This bill introduces a cap on the reduction of State school aid, limiting any decrease in funding to a maximum of one percent compared to the previous year's aid amount. This provision applies notwithstanding existing laws and regulations, ensuring that no school district will experience a reduction in State school aid exceeding this cap during any school year.

Additionally, the bill amends existing legislation to clarify the calculation of State school aid for districts with positive or negative State aid differentials. It specifies that districts with a positive differential will have their aid reduced according to a defined schedule, while those with a negative differential will receive aid based on their prior year's funding plus a proportionate share of any increases in State aid. The bill also outlines specific exemptions for certain districts based on tax rates and spending adequacy, ensuring that those in need are not disproportionately affected by the aid reductions.

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