Assemblyman Schnall’s Legislation Fixing Funding for Nonpublic School Services Becomes Law

Lakewood, NJ — Legislation reforming New Jersey’s nonpublic school auxiliary services funding program, known as Chapter 192/193, was signed into law by former Governor Phil Murphy as one of his final actions in office.

The bill, sponsored by Assemblyman Avi Schnall, updates and streamlines the way Chapter 192/193 funds are allocated to nonpublic schools, ensuring that existing state dollars are fully utilized to provide compensatory and remedial education services to eligible students—without increasing overall state spending.

Chapter 192 funding was established to support nonpublic school students who require additional educational services. However, the allocation system has long relied on outdated enrollment data, creating significant inefficiencies. In fast-growing communities, this lag has resulted in underfunding, while in other areas it has led to unused allocations that must be returned to the state.

For Fiscal Year 2024 (SY23-24), unused allocations that had to be returned to the state totaled $15,841,336. Lakewood’s portion of that figure was $6,635,333 – more than 40 percent of the total.

Under the new law, funding will be based on current student data and on the actual services delivered by schools, rather than projections. The legislation also requires the Commissioner of Education to ensure that all allocated funds are used within the school year, with adjustments made to maximize per-student services. These changes are intended to increase instructional time, reduce class sizes, and improve program effectiveness, all within existing budgetary constraints.

“This legislation reflects years of collaboration and careful work to fix a system that was not serving students as intended,” Schnall said. “I am grateful to Agudath Israel of America’s New Jersey office, and especially to Rabbi Shlomo Schorr, for their leadership and persistence in helping move this bill across the finish line.”

The reforms take effect beginning with the upcoming school year and are expected to significantly improve the delivery of auxiliary services to nonpublic school students across New Jersey.