This bill amends the calculation of costs associated with providing an adequate education, extraordinary need grants, and the determination of education grants, while also introducing fiscal capacity disparity aid grants. Key changes include the adjustment of the annual cost of education per pupil from $4,100 to $4,351, with additional differentiated aid for students eligible for free or reduced-price meals, English language learners, and those receiving special education services. The bill also establishes a new section for fiscal capacity disparity aid, which provides grants based on a municipality's equalized valuation per pupil, with specific thresholds for grant eligibility and amounts.

Additionally, the bill modifies the annual adjustment process for these grants, mandating a 2% increase each year starting July 1, 2027, and introduces new definitions for terms such as "grant floor," "grant ceiling," and "maximum grant." The determination of education grants is also revised to include the new fiscal capacity disparity aid alongside the extraordinary need grants. The effective date for these changes is set for July 1, 2026.

Statutes affected:
Introduced: 198:40-a
As Amended by the House: 198:40-a, 198:40-d, 198:41