An Act providing for the submission to the voters of each county in the State a binding referendum on the establishment of a county administrative school district to govern and operate all public schools in the county.

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

1. The Legislature finds and declares that:

a. Property tax rates in this State are among the highest in the nation while New Jersey also spends more money, per pupil, on education than any other state in the nation.

b. New Jersey's present system of public school education has led to the creation of over 600 school districts, resulting in inefficiencies and redundancies in the system and contributing significantly to New Jersey's high property tax rates.

c. For these reasons, it is appropriate to submit a binding referendum to the voters of each county in this State to determine whether the county should establish a county-based public school system.

2. To ascertain the sentiment of the residents of each county, the following public question shall be submitted to the people at the general election to be held in November, 2011, in the manner provided by this act and by Title 19 of the Revised Statutes for the submission to the people of public questions to be voted upon by the voters of the entire State. It shall be the duty of the Secretary of State to arrange for the submission of the public question in accordance with the provisions of this act and of Title 19 of the Revised Statutes. The same notice shall be given, if possible, as is required by law of that election, and the people of each county may at that election vote for or against the question in accordance with the provisions of section 3 of this act.

3. There shall be included on each sample and official ballot the instructions set forth below on voting on the nonbinding referendum:

If you approve of the question printed below make a cross (X), plus (+) or check (a) in the square opposite the word "Yes." If you disapprove of the question printed below make a cross (X), plus (+) or check (a) in the square opposite the word "No."

If voting machines are used, a vote of "Yes" or "No" shall be the equivalent of the markings, respectively.

ESTABLISHMENT OF A COUNTY ADMINISTRATIVE PUBLIC SCHOOL DISTRICT

YES

Shall this county establish a county administrative school district and transfer to it the governance and operation of the county's local public school districts and any county vocational school district or county special services school district located in the county, in accordance with the provisions of P.L. , c. (C. ) (pending before the Legislature as S. of 2010)?

INTERPRETIVE STATEMENT

Voter approval of this question would transfer effective July 1, 2013 the governance and operation of all of the local school districts, and any county vocational school district or county special services school district located in the county, to a county administrative school district. The county administrative school district would be governed in accordance with the provisions of P.L. , c. (C. ) (pending before the Legislature as S. of 2010). This law provides for the establishment of a county board of education and a chief school administrator to supervise the operations of the county district. This law also provides for the establishment of a board of school estimate to develop the budget for the county administrative school district and to determine the amount of school taxes necessary for the operation of the county administrative school district. The operational expenses for the schools in each municipality will be calculated for each municipality and school taxes will continue to be raised to support operational expenses as they are currently. A per pupil tax levy amount will be calculated to support the administrative and other services provided at the county level and the municipality will also be responsible for raising that per pupil amount through the municipal tax base. The law does not provide for ratables to be shared across the county. This law permits local boards of education to remain in existence, but these boards would act only in an advisory capacity. Under this law no student would be required to change the school at which the student was enrolled prior to the creation of the county district. The Office of the State Auditor in 2006 estimated that the salary and benefit costs for superintendents of schools, assistant superintendents of schools, school business administrators, and information technology coordinators employed at that time in local public school districts, county vocational school districts, and county special services school districts equaled approximately $553 million Statewide allocated as follows:

Atlantic County - $17.8 million;

Bergen County - $60.1 million;

Burlington County - $30.6 million;

Camden County - $35.9 million;

Cape May County - $7.2 million;

Cumberland County - $12.2 million;

Essex County - $52.6 million;

Gloucester County - $20.0 million;

Hudson County - $32.0 million;

Hunterdon County - $12.7 million;

Mercer County - $19.7 million;

Middlesex County - $39.5 million;

Monmouth County - $44.6 million;

Morris County - $33.6 million;

Ocean County - $25.3 million;

Passaic County - $29.7 million;

Salem County - $5.7 million;

Somerset County - $19.7 million;

Sussex County - $12.3 million;

Union County - $31.5 million;

Warren County - $10.5 million.

The elimination of these positions would be factored into the overall cost savings that may be realized by the establishment of a county administrative school district.

4. The votes "Yes" and "No" by ballot or voting machine shall be counted and the result thereof returned by the election officer, and a canvass of the election had in the same manner as is provided for by law in the case of the election of a Governor, and the approval or disapproval of this question so determined shall be declared in the same manner as the result of an election for a Governor. The votes "Yes" and "No" on this question shall be reported for each county.

5. There is appropriated the sum of $5,000 to the Department of State for expenses in connection with the publication of notice pursuant to section 2 of this act.

6. This act shall take effect upon the enactment into law of P.L. , c. (C. ) (pending before the Legislature as Senate Bill No. of 2010).

STATEMENT

This bill provides for the submission of a binding referendum to the voters of this State at the November, 2011 general election. The referendum would give the voters in each county the opportunity to establish a county administrative school district to centralize public school governance and operations at the county level in accordance with the provisions of P.L. , c. (C. ) (pending before the Legislature as Senate Bill No. of 2010).

Under the provisions of P.L. , c. (C. ) (pending before the Legislature as Senate Bill No. of 2010), a county school board would be established and a chief school administrator would be appointed by the Governor, and they would be responsible for supervising the operations of the county district. A board of school estimate would develop a county administrative school district budget and would determine the amount of school taxes necessary for the operation of the district. The law would allow local boards of education to remain in place, however, these boards would only be advisory. The law also would provide that students remain in the school in which they were enrolled prior to the establishment of the county administrative school district.

The Office of the State Auditor estimated in 2006 that the salary and benefit costs for superintendents of schools, assistant superintendents of schools, school business administrators, and information technology coordinators employed at that time in local public school districts, county vocational school districts, and county special services school districts equaled approximately $553 million Statewide. The elimination of these positions would be factored into the overall cost savings that may be realized by the establishment of a county administrative school district.