NJASA's eNewsletter Volume 27 | May 24, 2019
Special Issue
The Source at NJASA

Senate President's Plan -
" Path to Progress " Advances with 27 Bills


On May 16th, Senate President Steve Sweeney , Senators Paul Sarlo and Steve Oroho and Assembly Majority Leader Lou Greenwald unveiled a package of “Path to Progress” bills designed to fix New Jersey’s fiscal crisis, restore the stability of the pension system and save tens of billions of dollars for taxpayers.

Highlights of the bills would:
  • Require county school superintendents to develop regionalization plans to merge all K-4, K-6 and K-8 districts into K-12 regional school systems, provide funding for regionalization studies, require all local school districts to coordinate both curriculum and schedules with the regional high schools to which they send students, and set up a pilot program permitting the establishment of countywide school districts.
  • Require the state to administer and assume the cost of all Extraordinary Special Education placements above $55,000, replace the use of census-based reimbursement for special education costs with reimbursement based on actual pupil costs, and assign and train a cadre of Administrative Law Judges to handle all special education cases
  • Create a hybrid pension plan for teachers and non-uniformed state, county and municipal employees. The plan protects those with over five years of service who have a non-forfeitable right to their current benefits. It creates a new hybrid plan for new hires and newer employees that provides a defined benefit plan on the first $40,000 of income and a “cash balance” account on income above $40,000 that pays a guaranteed 4% return or 75% of the amount the pension system earns on their account. Any excess earnings would remain within the Teachers’ Pension and Annuity Fund and the Public Employees Retirement System to reduce the unfunded liability.
  • Merger of the high-cost School Employees Health Benefits Plan into the State Health Benefits Plan to be run by an expanded Plan Design Committee, and the shift of all public employees from Platinum-level healthcare plans to Gold plans with an actuarial value of no more than 80 percent upon the expiration of current contracts. Public employers would be required to offer Bronze level plans with an actuarial value of 60 percent to employees with zero premium payments.

The Seven Education-Related Bills Are:
SENATE, No. 3755 Introduced May 16, 2019
Sponsored by: Senator Vin Gopal, District 11 (Monmouth); and Senator Declan J. O'Scanlon, Jr. District 13 (Monmouth)
SYNOPSIS
Requires executive county superintendent of schools to establish consolidation plan to combine all school districts in county, other than preschool or kindergarten through grade 12 districts, into all-purpose regional school districts.
Referred to the Senate Education Committee
SENATE, No. 3756 Introduced May 16, 2019
Sponsored by: Senator M. Teresa Ruiz, District 29 (Essex); Senator Paul A. Sarlo, District 36 (Bergen and Passaic); and Senator Declan J. O'Scanlon , Jr., District 13 (Monmouth)
SYNOPSIS
Requires limited purpose regional school districts to coordinate with constituent districts regarding school calendar and curriculum.
Referred to the Senate Education Committee

SENATE, No. 3757 Introduced May 16, 2019
Sponsored by: Senator Bob Smith , District 17 (Middlesex and Somerset); Senator Steven V. Oroho , District 24 (Morris, Sussex and Warren); and Senator Stephen M. Sweeney , District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
Establishes pilot program in DOE for organization of county administrative school districts.
Referred to the Senate Education Committee

SENATE, No. 3758 Introduced May 16, 2019
Sponsored by: Senator Joseph Pennacchio , District 26 (Essex, Morris and Passaic); Senator Vin Gopal, District 11 (Monmouth); Senator Joseph A. Lagana, District 38 (Bergen and Passaic); and Senator Paul A. Sarlo , District 36 (Bergen and Passaic)
Provides for direct State payment of cost of special education and related services for certain students. 
Referred to the Senate Education Committee
SENATE, No. 3759 Introduced May 16, 2019
Sponsored by: Senator Dawn Marie Addiego , District 8 (Atlantic, Burlington and Camden); and Senator Kristin M. Corrado , District 40 (Bergen, Essex, Morris and Passaic)
SYNOPSIS
Creates special education unit within the Office of Administrative Law; requires annual report.
Referred to the Senate Education Committee

SENATE, No. 3760 Introduced May 16, 2019
Sponsored by: Senator M. Teresa Ruiz, District 29 (Essex); Senator Troy Singleton, District 7 (Burlington); Senator Paul A. Sarlo, District 36 (Bergen and Passaic); and Senator Steven V. Oroho , District 24 (Morris, Sussex and Warren)
SYNOPSIS
Requires municipalities, counties, school districts, and local authorities to regularly meet to discuss shared service agreements.
Referred to Senate Community and Urban Affairs Committee

SENATE, No. 3219 Introduced December 3, 2018
Sponsored by: Senator Robert W. Singer , District 30 (Monmouth and Ocean); and Senator Patrick J. Diegnan, Jr. , District 18 (Middlesex); and Co-Sponsored by: Senators Corrado and Thompson
Eliminates use of census-based funding of special education aid in school funding law. 
Referred to the Senate Education Committee
Pension and Health Benefits, and Unused Sick Leave Bills Are:
SENATE, No. 3753 Introduced May 16, 2019
Sponsored by: Senator Stephen M. Sweeney , District 3 (Cumberland, Gloucester and Salem); Senator Steven V. Oroho , District 24 (Morris, Sussex and Warren); and Senator Declan J. O'Scanlon , Jr., District 13 (Monmouth)
SYNOPSIS
Establishes cash balance plans in PERS and TPAF new public employees and employees with less than five years of service; makes various changes to PERS and TPAF retirement eligibility.
Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
NJASA Pension Consultant Mort Reinhart comments on S3753.

SENATE, No. 3754 Introduced May 16, 2019
Sponsored by: Senator Stephen M. Sweeney , District 3 (Cumberland, Gloucester and Salem); Senator Steven V. Oroho , District 24 (Morris, Sussex and Warren); and Senator Declan J. O'Scanlon , Jr., District 13 (Monmouth)
SYNOPSIS
Terminates SEHBP; terminates SHBP Plan Design Committee; transfers coverage from SEHBP to SHBP; requires certain plans with no employee or retiree contributions; imposes limit on health care benefits for public employees.
Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee 

SENATE, No. 2578 Introduced May 14, 2018
Sponsored by: Senator Stephen M. Sweeney , District 3 (Cumberland, Gloucester and Salem); and
Senator Loretta Weinberg , District 37 (Bergen)
SYNOPSIS
Limits payments for unused sick leave earned after effective date by public officers or employees represented by union; for all public employees, limits vacation leave carry-forward and requires suspension and forfeiture of certain supplemental compensation. 
Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
NJASA, 920 West State Street, Trenton, NJ 08618; 609.599.2900, njasa.net