This bill introduces a cap on the reduction of State school aid, limiting any decrease in funding to a maximum of one percent from the previous year's aid amount. This provision applies to all school districts, ensuring that no district will experience a reduction greater than this threshold in any given school year. The bill overrides previous laws that may conflict with this new cap, thereby establishing a consistent framework for State school aid calculations.

Additionally, the bill amends existing legislation to clarify the conditions under which school districts may receive State aid, particularly in cases where the State aid differential is positive or negative. It specifies that certain districts, such as those located in municipalities with higher tax rates or those that are spending below adequacy, may be exempt from reductions in State aid. The bill also outlines the allocation of any decreases in aid, prioritizing adjustment aid and other categories of funding. Overall, the legislation aims to provide more stability and predictability in State funding for schools.

Statutes affected:
Introduced: 18A:7F-68