Official Site of The State of New Jersey

A service is defined as one student receiving one of the listed services in the month. Whether the student receives the service five times a week or once a month, it is reported as one service in this report and the monthly maximum rate applies to that service. Unlike services, Home Instruction is reported as the number of hours. Districts’ monthly actual expenditure reimbursement requests cannot exceed the number of services provided in that month times a monthly maximum per pupil rate.

Consistent with this definition, the Department is not proposing any limit to the frequency of services in the 2026-2027 school year.

In allocating State aid, the commissioner shall establish maximum per service aid amounts for the Chapter services to ensure that the greatest number of eligible students are provided services throughout the school year and that, to the greatest extent possible, the amount annually appropriated for the services is available to reimburse school districts during the entirety of the school year. These maximum per service amounts shall be based on the total appropriation under each of the Chapters, and the average number of documented services delivered in the prior three school years.

Using the amounts appropriated in P.L.2026, c.27 and the average number of services provided in the most recent three school years, the Department has established the following maximum per service amounts for the 2026-2027 school year: 2026-27 Chapters 192 and 193 Annual and Monthly Maximum Rates.

To ensure that eligible students are provided services throughout the school year to the greatest extent possible, Compensatory Education, English as a Second Language, Corrective Speech and Supplementary Education services have a monthly maximum rate in addition to an annual maximum rate. The monthly maximum rate is based on a student receiving services for eight months of the school year (e.g. October – May). If it is anticipated that a student will receive services for nine or more months of the school year, then the monthly maximum expenditure for the student must be less than the monthly maximum rate so that the annual expenditure for the student does not exceed the maximum annual per service amount.

Monthly rates do not apply to Initial and Annual Examination and Classification services, which are one-time services and Home Instruction, which is an hourly rate.

The chapters program will be implemented using the new Chapters Reimbursement system available on the Department’s Homeroom webpage. The system will open in September 2026, to allow districts to submit reimbursement requests. It is critical that the final reimbursement requests are submitted no later than July 15. Prior year expenditures cannot be submitted or reimbursed from the current year appropriations.

The required information for each month is shown in Tables 1 and 2 below. School districts will enter the data for columns B and C. The data entered on these columns must be included on the invoices that are submitted with reimbursement requests.

Monthly Report for September 2026

The Per Service rates will be provided in the system. As noted previously, these are monthly maximum rates for each service, except for Initial and Annual Examination and Classification services, which are one-time services and Home Instruction, which is an hourly rate.

A service is defined as one student receiving one of the listed services in the month. Whether the student receives the service five times a week or once a month, it is reported as one service in this report and the monthly maximum rate applies to that service. Unlike services, Home Instruction is reported as the number of hours. Districts’ monthly actual expenditure reimbursement requests cannot exceed the number of services provided in that month times a monthly maximum per pupil rate.;

Administrative expenses must not exceed six percent of the actual expenditure, and expenses for renting facilities must not exceed 18 percent of the actual expenditure.

Requests for Transportation and/or vehicular classroom maintenance costs must be included under the broader categories provided in the system. If a cost does not fit under the listed categories for transportation, district must reach out to the chapters support for guidance.

School districts are required to upload copies of the invoices showing the number of services for each category and the actual expenditure for the month. Reimbursement requests will not be approved without the supporting invoice uploads. If school district staff are providing the services, payroll reports must be uploaded to substantiate the expenditure.

School districts will be able to submit reimbursement requests in the system only for services which have already been provided for the reporting months. The requests are not for future funding for the remainder of the year.

The Department will reimburse school districts for actual expenditures on a quarterly basis.

The Chapters Reimbursement system will open in September 2026 for school districts to submit their reimbursement requests for the quarter ending September 2026. Districts will be required to submit requests for each month of the quarter, and the monthly reimbursement requests for the number of actual services provided and actual expenditure must be supported by monthly invoices. For example, the first quarter reimbursement requests will be submitted for July, August and September, and must include the invoices uploaded for each of these months. School districts will receive the first quarterly payment by the end of October.

The first reimbursement submission will be for services provided and actual expenditures through September 30, 2026, including any services provided in July and August. The due date for the first reimbursement request will be mid-October 2026.

The annual schedule for request submissions and reimbursements is listed in Table 4 below.

Since the State fiscal year ends on June 30, it is critical that expenditures for 2026-2027 are submitted by July 15, 2027. Prior year expenditures cannot be submitted or reimbursed from the current year budget.

The new statute requires that school districts initially provide services and subsequently, on a quarterly basis, request reimbursement from the State. As such, districts’ accounting of revenue under the programs will differ from prior years. Districts will report their expenses in the month the services are delivered. In order for the accounts to balance before the district receives its quarterly reimbursement, districts will record a receivable and deferred revenue in an amount equal to the expenditures. Upon receipt of the reimbursement from the State, districts will record the funding as revenue and adjust the receivable and deferred revenue amounts accordingly. If any expenditures are not reimbursable by the State, the expenses must be transferred from the fund 20 expense accounts to the general fund expense accounts and paid by the general fund, and the special revenue fund receivable and deferred revenue also must be reversed out of the special revenue accounts.

The Fund 20 revenue accounts are in New Jersey’s Uniform Chart of Accounts and remain unchanged from previous years:

• 20-3232 Nonpublic Auxiliary Services Aid — Compensatory.
• 20-3233 Nonpublic Auxiliary Services Aid — ESL.
• 20-3234 Nonpublic Auxiliary Services Aid — Home Instruction.
• 20-3235 Nonpublic Auxiliary/Handicapped Transportation Aid.
• 20-3236 Nonpublic Handicapped Aid — Supplemental Instruction.
• 20-3237 Nonpublic Handicapped Aid. Revenue received from the State for the cost of providing identification, examination and classification services to nonpublic students.
• 20-3238 Nonpublic Handicapped Aid — Speech Correction.

The expenditures are recorded in the following program codes (in New Jersey’s Uniform Chart of Accounts and unchanged from previous years), in functions and objects as allowable for each program:

• 20-500-xxx-xxx Nonpublic School Program — The unique program codes in the 500 series should be used with revenue source codes in the 3230 series as well as applicable expenditures within the special revenue fund 20.
• 20-502-xxx-xxx New Jersey Nonpublic Auxiliary Services - Basic Skills/Remedial.
• 20-503-xxx-xxx Nonpublic Auxiliary - English as a Second Language.&
• 20-504-xxx-xxx Nonpublic Auxiliary - Home Instruction.
• 20-505-xxx-xxx Nonpublic Auxiliary - Transportation.
• 20-506-xxx-xxx Nonpublic Handicapped - Supplemental Instruction.
• 20-507-xxx-xxx New Jersey Nonpublic Handicapped Services - Appropriation of State aid received for the cost of providing identification, examination and classification services to nonpublic students.
• 20-508-xxx-xxx Nonpublic Handicapped - Corrective Speech.

School districts that submit reimbursement requests in the Chapters Reimbursement System will receive a system-generated report of the quarterly amounts to be reimbursed by the Department. This report is a record of the reimbursements received for the four quarters during the fiscal year. The actual payments included in these reports must be recorded by the LEA as revenue in the 2026-27 fiscal year under Fund 20.

As required by N.J.S.A. 18A:46-19.8 and 18A:46A-9, the maximum per service aid amounts were determined based on the amounts appropriated in the FY 2027 State budget for the programs and the average number of services provided in the past three school years. The Department recognizes that this may yield a situation in which, if the number of actual services provided in the 2026-2027 school year exceeds the three-year average number of services provided, the amounts appropriated may be insufficient to provide funding for the entire fiscal year. To avoid districts incurring expenses that cannot be reimbursed, the Department will report the amount that has been expended year-to-date after making the quarterly reimbursements. This report will allow school districts to assess the possibility that expenses that have been incurred may not be reimbursed and consult with nonpublic schools and service providers accordingly. The Department will also advise districts if it believes that sufficient funding may not be available for the full school year and estimate the time in the school year that funds will no longer be available for reimbursement. If any of a district’s expenditures are not reimbursable by the State, the expenses must be transferred from the fund 20 expense accounts to the general fund expense accounts and paid for by the general fund. The special revenue fund receivable and deferred revenue must be reversed out of the special revenue accounts.

School districts must continue to submit annually the report for auxiliary and remedial services for students in nonpublic schools.

1. On November 5 of each year, each board of education shall report the number of nonpublic school children who attended a nonpublic school located within the district who were identified as eligible to receive examination, classification, and speech correction services pursuant to P.L.1977, c.193 (C.18A:46-19.1 et al.) during the previous school year.
2. Annually, on or before November 5, each board shall file a report on the number of such pupils who have been identified as eligible to receive each auxiliary service as of the last school day in October.