This bill amends existing law to ensure that regional school districts are not subject to reductions in State school aid under specific conditions. It introduces a provision stating that a regional school district spending at least 10 percent below adequacy, where each constituent school district is located in a municipality with an equalized total tax rate at least 10 percent greater than the Statewide average, shall not face a reduction in State aid. This addition aims to provide financial stability to regional school districts that meet these criteria, which were previously excluded from similar protections afforded to other types of school districts.

The bill also clarifies the existing framework for State school aid calculations, detailing how aid is allocated based on the State aid differential. It specifies that districts with a negative State aid differential will receive aid equal to their previous year's amount plus a proportionate share of any increase in State aid, while those with a positive differential will see reductions according to a set schedule. The legislation seeks to balance the distribution of State aid among various school districts while ensuring that regional districts facing financial challenges due to their unique structure are adequately supported.

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