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, such as those located in municipalities with higher tax rates and those participating in specific grant programs, to receive State aid without reductions under certain conditions. The bill also outlines the process for reallocating any remaining adjustment aid or non-SFRA aids to other State aid categories as determined by the commissioner.

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