3. a. The boards of education or governing bodies of two or more school districts seeking to form a limited purpose or all purpose regional district and that wish to apply for funding under the grant program established pursuant to section 2 of P.L.2021, c.402 (C. 18A:13-47.2) shall jointly submit an application to the division. The application shall identify and designate at least one project coordinator from one or more participating districts who shall be responsible for overseeing the activities associated with conducting the feasibility study proposed under the application and for fulfilling any requirements prescribed by the division in the receipt of a grant under the program. The application shall also include:

(1) copies of the resolutions adopted by all participating boards of education or governing bodies, as applicable, certifying a commitment to participate in a feasibility study. An application may propose a feasibility study that would include an analysis of the inclusion of non-participating districts in a proposed regional district, in which case the application shall state that the feasibility study will present findings and recommendations related both to the consolidation of participating districts into a regional district and alternative findings and recommendations contingent upon the inclusion of the non-participating districts;

(2) a detailed narrative describing the proposed regionalization plan or plans to be studied, as well as potential areas for educational and fiscal improvement. The feasibility study shall include, but need not be limited to, options to address issues related to:

(a) facility utilization;

(b) cost sharing and methods of apportionment, including but not limited to, equalized valuation, pupil enrollment, or a combination of the two as well as whether such apportionment should take effect immediately or on a phase-in or transitional basis over a certain number of years;

(c) the allocation of existing school debt and proceeds from the sale of unutilized or underutilized facilities;

(d) projected enrollment trends, including the impact on the demographic breakdown of the student population, including race, ethnicity, and national origin, and projected changes in class size;

(e) current and projected staffing needs and costs, including retirement and attrition trends for instructional, administrative, and support staff;

(f) an analysis of the differences in the salaries and terms and conditions of employment in elementary, middle, and high school teachers’, administrators’, and support staffs’ contracts among the various districts and the distribution of all compensation among covered employees, including the potential impact of expired contracts moving forward, which analysis shall be developed by school districts and the majority representatives of all recognized bargaining units;

(g) State aid and tax revenue projections;

(h) potential cost savings or increases from regionalization;

(i) student seat time and distance traveled, as well as potential increased or reduced transportation costs;

(j) kindergarten through 12 curriculum coordination improvements;

(k) potential enrichment of educational programs for students; and

(l) calculation and methods of apportionment for determining membership on the regional district board of education among the constituent districts;

(3) a description of the intended use of grant funding in supporting the costs associated with conducting the feasibility study;

(4) a demonstration of the boards’ or governing bodies’ capacities to oversee the proposed feasibility study;

(5) a list of personnel or outside consultants who would be conducting the feasibility study, which consultants shall be selected in accordance with applicable State law;

(6) a plan to incorporate public and stakeholder participation and ideas in the regionalization study process, which shall include school board members, parents, teachers, administrators, non-instructional staff, union representatives, municipal officials, and interested citizens; and

(7) any other materials or information as may be required by the division to effectively evaluate the proposed feasibility study and assess the costs associated with conducting the feasibility study.

b. In order to be eligible to receive a grant under the grant program established pursuant to section 2 of P.L.2021, c.402 (C. 18A:13-47.2), the boards of education or governing bodies shall demonstrate that the proposed regionalization:

(1) does not, and is not foreseeably likely to, increase or exacerbate the segregation of students by racial, socioeconomic, disability, or English Language Learner status as determined by the number and percentage of students enrolled in the school districts seeking to consolidate or, as applicable, in the school districts from which a school district is seeking to withdraw;

(2) to the maximum extent practicable, will lead to the establishment of a limited purpose or all purpose regional district;

(3) consolidates school districts that are in close geographic proximity of each other. School districts need not be immediately contiguous as long as any geographic separation is not so large as to contradict the potential for improved efficiency and cost savings;

(4) possesses the potential for improved efficiency and cost savings;

(5) possesses the potential to advance an enhanced learning environment for participating districts;

(6) coordinates curriculum across schools and grades throughout the proposed limited purpose or all purpose regional school; and

(7) reflects a documented commitment from the participating districts to make good faith efforts to implement the recommendations of the feasibility study that promote efficiency and quality of education.

c. The Commissioner of Education shall review every application submitted pursuant to this section, except for an application eligible for preliminary approval pursuant to subsection b. of section 4 of P.L.2021, c.402 (C. 18A:13-47.4), and shall certify, in writing, that the newly formed or enlarged regional district will not, and will not be foreseeably likely to, increase or exacerbate segregation among the districts seeking to regionalize or, as applicable, the school districts from which a school district is seeking to withdraw and school districts in the surrounding region as determined by the number and percentage of students affected by such consolidations or withdrawals.

L.2021, c.402, s.3.