) The allowable adjustment for increases in enrollment authorized pursuant to

subsection a. of this section shall equal the per pupil prebudget year adjusted tax

levy multiplied by EP, where EP equals the sum of: (a) 0.50 for each unit of weighted resident enrollment that constitutes an increase

from the prebudget year over 1%, but not more than 2.5%; (b) 0.75 for each unit of weighted resident enrollment that constitutes an increase

from the prebudget year over 2.5%, but not more than 4%; and (c) 1.00 for each unit of weighted resident enrollment that constitutes an increase

from the prebudget year over 4%. (2) A school district may request approval from the commissioner to calculate EP equal

to 1.00 for any increase in weighted resident enrollment if it can demonstrate that

the calculation pursuant to paragraph (1) of this subsection would result in an average

class size that exceeds 10% above the facilities efficiency standards established

pursuant to P.L.2000, c. 72 ( C.18A:7G-1 et al.). c. (Deleted by amendment, P.L.2010, c. 44 ) d. (1) The allowable adjustment for increases in health care costs authorized pursuant

to subsection a. of this section shall equal that portion of the actual increase in

total health care costs for the budget year, less any withdrawals from the current

expense emergency reserve account for increases in total health care costs, that exceeds

2.0 percent of the total health care costs in the prebudget year, but that is not

in excess of the product of the total health care costs in the prebudget year multiplied

by the average percentage increase of the State Health Benefits Program, P.L.1961,

c. 49 ( C.52:14-17.25 et seq. ), as annually determined by the Division of Pensions and Benefits in the Department

of the Treasury. (2) The allowable adjustment for increases in the amount of normal and accrued liability

pension contributions authorized pursuant to subsection a. of this section shall equal

that portion of the actual increase in total normal and accrued liability pension

contributions for the budget year that exceeds 2.0 percent of the total normal and

accrued liability pension contributions in the prebudget year. (3) In the case of an SDA district, as defined pursuant to section 3 of P.L.2000, c. 72 ( C.18A:7G-3 ), in which the prebudget year adjusted tax levy is less than the school district's

prebudget year local share as calculated pursuant to section 10 of P.L.2007, c. 260 ( C.18A:7F-52 ), the allowable adjustment for increases to raise a tax levy that does not exceed

the school district's local share shall equal the difference between the prebudget

year adjusted tax levy and the prebudget year local share. e. (Deleted by amendment, P.L.2010, c. 44 ) f. The adjusted tax levy shall be increased or decreased accordingly whenever the

responsibility and associated cost of a school district activity is transferred to

another school district or governmental entity.