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 conditions under which school districts may receive State aid, particularly in relation to the State aid differential. It specifies that districts with a positive State aid differential will see reductions in their State aid according to a predetermined schedule over the next several school years. The bill also includes provisions for certain districts that meet specific criteria, such as those located in municipalities with higher tax rates or those that are regional school districts, to be exempt from these reductions. Overall, the bill seeks to create a more predictable and equitable funding environment for New Jersey's school districts.

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