This bill establishes a cap on the reduction of State school aid for school districts in New Jersey, ensuring that no district experiences a decrease in State aid greater than five percent of its net budget from the previous year. The bill defines State school aid to include various forms of funding such as equalization aid, special education categorical aid, security aid, and transportation aid. This cap aims to provide financial stability for school districts by limiting the potential impact of budget cuts on their funding.

Additionally, the bill amends existing legislation to clarify the distribution of State aid during the 2019-2020 through 2024-2025 school years, particularly for districts with positive or negative State aid differentials. It introduces new provisions that allow certain districts to receive State aid based on specific criteria, including their tax rates and spending levels relative to adequacy. The bill also outlines the process for reallocating any reductions in State aid, ensuring that adjustments are made systematically across various aid categories. Overall, the legislation seeks to create a more predictable and equitable funding environment for New Jersey's school districts.

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